Contractor asks NHC to hold US firm’s cash
Local contractor Epco Builders has asked the High Court to bar the National Housing Corporation (NHC) from releasing Sh123 million to American firm Lemna International Inc following a pay dispute over 230 houses it was sub-contracted to build in the State corporation’s Lang’ata housing scheme.
Epco Builders says Lemna, which was hired by the NHC to oversee construction of the houses, subcontracted it to do the works at Sh862 million. It adds that it completed the works but Lemna is yet to pay it a Sh123 million balance despite several demands.
The local subcontractor adds that letters to the NHC requesting the State corporation to intervene have failed to elicit
The NHC is yet to respond to the suit but has asked the High Court to strike it out, arguing it has no contract with Epco Builders hence should not be dragged into the payment dispute.
The 230 houses are part of the NHC’S Lang’ata Housing Scheme Phase IV. The houses were completed in 2012.
“Lemna has in breach of the contract failed, ignored or neglected to pay Epco Builders the sum of Sh123,818,265 and has continually ignored demand letters and reminders from Epco Builders...” Epco says.