Exactly!That's not a profit!

hold your horses mr...

But, the contractor completed the road project and spent money and had to be paid for the works done…total payments - expenses = profit/loss

What do you know @alma1? The road was indeed built...at a cost!!

Uuuuuuuiiii! Kagizzard tumalizie bwana. The way it is going I can only see a profit coming from the courts where a case is filed, Attorney General does a poor job defending, GOK is made to pay and some lawyers and possibly judges buy a house in Kitisuru with their new found wealth.

I know a young state lawyer who's very wealthy from such. He defends GoK shoddily, loses the case, earns his cut

…The first week after the suspension of works nothing happens. The second week, nothing. The third week, something happens. A call is made to the contractor from the ministry and a meeting is arranged for the following day. The meeting is branded as urgent. The following day the contractor gathers his contractual arsenal and enough artillery and steps into the ministry’s main board room for the meeting at 1400 hours. Inside the board room, he finds about ten people seated. Some of them are farmiliar and others are not. The contractor is shown where to sit. Some little waiting, the chairman of the meeting joins the panel and the meeting kicks off. After a formal introduction, the ministry lays its demands on the table, after accusing the contractor of abandoning the works. The contractor argues that he has not abandoned the works, but rather suspended it. The contractor says he has worked for four months and three payment valuations amounting to kshs 53m have not been paid, variations amounting to kshs 56m have not been approved despite the works having been executed, no COW to document the site conditions and the report on the progress of works, no RE to supervise the works and giving directions where challenges arise. The chairman is very amazed at what he is hearing from the contractor as this has turned out to be a breach of the contract that the ministry entered into with the contractor by the ministry. Further the contractor says that as the works remains suspended, the idle labour, machinery and plant and remobilization will have to be paid for by the ministry as part of the extended preliminary and general items. Also, the interest accrued on the three valuations whose total value is kshs 53m has to be paid. The chairman confirms that the several previous reports that he has seen and read have indicated that some moneys have been paid for by the ministry for this project, but incidentally nobody in that panel can explain how the money has been paid yet the contractor has not received anything!! After a lot of deliberations, the contractor completely declines to go back to site and carry on with the works until the payment issue is sorted by the ministry. The meeting ends in a stale mate and the chairman promises to call another meeting in the cause of the week.
…As the works remains suspended for the fourth week a call is made to the contractor on a Thursday from the most unusual quarters. The voice in that call is one that the MD has heard before lastly in Pretoria, South Africa. They arrange for a meeting the following day, not in the ministry offices, but in Windsor hotel where the project evaluators previously made the MD’s forehead run wet with beads of thin sweat. As the contractor turns the lock and pushes the door into the meeting room at 10:00am, he finds five men sitting around an oval shaped table with their eyes all trained on him…They are all familiar faces, the first three were the “outsiders” who do not work in the ministry, and the other two are senior ministry officials. The contractor takes his seat. After a brief un-necessary introduction the bossy gentleman from the unique trio starts off by urging the contractor to be considerate and not to bite the hand that feeds him. The contractor retorts that it is his wish to do the right thing, but as a farmer they are breaking his hands. Everybody laughs sarcastically.
The bossy gentleman looks at his close companions and then the ministry officials and then the contractor. He throws his right hand inside the left hand pocket of his deep blue coat and draws out a small brown envelope which he places on the table. Again he looks at the other men and the ministry officials before shifting his gaze to the contractor. He picks the envelope, opens it and takes out three cheques. He looks at them cheques, looks at the four men and finally looks at the contractor, and holding the full unfolded cheques, he asks the contractor, “How much?” The contractor looks at the five men and the cheques and then asks the bossy man, “You don’t seem to have been satisfied with what you have been treated to so far?” The man retorts, “you know what chief, the teeth have multiplied and become much longer. Besides, the berries have increased in number and sizes and we believe there should be a corresponding increase in input for attainment of the same level of satisfaction. So how much?”
After a brief negotiation, they settle at kshs 2m which the contractor promises to deliver the following day, upon which he would be given the cheques. The following day, the contractor in the same room, the same five people, places a bulging black polythene paper on the oval table and tells the bossy man to count. After saying no need, the man hands the brown envelope to the contractor and the contractor confirms the presence of the three cheques. After a brief exchange the contractor agrees to write to the ministry to confirm that he would remobolise in one weeks time. As the contractor is leaving the meeting room, he decides to open the envelope and take out the cheques. The first cheque is for an amount of kshs 20m dated four months before the present date, the second cheque is in the amount of kshs 18m is dated three months before the present date and the third cheque in the amount ksh 15m is dated two months before the present date. The contractor frowns and curses those "sons of bitches" for taking him through the thin. Even after receiving the cheques worth kshs 53m, the contractors financial problems/woes are far from over…

That is a lot of money the contractor has received. Why would the contractor still be in problems at least on this job?

@limanika...the guy who is actually facing tribulations here is the contractor. Sadly, the tribulations are coming from the taxpayers themselves.

Woooiiii!! Poor contractor.