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Trini supplier sues GuyOil over $80M for breach of contract

Feb 29, 2020 News

A Trinidad company is heading to court, asking for over $80M from the state-owned Guyana Oil Company (GuyOil).
The contract with Commissiong and Company Limited was ended by GuyOil last year after a back a forth over a performance bond.
Commissiong is claiming, through its lawyers Mohabir A. Nandlall and Associates, that it was given a hard time after refusing to pay, when what appeared to be a clear demand for a bribe was made.
According to the Statement of Claim, Commissiong is asking for US$291,055.05 and GYD$23.5M, being the sum due, owing and payable for works done, according to an agreement dated May 24th, 2019.
GuyOil contracted the Trinidad Company for the fabrication and erection of two 10,000 barrel storage tanks for its Providence terminal.
Court documents disclosed that GuyOil in February 2019 invited bids to supply, fabricate and erect two 10,000-barrel storage tanks at Providence.
An agent of the Trinidad Company visited the site and was assured that international bonds would be accepted.
On February 22nd, the contractor submitted a bid and a bond issued by Furness Anchorage General Insurance Company Limited for US$2,500.
On April 25th, GuyOil’s Company Secretary Illisa McTaire-Jones issued a letter of acceptance for the contract price of $110,285,913. The letter asked for a performance security bond for $3,308,577 within 15 days.
The performance security could be either a bank draft or an insurance bond, which was to be valid until the end of the defects liability period. It was assured that with the issuance of the acceptance letter and the furnishing of the performance security, the contract for the works would stand concluded.
On May 24th, a written agreement was signed.
A few days later, Commissiong submitted a tank construction material list to GuyOil and thereafter started buying materials to fabricate the tanks. The contractor was even approached to build a third tank for GuyOil.
The company claimed that in July, it submitted bills for advance payments. But it was instead asked for a bribe. The company refused, and on October 7th, Commissiong was informed that GuyOil would be terminating the contracts.
Commissiong is contending that as GuyOil terminated the contract, it is obligated to pay the supplier.
It also said that that oil company, which operates a number of service stations throughout Guyana, wrongfully terminated the contract and breached conditions , and therefore Commissiong is entitled to punitive damages,.

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