The Minister of Works, Sen. David Umahi, has terminated the contract for the construction of the Ekim-Odukpani portion of the Calabar-Itu Highway over poor delivery.
Umahi announced the termination of the contract being handled by Raycon Construction Company during an inspection tour of the Calabar-Itu Highway on Saturday.
He said that the termination became necessary because the company failed to meet the terms and conditions of the contract.
The minister said that the ministry would issue a stop-work order on Raycon Construction company, and that a joint measurement of work done would be conducted.
“This job was awarded as an intervention contract, it was taken over from Julius Berger because of the unreasonable price they gave to us,” he said.
“We are disappointed at the poor performance of the contractor. We shouldn’t have given them the job, the company has shown obvious lack of capacity to perform.
“This job is definitely beyond the capacity of the company. The termination is necessary to enable the ministry to bring in a new contractor,” he said.
The minister said that the contract would be given to a company that possessed the competency to deliver.
