Building company awarded over Lm15,000

Mr Justice Noel Cuschieri, sitting in the First Hall of the Civil Court, upheld a writ of summons filed by a contractor and ordered the Accountant General and the Director of Works to pay over Lm15,000 for construction works.

Vassallo Brothers Ltd filed its writ in 1994 against the Accountant General and the Director of Works. Angiolina Attard, Victor and Karmena Borg and Martin Fenech were later called into the suit.

The company claimed that, on instructions from the Accountant General and the Director of Works, it had carried out the construction and finishing of three garages and two maisonettes at Gharghur following a letter of acceptance of February 20, 1992. It said it was still owed the sum of Lm21,442.69 from the government as balance of fees for the works.

The Accountant General and the Director of Works pleaded that the company had been fully paid for the works save for a remaining balance of Lm1,677.86, which sum would be paid directly to the company.

The court noted that the works had originated from a project for road works in Gharghur. The project involved the demolition of private property which was to be reconstructed on a separate site. This property consisted of two maisonettes and three garages which belonged to Attard who was called into the suit. She pleaded that the writ was time-barred and that she had no contractual relationship with the company as all the works were at the charge of the government.

Mr Justice Cuschieri added that it resulted that following discussions with the then Minister for Development, Michael Falzon, an agreement was reached whereby Attard's property would be demolished and reconstructed by the government. Attard was to take possession of the newly constructed property in a ready and habitable state.

The contract of works was awarded by direct order and the letter of acceptance stipulated that the total contract price was estimated at Lm33,557.31. However, despite this agreement, the works were not carried out as per the original plan but in accordance with a plan made by architect Carm Lino Spiteri.

The architect told the court he had been requested by the minister to make new proposals for a plan. Plaintiff company confirmed it did not know who had engaged Spiteri's services and that the plans had been delivered by an employee of the architect.

Mr Justice Cuschieri said it resulted that the area stipulated on the new plan was much larger than that of the original plans issued by the government architects. As a result, the discrepancy between the estimated cost of the works and the final costs of Lm49,038.49 were almost all due to the extension of the building. The senior quantity surveyor of the Works Department confirmed to the court that the latter sum was acceptable to the department as the value of the works. However, the Finance Ministry had not approved the difference in the price and this had led to the litigation.

The court found that Attard was responsible towards the company for Lm3,654.20 for extra works she had commissioned. However, the company's action against Attard was barred by lapse of time and she could not be condemned to pay this sum to the company.

It further resulted that Victor and Karmena Borg and Martin Fenech were not involved in this issue.

The court then condemned the Accountant General and the Director of Works to pay Vassallo Brothers Ltd Lm15,481.18 together with interest.