Contractors face liquidated damages for delayed, shoddy govt works
Kumumanya said persistent delays and repeated excuses have resulted in significant financial losses.
The Permanent Secretary at the Ministry of Local Government, Ben Kumumanya, addresses contractors at the ministry's offices in Kampala on Wednesday, July 8, 2026. (Photo by Isaac Nuwagaba)
_________________
The government has taken a tougher stance against road contractors who delay projects or deliver substandard work in a bid to ensure both parties honour the contractual obligations agreed upon during the signing of memoranda of understanding and project contracts.
To address delays and abandoned road, school, health centre and water projects, the Ministry of Local Government has resolved to compel both local and foreign contractors to pay liquidated damages if they fail to complete work within the stipulated contractual period, permanent secretary Ben Kumumanya has said.
Addressing contractors during the signing of contracts for the rehabilitation of district and community access roads under the Rural Development and Food Security in Northern Uganda (RUDSEC) project in Kampala on July 8, 2026, Kumumanya said persistent delays and repeated excuses have resulted in significant financial losses.
“No contractual variations until the contractual work is executed because your liquidity potential should be enough to carry on smoothly until you finish the project. The pre-bid meetings should be able to sort out all the bid prices to maintain standards,” he said.
Kumumanya noted that nearly half of the country's 67 major road projects, valued at more than sh10 trillion, are either behind schedule or suspended.
The Permanent Secretary at the Ministry of Local Government, Ben Kumumanya, addresses contractors during a meeting in the ministry's boardroom in Kampala on Wednesday, July 8, 2026. (Photo by Isaac Nuwagaba)
The Permanent Secretary at the Ministry of Local Government, Ben Kumumanya, hands over a signed contractors' agreement at the ministry's offices in Kampala on Wednesday, July 8, 2026. (Photo by Isaac Nuwagaba)
Last week, President Yoweri Kaguta Museveni ordered investigations into senior Ministry of Works officials, including permanent secretary Waiswa Bageya, over allegations of corruption and embezzlement linked to the 23.7-kilometre Busega-Mpigi Expressway project.
According to Kumumanya, the highway project had previously experienced delays due to redesigns and funding shortfalls.
“We have agreed that as a matter of check and assessment, we shall charge liquidated damages on contractors who do not observe all contractual obligations.”
“The government demands that you deliver quality infrastructure within agreed contractual timelines and strictly comply with the approved specifications and construction standards issued from the time of signing agreements until projects are completed,” Kumumanya insisted.
Contractors speak out
“As a contractor, we understand the government's position on liquidating damages for delays and shoddy work. However, we would like to highlight that our company, Nabet Construction Ltd, has faced numerous challenges, including unforeseen site conditions and delayed payments, which have contributed to the delays.
We're willing to work with the government to find a mutually beneficial solution. We believe that a fair assessment of the situation would reveal that we're not entirely at fault. We're open to negotiations and hope the government will consider our circumstances,” Betty Namanya, the company director, said.
“Liquidating damages should be a last resort. Let's work together to find solutions that benefit both parties and ensure project completion,” Mirembe observed.
Govt to construct 139km of access roads in nine districts
Kumumanya said the government is set to construct 139 kilometres of access roads in nine districts across the Teso, Acholi and Lango sub-regions using a $28 million (about 102.7 billion) grant from the Federal Republic of Germany and KfW Development Bank.
The initiative forms part of the Rural Development and Food Security in Northern Uganda (RUDSEC) programme. It aims to improve road transport and market infrastructure to boost household incomes and food security.
“This grant shall help Uganda unlock agricultural production and marketing potential in northern Uganda and increase the income of smallholder farmers to supplement the efforts by the Parish Development Model (PDM) in those areas,” he emphasised.
RUDSEC project coordinator Eng. Paul Kasule Mukasa said the beneficiary districts are Lamwo, Pader, Agago, Lira, Dokolo, Oyam, Soroti, Serere and Kaberamaido.
“The project will also rehabilitate markets like Amach in Lira and Minakulu in Oyam districts. Construction of roads include a 15 km Kalongo – Lomoi road in Agago district, Corner Ogwec – Tenten road in Lamwo district, Puranga – Ogonyo – Achola stream road in Pader, Agweng – Barlonyo and Akano – Lwala roads in Lira, Alwimac – Awiri – Asalim road in Dokolo, Ochero – Bugoi road in Kaberamaido, Atirir – Orungo border road in Soroti and Serere Upper Shops – Akoboi and Kamod – Otimong – Akobi in Serere district,” he confirmed.
The five-year project will also see more than 1,000 kilometres of roads maintained and 18 markets constructed to strengthen agricultural marketing by connecting producers with buyers.