37 Road Contractors Face Contract Termination As Works Minister Enforces 3-Month Deadline

Thirty-Seven contractors handling the 260 emergency federal road projects across the country got a three-month deadline to deliver or risk termination of contracts.
They were given the marching order through their representatives during a meeting with the Minister of Works, Dave Umahi in his Abuja office.
Most of the defaulting contractors are handling emergency road projects in Yobe, Jigawa, Zamfara, Benue, Kogi, Abia, Anambra, Imo, Akwa Ibom, Bayelsa, Cross River and Rivers states.
The minister reiterated that it is not obligatory for government to pay mobilisation fees to contractors for emergency road projects.
According to Umahi, the three-month deadline order to complete and deliver projects is required by the Standard Conditions of Contract of the Federal Ministry of Works, failing which the contractors risk termination.
In a statement by his media aide Uchenna Orji, the minister explained that the ultimatum became necessary because the Renewed Hope emergency road projects were funded through the 2023 Supplementary Budget to provide immediate intervention on critical, completely failed Federal roads nationwide.
The minister, who noted that the 37 contractors have made little or no progress since the roads were allocated to them, warned that they must mobilise effectively to the site by tomorrow or face the consequence.
The statement reads: “If after the deadline for mobilization to the site, any contractor fails to comply, the job shall be terminated by effluxion of time as the contract is for a time limit of 3 months.
“Any contractor whose job has stayed for more than 3 months without completion after the issuance of award letter must seek and obtain approval for extension of time from the Federal Ministry of Works.”
The minister warned the defaulting contractors that the projects awarded to them must be delivered within three months, adding that no excuse, including security challenges, or lack of mobilisation funds, will justify the delays causing road users to suffer.
He threatened that erring contractors will be blacklisted for hindering the administration’s efforts to revolutionize road infrastructure for economic prosperity.
The statement reads further: “The people are suffering, the President is having sleepless nights in his efforts to fix our road infrastructure to help our economy, and people will be given jobs and they are telling us stories.
“There have been jobs awarded by this ministry in the past and money paid, and the contractors would hold the money, and they would say it’s a security problem.
“Didn’t they know about the security situation before they got the job?”
On mobilisation fees, the minister stated that under the Standard Conditions of Contract, mobilisation funding is not a prerequisite for contractors to begin work on-site.
According to him, it is at the ministry’s discretion and will only be provided to contractors who commit, through an affidavit, to complete the job within three months of mobilisation.
He added: “Our new policy is that if you want mobilization and we are happy to give you, you will abide by the conditions. One is that there will be no review of any component of the mobilisation given.
“Two, we will give you 30% and you will do 30% of the work before we can give you another money. So, mobilisation is not compulsory. Again, emergency projects are not mobilised.
“The rule is that in emergency projects, you will go and do it 100%, and then you submit your papers. We now pay you 80% and send your documents to BPP. When they approve, we pay you the 20% balance”.
The minister also directed the Federal Controllers of Works to ensure proper supervision of projects in their sites and be abreast with the contract awarded, amount, date of award, timeline, review date, extension of time, argumentation granted and whether the contractor is on site.
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