Minister of Works David Umahi has warned Reynolds Construction Company (RCC) that their contract for the Lagos-Ibadan Expressway will be terminated if they do not mobilize to the site within the next seven days. This warning was issued during his inspection of a section of the Lagos-Calabar coastal road that had previously been cleared of refuse.
Addressing journalists, Umahi pointed out that RCC’s delays in completing the road are due to ongoing negotiations with the ministry. He noted that while Julius Berger Plc has successfully completed Section 1 of the expressway from Lagos to the Sagamu Interchange, RCC still has approximately three kilometers of the Ibadan-bound section unfinished.
“This section also includes 8.5 kilometers of the Lagos-bound road, which has been redesigned for concrete pavement,” Umahi explained. “We have been negotiating with RCC for the past eight months. After seven days from today, if they do not mobilize to the site, we will issue a Letter of Termination.”
Umahi emphasized the importance of timely negotiations, stating, “Negotiation must have a timeframe. We can’t spend a year negotiating. If we terminate the contract now, people will start to criticize.” He elaborated on the difficulties of contract negotiations, mentioning that if a contractor’s cost demands exceed the client’s budget and the contractor refuses competitive rates, termination may be the only option.
Referencing the stalled Oyo-Ogbomoso road project, which has been in limbo for 18 years, he reiterated the necessity of adhering to timelines.
During his inspection of the ongoing construction of the first 47 kilometers of the Lagos-Calabar Coastal Highway, Umahi announced that it is expected to be completed by May of next year. He also revealed plans to reconstruct deteriorating sections of the Lagos-Abeokuta Expressway with concrete pavement while inspecting ongoing emergency repairs along a seven-kilometer stretch of the road within Lagos State.