Abuja-Kaduna-Zaria-Kano Contracts by Julius Berger has Finally revoked

 

Minister of Works

Contract for the Abuja-Kaduna-Zaria-Kano road project handle by Julius Berger Plc has finally been terminated due to a series of disputes over project costs, scope changes, and implementation delays. 

 The contract was initially set at N710.8 billions by independent consultant who reviewed the work, but the Federal Government approved a revision to N740.8 billion.

Julius Berger, however, rejected the revised cost, citing rising material costs and proposing further price hikes, which the government deemed unacceptable.

Julius Berger allegedly caused delays, including halting work and not remobilizing the workforce to the site. 

The company also reportedly attempted to modify the scope of work unilaterally, which was not approved by the government.

Citing non-performance and breach of contract, the Federal Ministry of Works invoked Clause 63 of the Standard Conditions of Contract (Road Works), 1999 edition, to terminate the agreement. 

The government also decided to take over the project site immediately, including conducting a joint measurement of completed work.

Julius Berger faces reputational risks and potential financial penalties due to the non-cooperation and delay allegations.

 The dispute may lead to further legal or financial consequences.

The government plans to take control of the site and may engage a new contractor to complete the project. 

The termination emphasizes the need for clear communication and adherence to contractual terms in large infrastructure projects.

This development illustrates the complexities of managing large public contracts and the importance of resolving disputes promptly to avoid delays and cost overruns.