Question
ABC Construction Company was contracted by Builders Developers to build a high-rise residential complex in Nairobi, Kenya. The project was slated to be completed within
ABC Construction Company was contracted by Builders Developers to build a high-rise residential complex in Nairobi, Kenya. The project was slated to be completed within 18 months, with a budget of $20 million. However, as construction progressed, several issues arose, leading to a dispute between the parties. ABC Construction encountered unforeseen challenges, including adverse weather conditions and delays in obtaining necessary permits from local authorities. These delays pushed the project timeline beyond the agreed-upon schedule. Builders Developers raised concerns about the quality of workmanship, citing instances of substandard materials and construction defects. They argued that these deficiencies could compromise the safety and structural integrity of the building.
The initial budget of $20 million was quickly surpassed due to the delays and additional expenses incurred during construction. ABC Construction attributed the cost overruns to the unforeseen challenges and changes in project scope requested by Builders Developers. Disagreements arose regarding the interpretation of contract clauses, particularly those related to project milestones, payment schedules, and dispute resolution mechanisms. Both parties accused each other of breaching contractual obligations. Builders Developers sought to impose liquidated damages on ABC Construction for the delays in project completion, as stipulated in the contract. However, ABC Construction argued that the delays were beyond their control and disputed the validity of the liquidated damages clause. Given the complexity of the issues involved and the potential impact on project completion, Builders Developers are conflicted about which ADR method they ought to use and seek your guidance.
(a)Discuss the appropriate method to resolving the dispute between ABC Construction Company and Builders Developers, justifying your choice over alternative methods. argue using kenyan jurisdiction
[15 Marks]
(b)Critically examine the legal framework governing the chosen method for resolving the dispute between ABC Construction Company and Builders Developers, highlighting its inherent limitations and inadequacies. argue using kenya jurisdiction [15 Marks]
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