The Government of Imo State, South-East Nigeria, has terminated the contract for the construction of a seven-floor ultra-modern state judiciary headquarters due to a breach of the contract terms.

The contract which awarded to Nnutouch Global Ventures Limited at the cost of N1.32 billion for the total office area of 15,000 square calculated at the rate of N88,000 only per square metre. It was agreed by both parties to be executed and completed within 12 months.

An initial sum of N200 million was released to the contractor to enable him complete the foundation level of the building. After failing to deliver, the contractor requested for additional payment of N24 million to expedite work towards bringing the building to a foundation level within two weeks from the date of the payment which he also failed to accomplish after government granted his request.

Announcing the decision to terminate the contract, the commissioner for Lands, Survey, Housing and Urban Development, Hon. Uche Nwosu, said the building was abandoned without the foundation being completed by the contractor as agreed.

According to the commissioner in a statement issued today in the state capital, Owerri: “The government accepted and agreed to release the sum of N24m as an addition to the initial N200m to Nnutouch the contracting firm for the job after the contractor had agreed to complete the said level of the building within two weeks (14 days) from the date of the payment. The deed was signed, sealed and delivered on March 12, 2013 with all the parties including the chairman of the company, Osita Okereke and the secretary of the company. This came after one year the contractor failed to deliver to the foundation level. It is overwhelming that the contractor simply exhibited a dubious character having failed in every aspect of the contract terms including abandoning the job after the last payment of N24m which he pledged in an agreement would be used to complete the foundation level of the building.”

Hon. Nwosu said that evaluation carried out by his ministry saddled with the responsibility of supervising the project showed that the contractor could not do a job commensurate to the amount so far committed to the project. He disclosed that the state government is considering taking a legal action against the company.

•Photo shows Commissioner Nwosu who announced the contract revocation.

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