The Immediate past Commissioner for Works in Rivers State, Alabo George-Kelly has faulted claims by Governor Siminalayi Fubara that he inherited debts for uncompleted projects worth more than N225bn from his predecessor, Nyesom Wike. Dr. George-Kelly, a loyalist of Wike said this this known while responding to Fubara’s statement that his administration inherited over 34 uncompleted projects worth over N225bn......READ THE FULL STORY>>.....READ THE FULL STORY>>
George-Kelly, who served as commissioner for Works under Wike who is now the Minister for Federal Capital Territory explained that the money allegedly owed to contractors is called a ‘retention fee’
He dismissed the claims by Fubara that his administration inherited huge debts to contractors.
He added that Governor Fubara only initiated and completed the Bori internal roads.
However, our correspondent investigations through interviews in construction industry explained that “a retention fee” refers to a portion of the payment that is withheld by the client until the project is satisfactorily completed.
“The retention fee serves as a security measure to ensure that the contractor completes the project according to the agreed-upon terms .
According to various sources interviewed, “Rivers State, the retention fee is a percentage of the total contract value, typically ranging between 5% to 10%. The fee is withheld by the client and released to the contractor upon successful completion of the project. The purpose of the retention fee is to incentivize the contractor to fulfill their obligations and deliver a satisfactory outcome.
“In the event of disputes or unfinished work, the retention fee can be used to cover the costs of rectification or completion.
“The retention fee is a common practice in construction contracts in Rivers State and other regions”.
