The Federal Government has introduced stricter conditions for contractors seeking mobilisation fees as it moves to enforce greater accountability in project execution.
The Minister of Works, David Umahi, announced on Saturday that contractors would no longer receive the usual 30 per cent mobilisation fee unless they have deployed to the site and worked for at least 30 days.
Umahi made this known while inspecting Section One of the Abuja-Kaduna-Kano road rehabilitation project, which was previously handled by Julius Berger but later re-awarded to Infiouest Nigeria Limited.
The minister defended the government’s decision to terminate the contract with Julius Berger, citing the failure to agree on price variations, which the company reportedly pegged at N1.5 trillion.
‘I am satisfied with the speed and progress of work. Infiouest has not been paid a kobo, but this is the new policy of the Ministry of Works. Once a contractor signs an agreement, they must mobilise and work for at least 30 days before receiving any mobilisation fee’, Umahi said.
He noted that Infiouest had already met this requirement and that the government would now process its mobilisation fee.
Umahi further revealed that Section Two of the project would be presented to the Federal Executive Council for approval on Monday, despite uncertainties over the contractor handling it.
Justifying the policy shift, he explained that the Procurement Act does not mandate the government to pay mobilisation fees upfront but only provides an option.
‘The Procurement Act says a client may pay 30 per cent mobilisation—not shall or must. So, we decided to tweak that clause. If a contractor claims to have financial capacity during bidding, they must prove it by starting work first,’he added.
According to him, the government will release N75 billion, representing 30 per cent of the N252 billion, total project cost, as mobilisation for Infiouest. The project is expected to last 14 months.
On the Lagos-Calabar coastal highway, Umahi disclosed that 30km of Section One would be completed by May, while the remaining 17.4km is delayed due to settlements.
The minister also dismissed claims that the government was sidelining Julius Berger, stating that the company was still handling projects such as the Bodo-Bonny Road, Carter Bridge, and Idodo Bridge.
‘The new Julius Berger MD understands the situation better. He knows our policies must be respected because we are engineers, and good ones at that. Berger is not out; they are still working on key projects’, Umahi said.
He added that the commissioning of the Lekki Deep Seaport project would ease pressure on the Lagos-Sagamu road.
Speaking on behalf of Infiouest, its Managing Director, Joseph Aboujaounde, assured the government of timely and high-quality project delivery.
‘I knew the challenge but accepted it. Over the past three months, we have put in the work, and the results are visible. My promise is to deliver the best quality while respecting the project timeline’, he pledged.
