Patrick Bitature ordered to clear Shs954 million debt after failed construction projects dispute

• The High Court ruled that Patrick Bitature owes Finicon $256,136.17 for consultancy services provided on two 2012 projects.

• The dispute involved architectural and project management work for a hotel and the remodelling of Bitature’s Kololo residence.

• Justice Stephen Mubiru found that Finicon completed significant stages of both projects and rejected Bitature’s defence that the contracts were unclear.

• The court awarded Finicon the outstanding amount, nine percent annual interest and legal costs.

The High Court Commercial Division has ordered businessman Patrick Bitature to pay Finicon (U) Limited $256,136.17 (about Shs954 million) in unpaid consultancy fees linked to two projects contracted in 2012.

Justice Stephen Mubiru issued the ruling on August 18, 2026, ending a dispute over architectural, engineering and project management services provided by Finicon.

The award excludes value-added tax (VAT).

The dispute arose from two agreements signed between Finicon and Bitature. The first, dated July 6, 2012, involved professional consultancy services for a high-end boutique hotel on Summit View Road in Kololo.

The second agreement, signed on August 24, 2012, covered the remodelling of Bitature’s residence on Plot 9 Malcolm-X Road, Kololo.

The hotel project was estimated to cost between $5 million and $6 million, while the residential project involved redesigning and improving Bitature’s home.

Under the hotel agreement, Finicon was entitled to a professional fee of five percent of the total construction cost. The parties agreed to use $6 million as the reference amount for calculating the fee unless the final construction cost was lower.

The residential agreement also provided for a five percent consultancy fee based on the final construction cost.

Finicon told court that it had completed major parts of the assignments, including feasibility studies, architectural designs, technical drawings, tender preparation and obtaining approvals from the National Environment Management Authority (NEMA) and Kampala Capital City Authority (KCCA).

The company said the hotel project reached the stage where bills of quantities were prepared. Bills of quantities are detailed documents showing the materials, labour and costs required for a construction project.

The residential project reached the tender stage, where contractors could submit bids for the work.

Finicon argued that it had completed about 76 percent of the contracted services.

The company initially demanded $228,000 under the hotel agreement and $63,136.20 under the residential agreement, bringing the total claim to $291,136.20.

It told court that Bitature had paid only $23,538 by October 28, 2014, leaving an outstanding balance of $267,598.20, excluding VAT.

Bitature, the founder and chairman of Simba Group of Companies, disputed the claim. His lawyers argued that the projects had not progressed enough to justify the amount demanded.

They also argued that the contracts were unclear because the final construction costs had not been determined.

Bitature maintained that the $23,538 payment was agreed as full and final settlement for the work completed.

His lawyers further questioned Finicon’s claim, arguing that the hotel project’s estimated value differed from figures submitted to authorities.

They also raised concerns about fraud allegations, the relationship between the parties and the qualifications of some professionals involved in the work.

However, Justice Mubiru rejected these arguments, saying the allegations of fraud and lack of a direct contractual relationship had not been included in the original court documents and were only raised during the hearing.

The judge also dismissed Bitature’s argument that the contracts were too unclear to enforce.

He ruled that the agreements contained a method for calculating the fees even if the final construction costs changed.

“None of the two contracts suffers from any ambiguity that would render it unenforceable,” Justice Mubiru said.

The court found that Finicon had completed the hotel project up to Stage G, which involves preparing bills of quantities, and the residential project up to Stage H, which involves inviting contractors to bid.

After reviewing the evidence, the court ruled that Finicon had earned $216,000 from the hotel project and $63,136.17 from the residential project.

This brought the total approved consultancy fees to $279,136.17.

The court rejected Bitature’s argument that the $23,538 payment settled the entire debt, saying there was no clear agreement showing that Finicon accepted it as final payment.

Justice Mubiru also noted inconsistencies in Bitature’s explanation of the payment, which he described at different times as instalments and a lump sum.

Finicon had also sought damages for delayed payment and alleged damage to its reputation.

The court declined to award additional damages, ruling that the unpaid amount and interest were sufficient compensation.

The judge also rejected punitive damages, saying contract disputes are meant to enforce agreements rather than punish parties.

“The law of contract remedies are focused on enforcing the parties’ agreed obligations rather than penalising wrongdoing,” the judgment stated.

The court also ruled that awarding damages for reputational loss would amount to paying compensation twice for the same failure to settle the debt.

Justice Mubiru awarded Finicon the costs of the case, applying the principle that the losing party normally pays the successful party’s legal costs.

Bitature was ordered to pay $256,136.17, about Shs954.1 million, excluding VAT.

The amount will attract nine percent annual interest from May 20, 2014, when the payment became due, until it is fully paid.

Finicon was represented by M/s Blair & Co. Advocates, while Bitature was represented by ENSafrica Advocates.