From Isaac Anumihe, Abuja
The federal government has finally terminated the contract with Julius Berger Nigeria Plc for Section I (127 km), Section II (73.4 km), and Section III (128 km), which was rescoped and reviewed to N740,797,204,713.25.
Section I (127 km), Section II (73.4 km), and Section III (128 km) cover the Abuja-Kaduna-Zaria-Kano road.
Earlier, the federal government had served it with a seven-day ultimatum to accept the reviewed contract sum, or the contract would be terminated.
Speaking when the new Managing Director of Julius Berger Plc, Dr Pier Lubasch, accompanied by the outgoing Managing Director, Dr Lars Richter, visited the Minister of Works, Engineer Nweze Dave Umahi, in Abuja, the minister lamented that the delay in mobilising to site, despite the approved funds by the Federal Executive Council (FEC), is causing untold hardship to road users and that the federal government is at the receiving end of the situation.
In a statement, the Director of Legal Services, Ministry of Works, C.O. Assam, recalled the various steps taken to arrive at the stage where the contract had to be terminated.
“It should be noted that an independent consultant, Yolas Consultants, reviewed the quantities and unit rates which were presented to the ministry, which fixed the contract sum at N710,831,802,660.35. Your company initially accepted the work items but later rescinded your acceptance, claiming an astronomical increase in the prices of construction materials. The Minister of Works graciously granted the upward review of the unit rates on basic items of work, from N710,831,802,660.35 to N740,797,204,713.25, which formed the basis of the Federal Executive Council (FEC) approval, despite the consultant’s submission.
“Recall further that the above approval was conveyed to your company as a final offer via letter Ref. No: WR. 15022/Vol.T/304 dated 23rd October 2024, requesting your company to indicate, in writing, an unconditional acceptance of the offer within seven days. However, your company rejected the sum of N740,797,204,713.25 and unilaterally prepared a revised Bill of Engineering Measurements and Evaluation (BEME), reducing the quantities and increasing the unit rates of work items, thereby altering the work items already approved by FEC.
“Upon receipt of your letter Ref. No: D12.90.1AKR.L.2024.0190 dated 29th October 2024, the ministry viewed your alteration of the work items approved by FEC as a counter offer and therefore unacceptable. You have once again deployed your usual delay tactics to further frustrate the ministry in delivering the project as scheduled, thereby worsening the situation of the road and causing untold hardship to commuters and other road users. This shows clearly that you are not interested in continuing with the work.
“Consequently, I am directed to convey to your company the decision of the Minister of Works to terminate the aforementioned contract in accordance with Clause 63 of the Standard Conditions of Contract (Road Works) Volume 1, 1999 Edition, with effect from the date of service of this letter on you.
“You are also hereby informed of the intention of the Federal Ministry of Works to enter upon the site and the works and take over the same from your company with effect from the date of service of this letter. The engineer’s representative shall, upon service of this letter, arrange with you for a joint measurement of work preparatory to taking over the site and work from your company. This is without prejudice to the exercise of other rights of the federal government under the contract,” he said.