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Lagos assembly to increase contractors’ mobilisation fee to 40%

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The Lagos State House of Assembly will increase contractors’ mobilisation fee to 40 percent in the ongoing amendment of the state’s Public Procurement Agency Bill, 2020.

The Chairman of House Committee on Public Procurement, Rauf Age-Sulaimon, disclosed this at a one-day public hearing in Lagos.

Age-Sulaimon said in the amended bill, the House would increase advance payment to contractors from 20 percent to 40 percent in order to encourage them to do their job effectively.

He said: “As you are talking about development, procurement is the most important aspect because if government projects are not properly executed, of course you will not see the result.

READ ALSO: Lagos Assembly proposes N20m licence fee for lottery, betting operators

“We have been talking about the money needed for projects and the economy is not smiling at all and for us to support contractors, there is a need for the government to encourage them.

“The essence of this amendment is to increase advance payment from 20 percent to 40 percent so that the person involved will be able to do the job effectively.

“We will ensure that contractors adhere strictly to the terms of the contract. It will benefit the masses because it will not be winner-takes-all. It will not be the survival of the fittest because the fittest may not be capable.

“Bidding for contract is open to everybody. Once you have the requirement, you will be allowed to bid and it is open to everybody.

“That is why we brought it before everybody.”

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