The federal government through the ministry of works has announced the termination of the N740 billion Abuja-Kaduna-Zaria-Kano road rehabilitation Contract which was offered to Julius Berger plc.
According to the termination letter signed by C.O Assam, the Director of Legal Services, Federal Ministry of Works, on Thursday, the decision was made in accordance with Clause 63 Standard Condition of Contract (Road Works) Volume 1, 1999 Edition, with effect from the date of service of the letter.
Federal Executive Council (FEC) in September, 2024 had granted approval for re-scope and review of the project to the sum of N740,797,204,713.25 with expected completion period of fourteen onths for the completion of the outstanding works (flexible pavement) in Section I (127KM), Section II (73.4KM) and Section III (128KM).
However, in the letter of contract termination sighted by BusinessDay said it engaged an independent Consultant to review the quantities and unit rates which were presented to the Ministry which fixed the Contract Sum at N710,831,802,660.35. which the company initially accepted but later rescinded acceptance laying claims to astronomical increase in prices of construction materials.
He noted that the ministry in a letter Ref. No: WR. 15022/Vol.T/304 dated 23rd October, 2024 had requested Company to indicate in writing an unconditional acceptance form otherwise of the offer within Seven (7) days but was rejected by the Company.
“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 you are not interested in continuing with the work.
“Consequently, I am directed to convey to your Company the decision of the Honourable Minister of works to terminate the above mentioned Contract in accordance with clause, 63 Standard Condition of Contract (Road Works) Volume 1, 1999 Edition with effect from the date of service of this letter on you.
“You are also by this letter be informed of the intention of the Federal Ministry of Works to enter upon the site and the Works and take over same from your Company with effect from the date of service of the letter on your Company.
“The Engineers Representative shall upon service of this letter on you, 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,” the letter read.
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