THE Federal Government has mandated that road contractors will work on-site for at least two weeks before receiving mobilisation fees.
The Works Minister also addressed the recent termination of Julius Berger Nigeria Plc’s contract on the project, citing delays as the reason.
However, he clarified that the company remained engaged in other federal road projects, including the Bodo-Bonny Road and major bridge construction in Lagos.
The announcement that road contractors must mobilise to the site at least two weeks before receiving mobilisation fees follows the Federal Government’s introduction of stricter payment conditions for contractors.
Umahi, recently unveiled a new policy requiring contractors to provide an active Advance Payment Guarantee (APG) and a valid performance bond before receiving payments from the Ministry of Works.
An APG ensures that funds advanced to contractors are used solely for the project, while a performance bond guarantees that the contractor will complete the project as agreed.
These measures aim to enhance accountability, minimise project abandonment, and improve the quality of road construction ac.ross Nigeria.