Contractors to Indemnify FG for Non-Completion of Projects

The Presidential Inter-ministerial Committee on verification of Ecological Projects in the South –East, and Director-General of the Bureau for Public Procurements,Emeka Eze, has noted that the Federal Government is to include an indemnity clause in all contractual agreements, beginning with the 2013 budget, as part of new measures to ensure proper execution, completion and quick delivery of all projects.

The new measure was proposed following the discovery that most contractors have short- changed government, by either abandoning projects, or using poor quality materials.

It was also discovered at the weekend, that the government would need well over N50 billion to tackle erosion and other ecological challenges in the South-East alone.

So far, only about N11.5 billion has been pledged by government in response to the N50 billion proposed by the Federal Ministry of Environment for tackling the problems.

However,  Mr. Emeka Eze, while reviewing the outcome of its extensive tour of projects in the area, observed that beginning with the 2013 budget, all contractual agreements would include indemnity clauses, to enable government recover its funds from the contractors, should such projects fail.


About Author

This is BizWatchNigeria. Nigeria's first online business Newspaper.

Comment here

This site uses Akismet to reduce spam. Learn how your comment data is processed.