Termination Notice: FG Warns 37 Contractors on Emergency Projects

Minister of Works, Engr. David Umahi has issued a three-month ultimatum to contractors handling the federal government’s 260 emergency projects to deliver as required by the Standard Conditions of Contract or face termination.

The ultimatum was given during a meeting at the Ministry’s headquarters on Monday, attended by the management of the Federal Ministry of Works, contractors handling the projects, and the Federal Controllers of Works.

The Renewed Hope emergency road projects were included in the 2023 Supplementary Budget to address the severely deteriorated parts of critical federal roads nationwide.

In the meeting, Umahi identified about 37 contractors who have shown little or no progress since the contracts were awarded. He warned that these contractors must mobilize to their respective sites by Wednesday, July 10, 2024, or risk contract termination.

A statement by the Minister’s Special Adviser on Media, Uchenna Orji, made available to NIGERIA NEWS247, detailed Umahi’s position. He emphasized that any contractor failing to mobilize to the site by the deadline will see their contract terminated due to the three-month time limit stipulated.

Umahi also noted that contractors whose projects extend beyond three months without completion must seek and obtain approval for an extension of time from the Federal Ministry of Works.

Contractors, particularly those handling emergency road projects in Yobe, Jigawa, Zamfara, Benue, Kogi, Abia, Anambra, Imo, Akwa Ibom, Bayelsa, Cross River, and River States, were warned that no excuses such as security challenges or lack of funds would be accepted. Contractors failing to deliver will be blacklisted.

He highlighted the President’s commitment to improving road infrastructure to support the economy and criticized contractors who fail to deliver, emphasizing that security concerns should have been considered before accepting the job.

Federal Controllers of Works were instructed to ensure proper supervision of projects in their states, including awareness of contract details, timelines, and whether the contractor is on site.

Umahi reiterated that mobilization funding is not a prerequisite for starting the project but is at the discretion of the Federal Ministry of Works. Funding will only be available to contractors who commit to completing the job within three months of mobilization.

He explained, “If you want mobilization, we will give you 30%, and you must complete 30% of the work before receiving additional funds. Mobilization is not compulsory. Emergency projects are not initially mobilized; you must complete 100% of the project before submitting your papers for payment.”

Permanent Secretary Yakubu Adam Kofarmata added that the era of contractors delaying projects after receiving mobilization funds is over. He urged contractors to adopt a “Nigeria first” attitude under the Renewed Hope administration of President Bola Tinubu.

He stated, “We need to prioritize the nation. We are urging the Honorable Minister to stop considering VOP and augmentation because contractors should not be waiting for payment for six months after receiving an award letter. Let us put Nigeria first, and progress will follow.”