ZENITH STEEL FABRICATORS LIMITED V. CONTINENTAL BUILDERS LIMITED & ELTEX (EPZ) LIMITED

JUDGMENT OF THE COURT

What is the true meaning of a nominated Sub-contractor in the building construction industry? Who between the Employer and the main Contractor is bound to pay the sub-contractor? Was there privity of contract between the parties? These and other peripheral issues arise for our consideration in this appeal.

Twenty four years ago in 1994, the 2^nd respondent, Eltex (EPZ) Ltd (Employer), commenced the construction of a garment spinning factory (the project) at the EPZ processing zone in Athi River. The main contractor for the project was the 1^st respondent, Continental Builders Ltd (Contractor). But there was no formal contract signed between the two. On 12^th July, 1994, the appellant (Sub contractor) was appointed by the contractor as the sub-contractor for steel and roofing works at the agreed sum of Sh.20,500,000. Again there was no formal contract signed between the two. From letters exchanged between them, payments on the project were made to the contractor by the…