By Aanya Igomu-Olagunju, Abuja
The Minister of Works in Nigeria, David Umahi, has announced a new policy regarding augmentation, price variation, raising of certificates, and changes to work scope. In a press statement, Mr. Umahi emphasized that this new policy applies to both existing and future requests for variation on prices.
According to the Minister, it is crucial for directors within the Ministry to conduct site visits before and after contractor payments are issued, in order to have a comprehensive understanding of project progress.
Explaining the details of the policy, the Minister stated, “When there is a variation in price or augmentation, all calculations, joint site measurements, written instructions, geo-technical reports, survey reports, and sketches must be included. Additionally, the new unit rates for items affected by the price variation or changes in scope or quantities should be provided, along with the new contract sum shown as an aggregate of the old rate and variation on price. The proposed new rates for the remaining quantities to completion should also be included.”
The Minister further elaborated, “For projects involving concrete or where the shoulders will be on concrete and the pavement on asphalt, we need to know the cost of concrete, whether in full or partial, for the ongoing jobs. Contractors are required to present two bills for this purpose, and I will make the necessary decisions upon review.”
Raising of Certificates
Emphasizing the importance of joint site measurements, the Minister stressed that the Resident Engineer, State Controller, Chief Engineers, and other relevant personnel need to be involved in this process. These joint measurements will then be utilized by the contractors to generate valuation certificates, including the necessary calculations and sketches. The Resident Engineer, State Controllers, and Regional Directors will review the certificates, and the designated authority responsible for issuing interim certificates can then issue temporary ones for the Minister’s approval before payment is made to the contractor.
Increase or Decrease in Scope of Work
The Minister appealed to all Ministry of Works staff and contractors to ensure that the entire length of the roads specified in the contract is made usable to road users before preparing any payment certificates. Furthermore, the presence of Resident Engineers is deemed essential for all projects. The Minister stated, “I need to know the cost before commencing any engagement. Effective from October 1, 2023, I will not approve any document that does not include the involvement of a Resident Engineer. State Controllers are prohibited from serving as Resident Engineers.”
The Minister also urged the Permanent Secretary of the Ministry of Works to promptly instruct all directors and staff to revise any pending memos in line with the new policy and return them for discussion and approval, where necessary. Additionally, daily site reports must be downloaded onto the Ministry’s Whatsapp platform without fail.
