The Minister of Housing and Urban Development, Muttaqha Darma, has expressed dissatisfaction with the slow pace of work on some federal housing projects under the Renewed Hope Housing, warning that contractors who have failed to meet contractual obligations may face sanctions.
Speaking with journalists on Sunday, after inspecting the Renewed Hope Housing Project in Katsina State, the minister said contractors who abandon projects without formally seeking extensions of time or contract variations have violated the terms of their agreements.
He stressed that contract agreements are legally binding documents and must be respected by all parties.
“To me, I think it is not good for someone who has signed a contract agreement and said that he will finish the work within a specified time, only to delay the project for whatever reason without extending the duration.
“If you violate a contract agreement, then definitely you could always be asked to pay some responsibility, a fine, or whatever obligation that you must pay. This is contract management and it is practised everywhere in the world,” he stated.
The Renewed Hope Estate in Katsina comprises 50 units of 1-bedroom semi-detached bungalows, 100 units of 2-bedroom semi-detached bungalows, and 50 units of 3-bedroom semi-detached bungalows as the different payment options have been designed to enable everyone who has a source of income and livelihood to own the homes when they are completed; and they are single-digit mortgage loans with up to 30-year terms provided by the Federal Mortgage Bank of Nigeria, Rent-to-Own schemes, and Outright Purchase options for those who can afford to pay upfront.