According to Punch on Thursday, November 21, 2024, the Federal Government has formally terminated its N740 billion road contract with Julius Berger Plc for the construction of the Abuja-Kaduna-Zaria-Kano expressway, citing differences over pricing, scope, and delays.CONTINUE FULL READING>>>>>
The termination, conveyed through a letter signed by the Director of Legal Services, Federal Ministry of Works, C.O. Assam, invoked Clause 63 of the Standard Conditions of Contract for Road Works, 1999 edition. According to the Ministry, the contractor’s refusal to remobilize to the project site despite cost adjustments and repeated negotiations necessitated this action.
Initially, the contract, scoped for 328.4 kilometers, was reviewed by independent consultants who fixed the sum at N710.8 billion. Subsequently, the Federal Executive Council (FEC) approved an upward revision to N740.8 billion to accommodate rising costs. However, Julius Berger reportedly rejected the reviewed terms and sought further modifications, which the Ministry deemed unacceptable.
The Minister of Works, David Umahi, highlighted the contractor’s alleged uncooperative behavior, including the unilateral revision of approved work items and the use of “delay tactics,” as factors that stalled the project. These actions led the government to reassess its engagement, prioritizing project continuity and accountability.
The Ministry stated, “The Honourable Minister graciously granted an upward review of unit rates on basic work items, which formed the basis of FEC approval. Despite this, the contractor rescinded acceptance, citing astronomical material price increases.”
In line with Clause 63, the Ministry has directed immediate site takeover. Engineers will conduct joint measurements of completed work to ensure a smooth transition for subsequent contractors.CONTINUE FULL READING>>>>>
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