- Minister Umahi directs contractors to sign revised contracts for Lokoja-Benin and Obajana Junction-Benin roads or face termination
- Contractors warned to sign new contracts promptly with specified rates and timelines, or risk forfeiting projects, Ministry of Works confirms
The Minister of Works, Sen. David Umahi, has directed the contractors handling sections I—IV of the Lokoja-Benin and Obajana Junction-Benin roads in Kogi and Edo states to immediately sign the new contract as reviewed or face termination of their jobs by the Federal Ministry of Works in accordance with the condition of service.
This directive was given to the contractors in a meeting with representatives of Mothercat Ltd, CCECC Ltd, Dantata & Sawoe Ltd, CGC Ltd, and RCC Ltd at the Ministry’s Headquarters in Abuja yesterday.
In a statement, Umahi directed the ministry to carry out a comprehensive audit of the ongoing projects to determine the status of work done, the capacity of personnel, and the equipment being used by the contractors.
The minister frowned at the actions of the contractors who participated in re-scoping and reviewing the contract specifications but failed to sign the reviewed contract documents after agreeing to do the job based on the new specifications.
He said, “The project was initially priced at N121bn but before the administration of President Ahmed Bola Tinubu, the project was already reviewed to over N870bn. When I came in as minister, I observed that the project was over-bloated, and I refused to obtain the No objection from FEC. I had to inspect the road myself and realized some road sections could not survive asphalt. So, we held meetings for over five months with all the contractors, and in those meetings, we agreed to re-scope the project. We re-scoped the project, specifying that the new lanes should be constructed with concrete and the others with asphalt.”
“We maintained the contracts, and we all signed the documents. Based on the signed documents, we took them to BPP and FEC. Before going to FEC, we demanded approval to ensure they could handle the job. They all provided letters of approval.”
He questioned why contractors were given jobs without the required manpower and equipment and warned that, henceforth, any contractor signing a contract must also sign alongside the basic rate and timeline.
He said, “The government’s stance is that if you do not sign the contracts between today and tomorrow, you will forfeit the jobs. You can go to court, but we will not enter into any further negotiation. This contract is over N2 billion per kilometre. You do not have the equipment to do the work. Let me assure you that if you sign the contract, it will include the basic rates.”
The CGC, in its response, expressed commitment to the minister’s directive.
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