The Ministry of Roads and Highways has outlined some measures to be followed to address interest payment GoG contracts.
In a letter, Ing. Dr. Abass M. Awolu, AG. Chief Director said, the Ministry of Roads and Highways as part of the measures aimed at ensuring a reduction in interest on delayed payments, the agencies are to adhere to the following.
1. All contracts are to incorporate 180-days period for payment.
2. The time for payment should be reckoned from when an IPC has been approved by the Agency head.
3. Agencies should put in the relevant mechanisms to clearly identify on the IPC, the date on which approval is given by the Agency Head.
4. Agencies are to put pragmatic measures to ensure reduction in the delay of certificate process which unduly disadvantages Contractors.
5. All relevant clauses relating to interest payments in contracts should be amended to indicate clearly that there shall be no payment for interest on interest on delayed payments.
According to the Ministry “You are to note that henceforth, any new contract that are submitted for signing without these directives, shall be returned to the respective agency.”