“…I am directed to convey to your Company the decision of the Honourable Minister of works to terminate the above mentioned Contract 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 on you.”
21st November, 2024
The Managing Director,
Messrs Julius Berger PLC,
No. 10, Shettima A. Munguno Crescent,
Abuja.
RE: REHABILITATION OF ABUJA-KADUNA-ZARIA-KANO ROAD IN THE FCT, KADUNA AND KANO STATES, CONTRACT NO. 6350
*TERMINATION OF CONTRACT*
I am directed to refer to the above Contract and to invite you to recall 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 (Seven Hundred and Forty Billion, Seven Hundred and Ninety-Seven Million, Two Hundred and Four Thousand, Seven Hundred and Thirteen Naira, Twenty-Five Kobo) 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).
2. It should be noted that an independent Consultant, Yolas Consultants reviewed the quantities and unit rates which were presented to the Ministry which fixed the Contract Sum at N710,831,802,660.35 (Seven Hundred and Ten Billion, Eight Hundred and Thirty-One Million, Eight Hundred and Two Thousand, Six Hundred and Sixty Naira, Thirty-Five Kobo) and your Company initially accepted the work items but later rescinded your acceptance laying claims to astronomical increase in prices of construction materials. The Honourable 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.
3. Recall further that the above approval was conveyed to your Company as final offer vide letter Ref. No: WR. 15022/Vol.T/304 dated 23rd October, 2024 requesting your Company to indicate in writing an unconditional acceptance form otherwise of the offer within Seven (7) days. However, your Company facility rejected the sum of N740,797,204,713.25 (Seven Hundred and Forty Billion, Seven Hundred and Ninety- Seven Million, Two Hundred and Four Thousand, Seven Hundred and Thirteen Naira, Twenty-Five Kobo) 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.
4. Upon receipt of your letter Ref. No: D12.90.1AKR.L.2024.0190 dated 29th October, 2024 the Ministry viewed your alteration of the work items approved by FEC as a counter offer and therefore unacceptable. You have once again deployed your usual delay tactics to further. frustrate the Ministry in delivering the project as scheduled thereby worsening the situation of the road and causing untold hardship to commuters and other road users. This shows clearly you are not interested in continuing with the work.
5. Consequently, I am directed to convey to your Company the decision of the Honourable Minister of works to terminate the above mentioned Contract 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 on you.
6. You are also by this 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. The Engineers Representative shall upon service of this letter on you, arrange with you 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.
C.O. Assam
Director, Legal Services
For: Honourable Minister