HARARE Construction group Murray and Roberts (M&R) Zimbabwe has instituted legal action against an unnamed British company to recover 1.5 million owed after they were sub-contracted to build the multi-million-pound new British embassy complex in Harare.Despite making a 10 million profit from the project, the main contractor is still to settle the outstanding amount owed to the local construction group, M&R said in its latest report.
As at the last financial year end an amount of 1 500 000 was outstanding and has not been paid to date by the main contractor, M&R chairman Paddy Zhanda said in his report accompanying the groups half year results.
Murray and Roberts Construction Zimbabwe has discharged all its obligations on the project as per the contract and the agreed final account and is now taking the necessary legal procedures to recover the outstanding amount.
Zhanda said the project was “practically completed and handed over in March last year, at an agreed value of 16 100 000.
According to the British Foreign Office, the unnamed main contractor was awarded the tender at an initial cost of 17 million but completed the embassy complex at a total cost of 27 million.
M&R had been sub-contracted at an agreed cost of 16.1 million and completed the complex in March last year.
Post published in: Economy