Construction Law 2022

Last Updated June 09, 2022

Uganda

Law and Practice

Author



Kyagaba & Otatiina Advocates (Dentons) was founded by a dynamic, passionate, like-minded and committed team of five partners. In November 2019, the firm became a member of Dentons, the world’s largest law firm. Dentons has more offices than any other firm across the globe. The partners have a combined experience of more than 90 years in advising and representing some of the leading brands in Uganda and across the globe. Currently, the firm has a team of 15 lawyers.

The principal laws regulating the construction industry in Uganda include:

  • The Building Control Act 2013, which establishes the National Building Review Board, a body corporate comprising of members representing various stakeholders in the construction industry. The law also establishes building committees at every district and urban council and stipulates their roles, which include scrutinising and approving building plans, issuing necessary permits and generally ensuring compliance with the law. The law also provides for powers of the building committee and offences such as negligence leading to death and injury on a construction site.
  • The Building Control Regulations 2020 are meant to operationalise the Building Control Act 2013. The regulations make employment of professionals such as architects, surveyors, engineers and health and safety experts mandatory on construction projects and provide for other matters such as practical procedure for application of building permits, necessary documentation, etc.
  • The National Building Code 2019 prescribes matters relating to building standards, structural design, plumbing, electrical installations, mechanical installations, accessibility standards and postal code numbering. The national building code has been issued in the following chapters:
    1. the National Building (Structural Design) Code 2019, which provides the basis of designs, standards for loads, characteristics of structural materials and geotechnical investigations to ensure that buildings perform satisfactorily during their lifetime;
    2. the National Building (Standards for Mechanical Installations in Buildings) Code 2019, which prescribes standards for stairways, ramps, guards and lifts, lighting, ventilation and heating, fire safety and plumbing, etc;
    3. the National Building (Standard for Electrical Installations in Buildings ) Code 2019, which provides standards for electrical installations including design, methods of installations, fundamental requirements for safety, wiring and wiring accessories, to mention but a few;
    4. the National Standards (Accessibility for Persons With Disabilities) Code 2019, which provides for standards that must be complied with by all buildings accessible to persons with disabilities; and
    5. the National Building (Post Code Numbering) Code 2019, which adopts addressing standards that includes a description of different postal and geographical addresses.

Other relevant laws include:

  • the Physical Planning Act 2010, which establishes the National Physical Planning Board, its composition, functions and procedure. The law declares the entire country a planning area and prohibits any person from carrying out a development on land without obtaining permission from the respective Physical Planning Committee;
  • the National Environment Act 2019, which provides for environmental management for sustainable development and makes it a requirement for developers of certain projects (including construction projects) to carry out environmental impact assessments and submit project briefs to the National Environment Management Authority for approval before construction;
  • the Occupational Health and Safety Act 2006, which provides mechanisms for ensuring that workers on construction sites are protected from occupational harm;
  • the Public Procurement and Disposal of Public Assets 2003, which establishes the Public Procurement and Disposal of Public Assets Authority to formulate policies and regulate practices in respect of public procurement and disposal activities. This law is particularly relevant for publicly funded projects;
  • the Contracts Act 2010, which regulates all matters to do with contracts and is the principal legislation that codifies principles of contract law;
  • the Engineers Registration Act Cap 271, which provides for the Engineers Registration Board, its powers and functions, registration of engineers, disciplinary procedures for engineers, etc;
  • the Architects Registration Act Cap 269, which establishes the Architects Registration Board, its powers and functions, registration of architects, disciplinary procedures for architects, etc; and
  • the Surveyors Registration Act Cap 275, which establishes the Surveyors Registration Board, its powers and functions, registration of surveyors, disciplinary procedures, etc.

These laws can be accessed at www.ulii.org.

Standard forms of contract are used in Uganda to conclude construction contracts. FIDIC is becoming the most predominant standard form of contract used in construction projects in Uganda. However, JCT and NEC3 have also gained traction depending on the origin of the contractor or consultant. These standard forms are used mainly in the context of the employer/contractor relationship. The use of standard contracts is not mandatory under the laws of Uganda.

The COVID-19 pandemic significantly affected the construction market in Uganda. Although the president of Uganda expressly stated that construction works should continue during the lockdown, completion of works became difficult due to several restrictions, including movement of workers and closure of many construction material suppliers. Eventually, works on several projects had to stall because of the lockdown, prompting parties to determine whether the lockdown was equivalent to, or the same as, a force majeure event provided for in the construction contract(s). In some instances, delivery of imported construction materials (on time) was almost impossible due to long queues at the border caused by need to undertake a COVID-19 test of each driver entering Uganda from Kenya. This adversely affected the progress of works, leading to the adjustment of completion dates. Almost all construction projects were affected by the lockdown caused by COVID-19.

Ordinarily, construction projects are of a high value, which means that the employer needs to have adequate funds to undertake such a project. Due to the costs involved, the government is the most predominant employer in high-value construction projects. Government includes, but is not limited to, statutory parastatals, different ministries, local governments (administration units of towns and districts), etc. Private investors, either acting alone or through a public-private partnership, are also act as employers in different construction projects.

The most paramount obligation is for the employer to ensure that resources required for completion of the project are allocated properly. This includes mobilisation of resources. The contractor undertakes to complete construction works in accordance with the contract. Under the law, the employer is required to demonstrate to the Building Committee of the area that he or she has engaged the services of professional service providers including an architect, engineer, surveyor, health and safety expert and any other relevant professional service provider, before a building permit is granted.

The relationship between the contractor, the employer and the subcontractors is contractual in nature. Ordinarily, the contractor does not have any relationship with the financiers because he or she is not privy to the financing contract between the financiers and the employer.

The relevant laws and the other laws stated hereinabove also provide obligations of the parties that may not be included in the construction contract. Accordingly, all statutory obligations become applicable unless vitiated or modified by the construction contract, if the law allows it.

Most of the contractors in a construction project are private companies. The contractor is required to undertake and complete works within a given period and is entitled to payment as agreed in the construction contract. The subcontractor is appointed by contractor under a subcontract to undertake part of the works. The relationship between the employer, the contractor and the subcontractors is contractual in nature. Ordinarily, the contractor does not have any relationship with the financiers because he or she is not privy to the contract between the financiers and the employer. In some circumstances, the terms of financing create a relationship between employer and (sub) contractor, where the latter is specifically mentioned as the intended beneficiary of the funds.

Any company that has the required technical capacity to act as subcontractor may be engaged as a subcontractor on a construction project. The subcontractor is required to execute some of the works pursuant to a subcontract between subcontractor and contractor. Therefore, unless expressly indicated otherwise in the contract, a subcontractor does not have a direct relationship with the employer/client. All duties and obligations are owed to the contractor. The relationship is described in 2.2 The Contractor.

Financing for projects usually takes the form of loans, venture capital, grants, etc. Most construction projects in Uganda are financed by financial institutions. Ordinarily, where it is a government project, the funding is usually obtained from either IMF, World Bank, Africa Development Bank or other international lenders. In some instances, where the contractor is a Chinese entity, the financier is a Chinese financial institution such as the Export-Import Bank of China. The rights and obligations of financiers are generally contained in the loan agreements entered into with the borrower/employer. The obvious obligation is to provide the funding in accordance with the terms of the loan agreement. As the financing is extended to the project owner, the contractual relationship exists between the financiers and the employer.

In most cases, the construction contract requires the contractor to obtain a performance bond/guarantee from a financial institution in favour of the employer as security for the due performance of the contractor’s obligations stipulated in the contract. The employer is entitled to use the security to recover the sums therein in the event of default by the contractor of the obligations in the bond/guarantee.

The scope of work depends on the nature of the project. Standard form contracts usually provide the general scope of work, which is then modified to suit project requirements. The scope of works in a construction contract must conform to and comply with the standards prescribed in the Building Control Act 2013, the Building Control Regulations 2020 and the other laws listed in 1.1 Governing Law.

Variations are subject to terms and conditions in the construction contract. Standard forms of contract prescribe how scope and price for variations is determined. There are two common approaches to pricing valuations: valuation using figures in the contract sum and valuation using a separate price schedule.

Where the variation introduces work that is of a similar nature to that in the contract bills and is to be executed in similar conditions, the variation clause will normally stipulate that changes are valued using pricing information that directly relates to the build-up of the contract sum, for example using the rates in the Bill of Quantities.

The variation clause may also stipulate that if the works introduced are totally different from those contained in the contract bills, the parties may agree to new rates entirely and this is reduced into a variation order. Generally, scope and pricing of variations depends on the contract and how a variation is determined depends on the terms of the construction contract and not the party requesting for the variation.

Generally, the law requires an architect to prepare the architectural designs, while an engineer is required to prepare the engineering designs of a building or a part thereof, before a building permit is granted by the building committee. The two may be assigned other responsibilities in accordance with the terms of the construction contract.

The different possible divisions of work depend on the nature of project and applicable law. Examples from various laws are listed below:

An employer is only allowed to design a single-storey dwelling or poultry/livestock house that does not exceed more than 30 square metres in floor area. Anything beyond the above must be done by either an architect and/or engineer.

The National Building Review Board is required to ensure that the design and construction of buildings and utilities to which the public has access cater for persons with disabilities. This means that building permits cannot be issued where designs and plans do not indicate access for persons with disabilities.

An engineer is required to design excavation works exceeding 2 metres below the original ground level or in situations where special geotechnical considerations exist. The assumption is that an employer can design excavation works as long as the excavation works are less than 2 metres.

The Uganda Electricity Regulatory Authority (ERA) issues or authorises issuance of graphical symbols to be used in all drawings, wiring plans and other technical designs for electrical installation of buildings. Therefore, an employer and contractor cannot prepare technical designs for electrical installations not issued or authorised by ERA.

Interestingly, the law allows the employer to provide data for dimensioning of each system where the design is not prepared in detail by the designer.

The National Information Technology Authority Information is responsible for design of relevant ICT infrastructure in accordance with the National Information Technology Authority Act 2009. There, either the employer or contractor must apply to NITA for approval of design of ICT infrastructure. 

The responsibilities of each party are stipulated in the contract.

Upon determining that a specific project is to be undertaken, the employer, alongside other professionals, determines its requirements and budget. Then, a project designer or architect is engaged by the employer to prepare the architectural plans, while the engineer is engaged to prepare the engineering designs.

Generally, the contractor is responsible for planning, leading, executing, supervising and inspecting the works. The responsibility extends from the commencement to the completion of the project notwithstanding the scope. The subcontractor is answerable to the contractor except where the subcontractor was engaged or hired by the employer.

However, some of the roles of other parties to the construction process are prescribed by law. We highlight some of them below:

  • the architect and the engineer are required to supervise the construction of the building;
  • the structural engineer prepares the structural design and plans for a multi-storeyed building;
  • a geotechnical laboratory accredited by the ministry responsible for works and endorsed by a registered geotechnical engineer prepares the geotechnical report;
  • where there are excavations, a design of the soil support system and protection of the adjacent structures must be endorsed by a registered geotechnical or structural engineer;
  • a surveyor is engaged to provide surveying services such as processing boundary reports;
  • a health and safety expert is engaged to ensure that risks on site are controlled and minimised;
  • a consultant is hired to report on whether the standard of durability and stability of the building to be constructed from the materials or by methods not provided for in the law are equal to the standards imposed by the law.

Generally, each party that has a role to play during the lifespan of a construction project has specific responsibilities as far as the status of the construction site is concerned. The law makes provision for the following responsibilities: 

  • the employer or his/her representative must notify the Building Committee before commencement of building operations, specifying the date on which the building operation shall commence;
  • the employer is required to erect and retain a sign board indicating what the project is, together with the name, contact information and registration numbers (where applicable), etc for the duration of the construction until work is complete;
  • the contractor is responsible for overall site safety because of the nature of works to be undertaken that create the most considerable safety risks on a site;
  • the architect and engineer are responsible for overseeing site operations;
  • the Building Committee or Building Control officer must inspect and approve any further stage in construction where it is/was a condition in the building permit.

The Building Control Act 2013 requires every person intending to undertake construction works to obtain a building permit as a prerequisite before construction. The application for a building permit is made to the building committee of the area in which the applicant intends to build and must be accompanied by, among other things, the name, registration number and a copy of the practising certificate of the architect or his or her signature, and official stamp of the Uganda Society of Architects. In case of an engineer, the application must be accompanied by a certificate of good structural practice.

Additionally, the application must be accompanied by building plans and any other necessary documents. In the event of multi-storied buildings, there is need for a structural design and plans stamped by a structural engineer and a geotechnical report.

Upon completion of the construction, the project owner is required to obtain an occupation permit from the Building Committee before putting the building to use. The essence of an occupational permit is to confirm that the building was constructed in accordance with the approved drawings and designs.

Ordinarily, the employer is responsible for maintenance works and may engage third parties to undertake maintenance works. Maintenance works generally entail repairs that may include painting, redecoration or replacement of damaged roof coverings, etc.

The law prescribes compulsory maintenance works in some situations. Compulsory maintenance occurs where the Building Committee directs an owner to carry out repairs or painting (within such time as may be specified in the notice), in respect of any building that has in the committee’s opinion fallen into a state of disrepair or neglect, and constitutes a safety or health hazard to the public. Maintenance works may also be carried for aesthetic purposes.

The law allows parties to enter into a contract for maintenance works other those prescribed by law.

Standard form contracts stipulate the roles of each party, including third parties. The employer generally issues all instructions either directly or indirectly through third parties. Ordinarily, in Uganda the other functions in the construction process are generally instructed by the employer to all parties involved in the process. 

Most construction contracts include a clause requiring testing and inspection of the works for purposes of ensuring that construction has been done in accordance with the design. Testing may happen during construction (stage testing) or upon final completion. 

Where the building permit requires stage tests and inspections, the Building Committee or Building Control officer is required to approve completed works before the construction proceeds to the next stage. The owner is required to request for inspection by filling out a prescribed form.

With regard to final completion, upon the completion of a building, the owner of the building must notify the Building Committee of the practical completion and apply to the Building Committee for an occupation permit.

The Building Committee is required to examine the building and issue an occupation permit or refuse to issue the occupation permit, giving reasons in writing within 14 days after receipt of notification of completion of a building and receipt of an application for an occupation permit.

Under the law, the Building Committee or Building Control Officer is responsible for testing and/or inspecting completed works.

Upon completion of the works, the contractor applies to the architect or employer representative for a final practical completion certificate. If, in the opinion of the architect, the works have been completed in accordance with the design and contract drawings, the architect issues the certificate. The certificate confirms that the works have been completed and makes provision for other matters such as final payments. Upon issuance of this certificate of practical completion, the works are handed over to the employer and the defects liability period commences. Defects, shrinkages and other faults that appear within this period are noted by the architect or engineer and brought to the attention of the contractor, requiring him to remedy the same. The contractor is required to rectify the defects at his or her own cost and without increase in the contract sum. Upon completion of remedying the defects, the employer takes over the site.

Upon takeover, the owner is required to apply for an occupation permit. The Building Committee is required to examine the building and/or works and issue an occupation permit, or refuse to issue the occupation permit, giving reasons in writing within 14 days of receipt of the application for the occupation permit.

The parties to a construction contract usually agree upon the period of time within which the contractor can be held liable for defects in works, commonly known as the Defects Notification/Liability period.

Remedies available to the employer in case of a defect in works or design include rectification of the defect by the contractor or claim for damages (either under contract or common law). However, upon takeover of the site or building by employer, the only remedy available is a claim for breach of contract.

The law authorises a Building Control Officer to inspect buildings or works at regular intervals to detect any defects in the buildings. However, there is no statutory period within which the contractor has to be notified of the defect(s).

In Uganda, two methods are used in establishing contract price in general, that is, fixed-price or cost-reimbursable.

A fixed-price contract can be a lump sum or unit price contract and entails payment of a single price that is agreed upon by parties to construction contract before commencement of works. The fixed-price contract is generally not subject to any adjustment unless there are changes to the scope of work that are agreed upon by both parties.

A cost-reimbursable contract guarantees that the owner reimburses the contractor for actual construction costs incurred plus an additional fee upon completion of the works. This is preferred for projects where the nature or scope of work cannot be properly determined at the outset and risks such as emergencies, alterations, repair, etc are high.

The remeasurement pricing model is not as common as the other two models in Uganda. Milestone payments are generally used and acceptable in Uganda. Upon reaching a milestone, a contractor is entitled to a certificate from an architect entitling them to invoice the employer for payment of sums indicated in the invoice.

Uganda does not have a statutory payment security regime. However, parties to construction contracts have devised measures to manage late or non-payment. These measures include stage payments, where the contractor is paid upon completion of agreed-upon stage or work, and periodic payments, where the payment is based upon the value of work executed by the contractor in accordance with dates stipulated in the contract.

In some cases of late or non-payment, contractors have resorted to use of adjudication to expeditiously resolve any differences caused by late or non-payment.

Other measures include suspension of works and repudiation of contracts without prejudice to the contractor’s right to sue for damages, if it exists under the contract.

Advance payments, delayed payments and interim payments are generally used in construction contracts as another way of managing or mitigating damage or loss caused by late or non-payment by employer.

Ordinarily, an invoice is a formal demand for payment issued by the contractor against completed works or construction materials used on a project. The contractor is entitled to issue an invoice detailing work done during the period stated in the invoice. The invoice shows amounts due at the given date, excluding retention money.

Planning starts with the employer preparing a scheme for the procurement of the works (in accordance with time and budget constraints capable of being fulfilled). The contractor then carries out a critical path analysis to enable the parties to identify which activities will be determined by preceding or concurrent activities. The critical path shows the contractor’s proposed manner and sequence of executing the works and enables parties to focus on key areas where delays would hamper progress of works.

The programme depends on the nature of the project and is usually prepared by the contractor. It details the order in which the contractor will execute the each activity under the contract from start to finish. It is prepared from information contained in the contract documents and also functions as a brief for the site workforce in categorisation of activities, showing resource requirements and determining the duration of each section of construction. The programme is submitted to the engineer, who scrutinises and either approves or rejects it.

The employer may review the programme, although the approval is done through the employer’s representative (the architect or engineer).

The employer, the architect or engineer usually safeguard the programme by monitoring progress of the works. Where actual progress falls behind the programme (known as ‘delays’), the employer (or its representative) will instruct the contractor to submit a revised programme showing how the contractor plans to expedite progress and completion works in accordance with the milestones in the contract, if any.

Milestone, milestone payments and/or certificates are used and recognised under Ugandan law.

When delays happen on construction projects, the contractor is required to apply for extension of time within which to complete the works (the engineer or architect may either grant or deny the extension of time application). The contractor prepares a revised programme that indicates corrective measures to mitigate the effects of delays.

The contractor is under obligation to ensure that the works are completed within the revised programme and the employer/engineer is required to accept the application for extension of time, especially where the employer is/was partially responsible for the delay (referred to as concurrent delay). An employer will not be entitled to liquidated damages if its actions or omissions were responsible for the delays.

The employer is entitled to liquidated damages for the delay(s). The amount of liquidated damages is the sum payable in the event that the works are delayed and are not a penalty. Liquidated damages exclude other damages (which will be) suffered as result of the delays.

Subject to the wording of the liquidated damages clause, the employer may bring a claim for breach of contract, although ordinarily courts have held that employer is only entitled to liquidated damages and cannot claim damages as a result of the delay.

The contractor notifies the engineer or project manager, in writing, that a delay event might occur or has happened, thereby affecting the programme and/or completion date. Accordingly, the contractor requests and gives reasons justifying the request for extension of time, which is either accepted or rejected.

Force majeure includes circumstances such as war, pandemics, civil unrest, earthquakes, floods, plagues, natural disasters, etc. The law does not define force majeure and therefore parties are at liberty to contractually limit or exclude certain circumstances from being qualified as force majeure. 

Unforeseen circumstances are not defined or prescribed by law but are contractually agreed upon by the parties. Some standard forms (other than FIDIC) do not expressly deal with or define unforeseen circumstances, which leaves the issue open to interpretation either by adjudicator, arbitrator or the court, depending on dispute clauses in the contract.

Courts in Uganda have reiterated the principle that they will give the contract an interpretation that is consistent with the reasonable expectations of the parties, reflects and promotes the purpose of the contract. Therefore, there is no mandatory law provision that provides liabilities that cannot contractually be excluded.

The concepts of wilful misconduct and gross negligence do exist in Uganda. Section 45(1) of the Building Control Act 2013 stipulates that a person whose negligence, omission or commission causes or leads to the occurrence of an accident or death on a construction site, destruction of property or injury commits an offence. Section 45(2) of the same law provides that the above-mentioned activities include breach of contract, professional negligence, failure to take out insurance, failure to comply with stipulated building procedures and standards, and failure to comply with all other applicable laws.

Additionally, the laws governing professional service providers, such as the Surveyors Registration Act Cap 275, provide that misconduct and/or gross negligence in the conduct of professional duties constitutes professional misconduct and the professional service provider may be liable to disciplinary action.

Uganda does not have a law relating to clauses limiting or excluding liability similar to the Unfair Contract Terms Act 1977 of the United Kingdom. Therefore, parties can contractually limit their liability and courts will enforce such a provision in the contract.

Parties usually agree to mutual waiver of consequential loss because these can be unpredictable and have a significant adverse impact on the project if not limited. As a result of having a total cap on liability, the total exposure of the contractor is limited. The maximum liability of an architect may also be limited. Similarly, both parties may agree upon an indemnity insurance limit. Losses arising from delays can also be limited by the contractor.

Indemnities are widely used to limit risk in Uganda. Typical subjects for indemnification include insurance, death and personal injury negligence, legal costs and fees, etc.

Common guarantees used to limit risk in Uganda include construction bonds (performance bonds, payment bond/guarantee, bid bonds) and advance payment guarantee, etc.

Construction bonds are issued by a bank or insurance company on behalf of the contractor for the completion of the project. The issuance of construction bonds is governed by laws that regulate the business operations of banks and insurance companies.

Where the contractor seeks advance payment for purposes of meeting (procurement) costs before construction begins, that employer may require the contractor to obtain a bond to secure the payment in case of default by the contractor. This type of bond is also known as an advance payment guarantee/bond. 

The following insurances are taken out by parties to construction contracts in Uganda:

  • professional indemnity insurance, which is meant to cushion professional service providers in the event of liability to the employer;
  • workers compensation insurance, which is taken out by the contractor to cover injuries or death that may occur to workers during the construction process;
  • other forms of insurance include contractor’s all-risks (CAR) insurance and third-party insurance, which protects the contractor against claims of personal injury or property damage to third parties.

Insolvency clauses enable the employer to repudiate the construction contract because insolvency is likely to have a significant impact on the completion of a project. The insolvency of a party substantially limits the rights of an aggrieved party to obtain a remedy against an insolvent party. For instance, if a party to a construction contract has been placed under administration, in effect a moratorium is created insulating such a company from legal proceedings. The wording of insolvency clauses in construction contracts are usually the same and applicable to either party.

With increased adoption of standard forms, it is becoming common practice for parties to share risk in relation to insolvency, political risks, indemnification and specific force majeure risks. Parties arrange for risk-sharing through use of standard form contracts, improved communication, making provision for various dispute resolution mechanisms such as dispute review boards and periodic review of issues that may arise between contractors and subcontractors.

Construction contracts in Uganda usually specify which personnel are considered to be the contractor’s personnel and the employer’s personnel. The contract specifies each party’s role with regard to hiring, management and termination of the personnel from further involvement in the project. The employer’s personnel include the engineer and all other staff, labour and other employees of the engineer and of the employer.

The contractor’s personnel entails all personnel used or engaged by the contractor on site. 

Unless specifically prohibited, a contractor is entitled to engage subcontractors. Some contracts are specific with regard to the percentage of works that may be subcontracted. In a few scenarios, the employer appoints subcontractors to undertake works that were not within the scope of works to be performed by the contractor. The relevant laws do not impose any limits on subcontracting.

With the general use of standard forms of contract, especially FIDIC, the contractor retains the intellectual property rights in the Contractor's Documents and other design documents made by (or on behalf of) the contractor. The contractor is deemed to give to the employer a non-terminable, transferable, non-exclusive, royalty-free licence to copy, use and communicate the Contractor's Documents, including making and using modifications of them.

The most common remedy is damages. Other remedies include an action for an agreed sum, specific performance, injunction and a quantum meruit claim, etc. Some construction contracts also make provision for repudiation of the contract in extreme cases such as insolvency, etc.

Through the continued use of standard forms, it has become common practice for parties to limit the remedies available to either party. Remedies available to parties may be contractually limited through expressly waiving specific claims for consequential loss or damages. Other modes of limiting remedies include "no damage for delay" clauses, capping of delay damages and liquidated damages.

The parties expressly agree in the construction contract that specific remedies are unavailable or are capped. This gives the contractor certainty on his or her profit margins.

Sole remedy clauses are used in construction contracts in Uganda. The most common sole remedy is liquidated damages. The High Court of Uganda has held on several occasions that “when interpreting a contract, the court seeks out the parties’ common intention, and is not bound by the parties’ ostensible, or even preferred, characterisation". Therefore, sole remedy clauses can be enforced in the same manner as a decree of the court.

Common law and equitable damages are excluded from liability in construction contracts that have a liquidated damages clause. Uganda courts have opined that limitation of liability clauses are enforceable in respect of damages, although the damages must be clearly stipulated in the contract.

Retention and suspension rights are not contractually excluded in Uganda. Parties to a construction agreement are at liberty to include clauses on retention and suspension rights, which are enforceable under the law.

The High Court of Uganda has original and unlimited jurisdiction to adjudicate any kinds of construction disputes in Uganda. Any party dissatisfied with the decision of the High Court has the right to appeal to higher courts until the final court, the Supreme Court. The High Court has limited jurisdiction in arbitration, that is, usually the grant of interim reliefs, etc.

Centre for Arbitration & Dispute Resolution (CADER) a statutory body, the International Centre for Arbitration & Mediation in Kampala (ICAMEK) and Praxis Conflict Centre (both private independent bodies) are all competent to adjudicate construction disputes.

Other professional bodies, such as the Uganda Institution of Professional Engineers and the Uganda Law Society, are also competent and often relied upon, especially with regard to adjudication.

Arbitration is the primary alternative dispute resolution (ADR) mechanism used in Uganda to resolve disputes arising from construction contracts. While mediation and conciliation are also available modes of dispute resolution, they are rarely explored with regard to construction disputes. ADR includes the Arbitration and Conciliation Act Cap 4, the Civil Procedure Rules and Judicature Mediation Rules 2013.

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Kyagaba & Otatiina Advocates (Dentons) was founded by a dynamic, passionate, like-minded and committed team of five partners. In November 2019, the firm became a member of Dentons, the world’s largest law firm. Dentons has more offices than any other firm across the globe. The partners have a combined experience of more than 90 years in advising and representing some of the leading brands in Uganda and across the globe. Currently, the firm has a team of 15 lawyers.

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