WR.14752/VOL.II/226.

AD H (SE),

THE CONSTRUCTION OF IKOT EKPENE – AWKA IBOM STATE BORDER – ABA –

OWERRI DUALISATION ROAD: SECTION I: PHASE I: C/NO. 6155.

RE: REQUEST FOR EXTENSION OF CONTRACT PERIOD.

Pages 216 and 224 refers, please.

2. The Engineer’s Representative on the above named project forwarded a

request for the extension of the contract period in favour of the Contractor,
M/S Arab Contractors (O.A.O) Nig Ltd. from 30th November, 2017 to 1st May,
2019 a period of 18 months.
3. The status report on the project is as detailed below:
PROJECT DATA
Contractor - M/s Arab Contractors (O.A.O) Nig Ltd.
Contract No. - 6155
Contract Sum - N3,780,988,125.51
Project Length - 11.26Km
Commencement Date - 6th February, 2013.
Initial Completion Date - 8th August, 2015.
1st Extended completion date - 30th November, 2017.
Percentage completion - 21.95%
Lapse of Contract Period - 100%

FINANCIAL STATUS
Total Amount certified to date - N 1,168,372,260.91
Advance Payment Granted - N 567,148,218.75
Advance Payment Recovered - Nil
Advance Payment Outstanding - N 567,148,218.75
4. The Contractor attributed his request for the extension of contract period to
the following;
(i). non-payment of certified works;
(ii). inadequate budgetary provision, and;
(iii). Incessant rainfall experienced in the site during the year.
5. The Contractor also attached a programme of works which has been vetted in
line with the requested extension and found to be achievable if strictly
adhered to by the Contractor.
6. In accordance with Clause 44(1) of the Standard Conditions of Contract and in
consideration of the revised programme of works, the Contractor’s reason for
seeking an extension of contract period is justified.
7. In view of the above, it is suggested that the extension of the contract period
from 30th November, 2017 to 1st May, 2019 a period of 18 months be granted
to the Contractor M/S Arab Contractors (O.A.O.) Nigeria Limited to enable
the completion of the project, please.
8. Also, find abc of file memos to the Deputy Director Highways (South East),
Director Highways (South East) and Director Highways (Construction and
Rehabilitation).

9. Above submitted for your information and further necessary action, please.

Engr. A. O. Aremu.
CE I H (SE).

……….November, 2017.

WR.14752/VOL.II/228.
Deputy Director Highway (SE) II,

THE CONSTRUCTION OF IKOT EKPENE – AWKA IBOM STATE BORDER – ABA –

OWERRI DUALISATION ROAD: SECTION I: PHASE I: C/NO. 6155.
 RE: REQUEST FOR EXTENSION OF CONTRACT PERIOD.

Pages 216 and 224 refers, please.

2. The Engineer’s Representative on the above named project forwarded a

request for the extension of the contract period in favour of the Contractor,
M/S Arab Contractors (O.A.O) Nig Ltd. from 30th November, 2017 to 1st May,
2019 a period of 18 months.
3. The status report on the project is as detailed below:
PROJECT DATA
Contractor - M/s Arab Contractors (O.A.O) Nig Ltd.
Contract No. - 6155
Contract Sum - N3,780,988,125.51
Project Length - 11.26Km
Commencement Date - 6th February, 2013.
Initial Completion Date - 8th August, 2015.
1st Extended completion date - 30th November, 2017.
Percentage completion - 21.95%
Lapse of Contract Period - 100%

FINANCIAL STATUS
Total Amount certified to date
Advance Payment Granted
Advance Payment Recovered
Advance Payment Outstanding
- N 1,168,372,260.91
- N 567,148,218.75
- Nil
- N 567,148,218.75

4. The Contractor attributed his request for the extension of contract period to
the following;
(i). non-payment of certified works;
(ii). inadequate budgetary provision, and;
(iii). Incessant rainfall experienced in the site during the year.
5. The Contractor also attached a programme of works which has been vetted in
line with the requested extension and found to be achievable if strictly
adhered to by the Contractor.
6. In accordance with Clause 44(1) of the Standard Conditions of Contract and in
consideration of the revised programme of works, the Contractor’s reason for
seeking an extension of contract period is justified.
7. In view of the above, it is suggested that the extension of the contract period
from 30th November, 2017 to 1st May, 2019 a period of 18 months be granted
to the Contractor M/S Arab Contractors (O.A.O.) Nigeria Limited to enable
the completion of the project, please.
8. Also, find abc of file memos to the Director Highways (South East) and
Director Highways (Construction and Rehabilitation).
9. Above submitted for your information and further necessary action, please.

Engr. (Mrs) L. K. Mojekwu.

AD Highways (SE).

………….November, 2017.

WR.14752/VOL.II/230.
Director Highways (SE),

THE CONSTRUCTION OF IKOT EKPENE – AWKA IBOM STATE BORDER – ABA –

OWERRI DUALISATION ROAD: SECTION I: PHASE I: C/NO. 6155.

RE: REQUEST FOR EXTENSION OF CONTRACT PERIOD.

Pages 216 and 224 refers, please.

2. The Engineer’s Representative on the above named project forwarded a
request for the extension of the contract period in favour of the Contractor,
M/S Arab Contractors (O.A.O) Nig Ltd. from 30th November, 2017 to 1st May,
2019 a period of 18 months.
3. The status report on the project is as detailed below:
PROJECT DATA
Contractor - M/s Arab Contractors (O.A.O) Nig Ltd.
Contract No. - 6155
Contract Sum - N3,780,988,125.51
Project Length - 11.26Km
Commencement Date - 6th February, 2013.
Initial Completion Date - 8th August, 2015.
1st Extended completion date - 30th November, 2017.
Percentage completion - 21.95%
Lapse of Contract Period - 100%

FINANCIAL STATUS
Total Amount certified to date
Advance Payment Granted
Advance Payment Recovered
Advance Payment Outstanding
- N 1,168,372,260.91
- N 567,148,218.75
- Nil
- N 567,148,218.75

4. The Contractor attributed his request for the extension of contract period to
the following;
(i). non-payment of certified works;
(ii). inadequate budgetary provision, and;
(iii). Incessant rainfall experienced in the site during the year.
5. The Contractor also attached a programme of works which has been vetted in
line with the requested extension and found to be achievable if strictly
adhered to by the Contractor.
6. In accordance with Clause 44(1) of the Standard Conditions of Contract and in
consideration of the revised programme of works, the Contractor’s reason for
seeking an extension of contract period is justified.
7. In view of the above, it is suggested that the extension of the contract period
from 30th November, 2017 to 1st May, 2019 a period of 18 months be granted
to the Contractor M/S Arab Contractors (O.A.O.) Nigeria Limited to enable
the completion of the project, please.
8. Also, find abc of file memo to the Director Highways (Construction and
Rehabilitation).

9. Above submitted for your information and further necessary action, please.

Engr. A. R. Aransiola.
DD H (SE) II.

………….November, 2017.

WR.14752/VOL.II/232.
Director Highway (Construction & Rehabilitation),

THE CONSTRUCTION OF IKOT EKPENE – AWKA IBOM STATE BORDER – ABA –

OWERRI DUALISATION ROAD: SECTION I: PHASE I: C/NO. 6155.

RE: REQUEST FOR EXTENSION OF CONTRACT PERIOD.

Pages 216 and 224 refers, please.

2. The Engineer’s Representative on the above named project forwarded a

request for the extension of the contract period in favour of the Contractor,
 M/S Arab Contractors (O.A.O) Nig Ltd. from 30th November, 2017 to 1st May,
2019 a period of 18 months.
3. The status report on the project is as detailed below:
PROJECT DATA
Contractor - M/s Arab Contractors (O.A.O) Nig Ltd.
Contract No. - 6155
Contract Sum - N3,780,988,125.51
Project Length - 11.26Km
Commencement Date - 6th February, 2013.
Initial Completion Date - 8th August, 2015.
1st Extended completion date - 30th November, 2017.
Percentage completion - 21.95%
Lapse of Contract Period - 100%

FINANCIAL STATUS
Total Amount certified to date
Advance Payment Granted
Advance Payment Recovered
Advance Payment Outstanding
- N 1,168,372,260.91
- N 567,148,218.75
- Nil
- N 567,148,218.75

4. The Contractor attributed his request for the extension of contract period to
the following;
(i). non-payment of certified works;
(ii). inadequate budgetary provision, and;
(iii). Incessant rainfall experienced in the site during the year.
5. The Contractor also attached a programme of works which has been vetted in
line with the requested extension and found to be achievable if strictly
adhered to by the Contractor.
6. In accordance with Clause 44(1) of the Standard Conditions of Contract and in
consideration of the revised programme of works, the Contractor’s reason for
seeking an extension of contract period is justified.
7. In view of the above, it is suggested that the extension of the contract period
from 30th November, 2017 to 1st May, 2019 a period of 18 months be granted
to the Contractor M/S Arab Contractors (O.A.O.) Nigeria Limited to enable
the completion of the project, please.
8. Above submitted for your information and further necessary action, please.

Engr. A. O. Sogbesan.
Director Highways (South-East).

………….November, 2017.
 WR.14834/VOL.T/37.
Asst. Director Highways (SE),

THE CONSTRUCTION OF IKOT EKPENE BORDER – ABIA OWERRI DUALIZATION ROAD

SECCTION I, PHASE I (11.26KM FROM OWERRI END) IN AWKA-IBOM/ABIA/ IMO STATES.
C/NO. 6155.

RE: FLUCTUATION EFFECT ON CONTRACT’S AMOUNT.

Pages 17 and 36 of file refers, please.
2. The Contractor of the above mentioned project, M/S Arab Contractors (O.A.O.)
Nigeria Limited is requesting for the additional Variation of Price (VOP) provision,
due to fluctuation effect on the contract’s amount, in the sum of N393,072,849.06
(5% VAT exclusive).
3. Find below the comprehensive status report and financial data of the above road
contract.
PROJECT DATA
Contractor - M/s Arab Contractors (O.A.O) Nig Ltd.
Contract No. - 6155
Contract Sum - N3, 780,988,125.51
Project Length - 11.26Km
Commencement Date - 6th February, 2013.
Initial Completion Date - 5th August, 2015.
Extended completion date - 30th November, 2017.
Physical Accomplishment to Date:- 25.46%
Lapse of Contract Period - 100%
FINANCIAL STATUS
Amount certified to date - N 1,375,577,182.13
Advance Payment Granted - N 540,141,160.71
Advance Payment Recovered - Nil
Advance Payment Outstanding - N 540,141,160.71

4. According to the Contractor, the reason for this request is mainly due to huge
increment in the price of materials caused by inflation.
5. Please it is pertinent to state the following:
i. the last Interim Statement (I.S. 3) raised by the contractor was for the period ending
June, 2014. Taking into cognizance that there were budget provisions of
N750,000,000.00 for 2013 Appropriation while there is no budgetary provision for
2014 Appropriation and 2017 Appropriation is N 1,850,000,000.00.
ii. There is VOP provision in the contract BEME in the sum of N 163,307,986.35 which
the sum of N62,606,812.98 has been expended, leaving a balance of
N100,701,173.37. Also, there is a Contingency provision in the contract BEME in the
sum of N 171,473,385.67 of which the sum of N 41,995,390.41 has been spent,
leaving a balance of N 129,477,995.26 (see page 39 & 40 of file, please). The
remaining balance for the VOP and Contingency provisions when added up is
N230,179,168.63.
6. Sequel to 5(ii), the remaining balances in the VOP and Contingency provisions are
not adequate to cater for the additional VOP provision as requested by the
Contractor, as there is shortfall in the sum of N 162,893,680.43.
7. Furthermore, the current market prices for material, as quoted by the Contractor
(see page 15 of file) cannot be relied on, as various economic indicators within the
country may not be stable enough to sustain the quoted price of materials for a
reasonable period of time.
8. In view of the above, it is suggested that the Contractor should be invited for a
meeting to discuss the issue at hand and may be directed to continue to execute the
work within the provision of the contract BEME, please.
9. Also, find abc of file memos to the Deputy Director Highways (South East), Director
Highways (South East) and Director Highways (Construction and Rehabilitation).

10. Above submitted for your information and further necessary action, please.

Engr. A. O. Aremu.
CE I H (SE).

……….December, 2017.
 WR.14834/VOL.T/41.
Deputy Director Highway (SE) II,

THE CONSTRUCTION OF IKOT EKPENE BORDER – ABIA OWERRI DUALIZATION ROAD

SECCTION I, PHASE I (11.26KM FROM OWERRI END) IN AWKA-IBOM/ABIA/ IMO STATES.
C/NO. 6155.

RE: FLUCTUATION EFFECT ON CONTRACT’S AMOUNT.

Pages 17 and 36 of file refers, please.
2. The Contractor of the above mentioned project, M/S Arab Contractors (O.A.O.)
Nigeria Limited is requesting for the additional Variation of Price (VOP) provision,
due to fluctuation effect on the contract’s amount, in the sum of N393,072,849.06
(5% VAT exclusive).
3. Find below the comprehensive status report and financial data of the above road
contract.
PROJECT DATA
Contractor - M/s Arab Contractors (O.A.O) Nig Ltd.
Contract No. - 6155
Contract Sum - N3, 780,988,125.51
Project Length - 11.26Km
Commencement Date - 6th February, 2013.
Initial Completion Date - 5th August, 2015.
Extended completion date - 30th November, 2017.
Physical Accomplishment to Date:- 25.46%
Lapse of Contract Period - 100%
FINANCIAL STATUS
Amount certified to date - N 1,375,577,182.13
Advance Payment Granted - N 540,141,160.71
Advance Payment Recovered - Nil
Advance Payment Outstanding - N 540,141,160.71

4. According to the Contractor, the reason for this request is mainly due to huge
increment in the price of materials caused by inflation.
5. Please it is pertinent to state the following:
i. the last Interim Statement (I.S. 3) raised by the contractor was for the period ending
June, 2014. Taking into cognizance that there were budget provisions of
N750,000,000.00 for 2013 Appropriation while there is no budgetary provision for
2014 Appropriation and 2017 Appropriation is N 1,850,000,000.00.
ii. There is VOP provision in the contract BEME in the sum of N 163,307,986.35 which
the sum of N62,606,812.98 has been expended, leaving a balance of
N100,701,173.37. Also, there is a Contingency provision in the contract BEME in the
sum of N 171,473,385.67 of which the sum of N 41,995,390.41 has been spent,
leaving a balance of N 129,477,995.26 (see page 39 & 40 of file, please). The
remaining balance for the VOP and Contingency provisions when added up is
N230,179,168.63.
6. Sequel to 5(ii), the remaining balances in the VOP and Contingency provisions are
not adequate to cater for the additional VOP provision as requested by the
Contractor, as there is shortfall in the sum of N 162,893,680.43.
7. Furthermore, the current market prices for material, as quoted by the Contractor
(see page 15 of file) cannot be relied on, as various economic indicators within the
country may not be stable enough to sustain the quoted price of materials for a
reasonable period of time.
8. In view of the above, it is recommended that the Contractor should be invited for a
meeting to discuss the issue at hand and may be directed to continue to execute the
work within the provision of the contract BEME, please.
9. Also, find abc of file memos to the Director Highways (South East) and Director
Highways (Construction and Rehabilitation).
10. Above submitted for your information and further necessary action, please.

Engr. (Mrs) L. K. Mojekwu.

AD Highways (SE).
………….December, 2017.
 WR.14834/VOL.T/43.
Director Highways (SE),

THE CONSTRUCTION OF IKOT EKPENE BORDER – ABIA OWERRI DUALIZATION ROAD

SECCTION I, PHASE I (11.26KM FROM OWERRI END) IN AWKA-IBOM/ABIA/ IMO STATES.
C/NO. 6155.

RE: FLUCTUATION EFFECT ON CONTRACT’S AMOUNT.

Pages 17 and 36 of file refers, please.
2. The Contractor of the above mentioned project, M/S Arab Contractors (O.A.O.)
Nigeria Limited is requesting for the additional Variation of Price (VOP) provision,
due to fluctuation effect on the contract’s amount, in the sum of N393,072,849.06
(5% VAT exclusive).
3. Find below the comprehensive status report and financial data of the above road
contract.
PROJECT DATA
Contractor - M/s Arab Contractors (O.A.O) Nig Ltd.
Contract No. - 6155
Contract Sum - N3, 780,988,125.51
Project Length - 11.26Km
Commencement Date - 6th February, 2013.
Initial Completion Date - 5th August, 2015.
Extended completion date - 30th November, 2017.
Physical Accomplishment to Date:- 25.46%
Lapse of Contract Period - 100%
FINANCIAL STATUS
Amount certified to date - N 1,375,577,182.13
Advance Payment Granted - N 540,141,160.71
Advance Payment Recovered - Nil
Advance Payment Outstanding - N 540,141,160.71

4. According to the Contractor, the reason for this request is mainly due to huge
increment in the price of materials caused by inflation.
5. Please it is pertinent to state the following:
i. the last Interim Statement (I.S. 3) raised by the contractor was for the period ending
June, 2014. Taking into cognizance that there were budget provisions of
N750,000,000.00 for 2013 Appropriation while there is no budgetary provision for
2014 Appropriation and 2017 Appropriation is N 1,850,000,000.00.
ii. There is VOP provision in the contract BEME in the sum of N 163,307,986.35 which
the sum of N62,606,812.98 has been expended, leaving a balance of
N100,701,173.37. Also, there is a Contingency provision in the contract BEME in the
sum of N 171,473,385.67 of which the sum of N 41,995,390.41 has been spent,
leaving a balance of N 129,477,995.26 (see page 39 & 40 of file, please). The
remaining balance for the VOP and Contingency provisions when added up is
N230,179,168.63.
6. Sequel to 5(ii), the remaining balances in the VOP and Contingency provisions are
not adequate to cater for the additional VOP provision as requested by the
Contractor, as there is shortfall in the sum of N 162,893,680.43.
7. Furthermore, the current market prices for material, as quoted by the Contractor
(see page 15 of file) cannot be relied on, as various economic indicators within the
country may not be stable enough to sustain the quoted price of materials for a
reasonable period of time.
8. In view of the above, it is recommended that the Contractor should be invited for a
meeting to discuss the issue at hand and may be directed to continue to execute the
work within the provision of the contract BEME, please.
9. Also, find abc of file memo to the Director Highways (Construction and
Rehabilitation).
10. Above submitted for your information and further necessary action, please.

Engr. A. R. Aransiola.
DD H (SE) II.
………….December, 2017.
 WR.14834/VOL.T/45.
Director Highway (Construction & Rehabilitation),

THE CONSTRUCTION OF IKOT EKPENE BORDER – ABIA OWERRI DUALIZATION ROAD

SECCTION I, PHASE I (11.26KM FROM OWERRI END) IN AWKA-IBOM/ABIA/ IMO STATES.
C/NO. 6155.

RE: FLUCTUATION EFFECT ON CONTRACT’S AMOUNT.

Pages 17 and 36 of file refers, please.
2. The Contractor of the above mentioned project, M/S Arab Contractors (O.A.O.)
Nigeria Limited is requesting for the additional Variation of Price (VOP) provision,
due to fluctuation effect on the contract’s amount, in the sum of N393,072,849.06
(5% VAT exclusive).
3. Find below the comprehensive status report and financial data of the above road
contract.
PROJECT DATA
Contractor - M/s Arab Contractors (O.A.O) Nig Ltd.
Contract No. - 6155
Contract Sum - N3, 780,988,125.51
Project Length - 11.26Km
Commencement Date - 6th February, 2013.
Initial Completion Date - 5th August, 2015.
Extended completion date - 30th November, 2017.
Physical Accomplishment to Date:- 25.46%
Lapse of Contract Period - 100%
FINANCIAL STATUS
Amount certified to date - N 1,375,577,182.13
Advance Payment Granted - N 540,141,160.71
Advance Payment Recovered - Nil
Advance Payment Outstanding - N 540,141,160.71

4. According to the Contractor, the reason for this request is mainly due to huge
increment in the price of materials caused by inflation.
5. Please it is pertinent to state the following:
i. the last Interim Statement (I.S. 3) raised by the contractor was for the period ending
June, 2014. Taking into cognizance that there were budget provisions of
N750,000,000.00 for 2013 Appropriation while there is no budgetary provision for
2014 Appropriation and 2017 Appropriation is N 1,850,000,000.00.
ii. There is VOP provision in the contract BEME in the sum of N 163,307,986.35 which
the sum of N62,606,812.98 has been expended, leaving a balance of
N100,701,173.37. Also, there is a Contingency provision in the contract BEME in the
sum of N 171,473,385.67 of which the sum of N 41,995,390.41 has been spent,
leaving a balance of N 129,477,995.26 (see page 39 & 40 of file, please). The
remaining balance for the VOP and Contingency provisions when added up is
N230,179,168.63.
6. Sequel to 5(ii), the remaining balances in the VOP and Contingency provisions are
not adequate to cater for the additional VOP provision as requested by the
Contractor, as there is shortfall in the sum of N 162,893,680.43.
7. Furthermore, the current market prices for material, as quoted by the Contractor
(see page 15 of file) cannot be relied on, as various economic indicators within the
country may not be stable enough to sustain the quoted price of materials for a
reasonable period of time.
8. In view of the above, it is recommended that the Contractor should be invited for a
meeting to discuss the issue at hand and may be directed to continue to execute the
work within the provision of the contract BEME, please.
9. Above submitted for your information and further necessary action, please.

Engr. A. O. Sogbesan.
Director Highways (South-East).

………….December, 2017.