The Federal Government has said there would be no more project variation after mobilisation fee has been paid on a project.
Minister of Works, Engr. Dave Umahi who disclosed this in Lagos, said many contractors were fighting him over project variation, declaring that the policy of the federal government is that there would be no more project variation after a mobilisation fee has been paid.
Speaking with newsmen in Lagos when he inspected some road projects including the ongoing rehabilitation of the Third Mainland Bridge, Umahi said contractors cannot dictate to the government.
The Minister and his team including the Lagos Controller of Works, Mrs. Olukorede Kesha, and other officials of the Ministry also visited the under-deck of the bridges in Lagos.
Umahi also handed over the construction of the 700 km Lagos-Calabar Coastal Road to the contractor, signalling the commencement of work.
Daily Trust reports that the inflationary pressures have pushed up the cost of construction materials prompting some contractors to demand project variation.
But the Minister said while the government recognises that there has been a spike in the price of construction materials, a contractor is not entitled to project variation after mobilisation fee has been paid.
He said, “As a matter of our policy, if we give you a project and you delay it and you have our money in your hand and you delay it, we would not pay you variation for the level of your delay.
