The recent termination letter issued by the Federal Government to Julius Berger Plc concerning the Abuja-Kaduna-Zaria-Kano road project was based on a disagreement over project costs and execution. The termination was in accordance with contractual terms, specifically Clause 63 of the Standard Conditions of Contract (Road Works) Volume 1, 1999 Edition.
The decision to terminate the contract came after Julius Berger allegedly failed to comply with revised project costs, scope, and terms, leading to work stoppage and reluctance to return to the project site. The Ministry of Works explained that the termination was a result of prolonged discussions with no substantial progress, as confirmed in a statement by the Director of Press and Public Relations at the Federal Ministry of Works, Mohammed Ahmed.
The Ministry further clarified that the initial contract value for completing 328.4 kilometers of road was N740.8 billion, which was later revised by an independent consultant to N710.8 billion. Despite the Ministry’s approval of an upward adjustment back to N740.8 billion, the contractor reportedly rejected the revised sum. Allegations of delay tactics and unauthorized modifications to approved work items by the contractor were also cited as reasons for the termination.
By invoking Clause 63 of the Standard Conditions of Contract (Road Works), the Ministry announced its intention to take over the project site immediately and conduct a joint measurement of completed work with the engineers’ representative. The termination letter addressed to the Managing Director of Julius Berger highlighted the Ministry’s decision to end the contract due to the contractor’s behavior and repeated delays.