…Umahi charges Lubasch, new Julius Berger MD to brace up for a realistic contract pricing
By Dele Ogbodo
The new Managing Director of Julius Berger Plc, Dr. Pier Lubasch, has lamented the delay in mobilizing to Abuja-Kaduna-Zaria-Kano road site, despite the approval of N740 billion by the Federal Executive Council (FEC).
The delay he acknowledged is causing untold hardship to the road users on that road even as he said that the Federal Government is at the receiving end of the situation.
The Minister of Works, Engr. David Umahi, has therefore called on the new Managing Director to show corporate patriotism by accepting the Federal Government’s approved reviewed total contract sum of ₦740, 797,204,713.25 for the completion of the rehabilitation of the 82 km section II of the Abuja-Kaduna-Zaria-Kano road, contract No.6350.
The call according to the statement by Orji Uchenna Orji, on behalf of the Minister was made during the courtesy visit of the new Managing Director who was accompanied by the outgoing Managing Director, Dr. Lars Richter, at his office, Federal Ministry of Works Headquarters, Mabushi Abuja on Tuesday.
The statement reiterated: “The MD however lamented that the delay in mobilizing to the site despite the approved funds by the Federal Executive Council is causing untold hardship to the road users and that the Federal Government is at the receiving end of the situation.
“In the Minister’s Words: “So if Berger is not doing it, then let’s have other people to do the job and within the time that we can control price. We’ve had more than 20 letters from Berger on this.
“It is a ping pong game from Julius Berger. The prices rose from ₦710 billion to ₦740 billion because of these delays. And if we continue the delays, it is the problem of the Ministry of Works.”
The Minster expressed dismay that Julius Berger Plc, which has had years of patronage by Federal Government and sub-national governments, is not realistic in the contract pricing, especially at this time of Nigeria’s economic challenges.
He therefore urged the contractor to within 7 days accept or reject the approved reviewed contract sum for the completion of the rehabilitation of section II of the Abuja-Kaduna-Zaria-Kano road or face contract determination as Federal Government cannot be held to ransom by the desire for unrealistic pricing and augmentation by contractors.
Umahi, said: “This offer is not subject to any condition. It’s not subject to any condition that is being dished out here. It’s taken as given after more than 14 months. I’m sorry, I have to sound this way because there must be an end to negotiation. If anybody says there shouldn’t be an end to negotiation, then that person is not a business person. If you have negotiated for 14 months without any result, you should terminate the negotiation.”
While welcoming the new MD, the Minister reiterated the need for construction companies working with the Federal Ministry of Works to prepare to make sacrifices in terms of value for money and realistic contract pricing, so as to encourage the much needed road infrastructure revolution for the nation’s economic transformation which is a cardinal agenda of the Renewed Hope administration of the President of President Bola Tinubu.
He said: “Already a number of Berger projects have been terminated because the site has been abandoned. And we needed to do something about it because Nigerians are suffering. Nigerians are crying, and they are insulting the President. We cannot allow that to be happening.”
The new MD, however promised to revert as soon as possible on the issues sought to be addressed and hoped that consensus would be reached for the project to take off without further delay.
The outgoing MD in a remark, noted that the essence of the courtesy call to the Minister of Works was to introduce the new Managing Director of the company.