In a legal development concerning the construction of a K78 million central administration building for the University of Goroka (UOG), the National Court has intervened to facilitate arbitration between the university and the terminated contractor, Future World Design (PNG) Limited. Presiding over the case, Judge Collin Makail emphasized the importance of resolving the dispute through arbitration rather than prolonged court proceedings. The court ordered both parties to engage in discussions regarding two key issues: the safety of the building and the circumstances surrounding the termination of the contract. "This is a matter that does not necessarily require court intervention. It should be discussed at a round table, and efforts should be made to find a solution," remarked Judge Makail during the proceedings. The conflict arose when Future World Design, initially hired as project managers in November 2022, raised concerns about the structural design of the building, which was initially planned to meet seismic Code 3 requirements. However, subsequent evaluations suggested that the building should adhere to Seismic Code 2 standards, given Goroka's proximity to Seismic Zone 2. Upon agreement by the UOG special procurement committee to halt work and initiate a redesign, Future World Design proposed a cost estimate ranging from K4.8 million to K7.5 million for the necessary modifications. However, UOG deemed the cost prohibitive and opted to seek alternative contractors for the redesign work, prompting Future World Design to request arbitration. Discontent with the redesign executed by the university's chosen contractors, Future World Design contested the termination of their contract, leading to the current legal proceedings. The court's decision to mandate arbitration reflects a commitment to resolving the dispute efficiently and amicably. Both parties are now expected to engage in arbitration discussions to address the outstanding issues surrounding the construction project, with the aim of reaching a mutually acceptable resolution. The outcome of these arbitration proceedings will likely have significant implications for the completion of the central administration building project at the University of Goroka, underscoring the importance of constructive dialogue and collaboration in resolving complex contractual disputes. Also read Comments are closed.
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