The Federal Government through the Ministry of Works has sent a letter of contract termination to Julius Berger Plc who has refused to accept the approved funding for the rehabilitation of Abuja-Kaduna-Kano highway.
According to the Ministry’s legal services, the letter which was dated 21 November, 2024 and directed to Managing Director, Messrs Julius Berger PLC, No. 10, Shettima A. Munguno Crescent, Abuja.
With the tittle, RE: REHABILITATION OF ABUJA-KADUNA-ZARIA-KANO ROAD IN THE FCT, KADUNA AND KANO STATES, CONTRACT NO. 6350.
Recalling the approval of the Federal Executive Council (FEC) in its meeting held on 23rd September, 2024 whereby the above Contract was re-scoped.
And reviewed to the sum of N740,797,204,713.25 with expected completion period of Fourteen (14) Months for the completion of the outstanding works (flexible pavement) in Section I (127KM), Section II (73.4KM) and Section III (128KM).
The letter noted that an independent Consultant, Yolas Consultants reviewed the quantities, unit rates which were presented to the Ministry which fixed the Contract Sum at N710,831,802,660.35.Which Julius Berger initially accepted the work items but later rescinded acceptance laying claims to astronomical increase in prices of construction materials.
Explained that 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 FEC approval, despite the Consultant submission.
Recall further that the above approval was conveyed to the Company as final offer vide letter Ref. No: WR. 15022/Vol.T/304 dated 23rd October, 2024 requesting Julius Berger to indicate in writing an unconditional acceptance form otherwise of the offer within Seven (7) days.
However, the Company facility rejected the sum of N740,797,204,713.25 and unilaterally prepared a revised BEME reducing the quantities and increasing the unit rates of work items thereby altering the work items already approved by FEC.Upon receipt of the letter Ref. No: D12.90.1AKR.L.2024.0190 dated 29th October, 2024 the Ministry viewed the company’s alteration of the work items approved by FEC as a counter offer and therefore unacceptable.
The Ministry said Julius Berger deployed its usual delay tactics to further frustrate the delivery of the project as scheduled, thereby worsening the situation of the road, causing untold hardship to commuters and other road users.
The Ministry admitted that this tactic shows clearly that Julius Berger is not interested in continuing with the contract while conveying the Minister’s decision to terminate it 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.
According to the 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”.
Stated further that the Engineers Representative shall upon service of this letter will arrange with Julius Berger 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.
