Works Minister releases new augmentation, price variation policy

Nigeria’s Minister of Works, David Umahi has released a new policy on augmentation, price variation, raising of certificates and increase or decrease on work scope.

In a press statement, Mr. Umahi said the new policy must be adopted for all Variation on Prices and augmentation already gotten or new ones to be processed.

He said that it was important for directors in the Ministry to visit sites to know what is happening before and after issuing payments to contractors.

On the new policy, the Minister said “Where Variation on Price and augmentation has taken place or is to take place, let all calculations, site joint measurement, site written instructions, geo-technical report, survey report, sketches be attached. Let us have the new unit rate for items on Variation on prices or change of scope or quantities added and new contract sum shown on aggregated rate of old rate and VOP. Let us have the new reviewed contract sum as will be recommended by you. Let us have the proposed new rate on remaining quantities to completion. 

“On the remaining ongoing jobs directed to be continued fully on concrete or where the shoulders will be on concrete and pavement on asphalt, let us know cost of concrete amount by full or partial concrete. These two bills shall be presented to me and I will take decisions.  

“I have not changed any sub-grade, sub-base or base course of any ongoing project, cost or design but only the pavement structure. Whether asphalt or concrete we must get from contractors’ performance bond from a reputable bank for at least 50% of design shelf life of the project be guaranteed to us. Contractors will be doing earthwork – base course, expose the road to traffic for 60 days before putting any pavement and after this period, shoulders could be cast using mobile mixers and good vibrators while carriage way especially on trunk “A” roads shall be on concrete paver machine,” Umahi instructed.

Raising Of Certificates 

The Minister further emphasised the need for the Resident Engineer, the State controller, chief Engineers to be involved to get joint site measurement.

“The joint site measurement is then used by the contractors to generate valuation certificate attaching calculation and sketches.

“The Resident Engineer, state controllers and regional directors/ other directors shall review and whoever it is his/her job to issue interim certificate shall issue a temporary one for the approval of the Honourable Minister before interim one is issued to contractors for payment,” Umahi said.

Increase or Decrease in Scope of Work

he Works Minister appealed to all Ministry of Works staff and contractors not to prepare any payment certificate to any contractor if the entire length of the roads of the contract is not made motorable to road users.

He stressed the need for all projects to have Resident Engineers.

“I must know the cost before engagement. I will not honour any paper again where there is no Resident Engineer from 1/10/23. State controllers are barred from being Resident Engineers. 

“The Permanent Secretary of the Ministry of Works should please immediately get all directors and staff to rework pending memos following the new policy and bring back for discussion where needed and approval.

Daily Site report must be downloaded to our Whatsapp platform from sites daily,” Umahi added.