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BDC Notes

The construction industry in Kenya consists of various actors including clients, consultants, project managers, architects, engineers, quantity surveyors, environmental experts, social scientists, contractors, material suppliers, local authorities, financiers, and property managers. The government has historically been the largest client, accounting for about 60% of the industry. Project managers are becoming more common to administer projects objectively. Architects design buildings while engineers provide structural, civil, mechanical, and electrical engineering designs. Quantity surveyors and material suppliers also play important roles in the industry. Local authorities regulate development but have been criticized. Financiers provide funding, while property managers oversee facilities once completed.

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0% found this document useful (0 votes)
127 views11 pages

BDC Notes

The construction industry in Kenya consists of various actors including clients, consultants, project managers, architects, engineers, quantity surveyors, environmental experts, social scientists, contractors, material suppliers, local authorities, financiers, and property managers. The government has historically been the largest client, accounting for about 60% of the industry. Project managers are becoming more common to administer projects objectively. Architects design buildings while engineers provide structural, civil, mechanical, and electrical engineering designs. Quantity surveyors and material suppliers also play important roles in the industry. Local authorities regulate development but have been criticized. Financiers provide funding, while property managers oversee facilities once completed.

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ISAAC KIPSEREM
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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The Actors in the Industry

The construction industry in Kenya consists mainly of the following actors:

Clients

The client may be a government parastatal, local authority, an individual, a private company such as a
bank, an industrial organisation or an institution such as school or hospital, a capital investor or a
speculator. Pension funds and insurance companies are also involved in the construction industry as
clients. The government of Kenya, however, has been for a long time the major client for the
construction industry constituting about 60% of the total value, which currently stands at 4% of the GDP.
The client normally initiates the project and provides the design team with a project brief based on his
needs and budgetary constraints and therefrom the design team undertakes to propose solutions to the
client’s needs.

Consultants

Project Managers

The concept of independent project managers is fairly new in Kenya and is the process of taking root.
Previously one of the design consultants used to act also as a project administrator and would provide
the necessary liaison between the client and the design team. The disadvantages of such a set-up are
many. Such a person may lack objectivity as a project administrator and favour his team leading to
unnecessary conflicts between the various consultants and the contractor in a project and affect the
implementation of the project. Indeed this has been the case in Kenya unto a point where the market
has lost confidence in the industry so . Hopefully project managers will help restore this confidence.

Architects

The architect designs the form of the building providing space to meet the client’s needs and also
incorporating aesthetics based on cultural and regional trends and environmental aspects. Kenyan
architecture is quite varied and interesting due to a number of factors. The multi-cultural aspect of the
Kenyan history is seen in the country’s architecture too as different cultures have imparted on Kenyan
architecture differently. Currently there are two Universities in Kenya offering architecture namely the
University of Nairobi and Jomo Kenyatta University of Agriculture and Technology and most of the
architects from these colleges do post graduate studies abroad bringing with them back to Kenya
different architectural experiences from different regions of the world.

Engineers (Civil, mechanical and electrical)

Engineering is a well-developed profession in the Country as three of the four Kenyan universities offer
engineering courses up to doctoral studies. The Kenyan engineer is well trained by any standards and
this has added value to the construction industry in the sense that engineers are readily available for the
industry. In most building projects the engineer works in collaboration with an architect providing
essential services such as structural, civil, mechanical and electrical engineering designs.

Quantity Surveyors/Building Economists

It is common practice in Kenya to incorporate bills of quantities in the tender documents. The advantage
of this is that all the tenderers have the same project parameters and therefore make it quite easy to
analyse the bids and also ensures responsiveness of the tenders. As a result building economists provide
an invaluable role in the construction process. Ideally the building economist is not part of the design
team but provides staff input for the architect or project manager. Building economists are readily
available in Kenya although they have traditionally been termed quantity surveyors; a term they don’t
readily accept.

Environment

Experts In the earlier days projects were constructed without much regard to the sustainability of the
construction industry or care for the environment. Construction projects require huge amounts of the
Earth’s natural resources and it is, therefore, necessary to protect the environment form the vagaries of
the industry. Environmental experts assess projects and draw environmental impact assessment with a
view to minimizing the negative effects while enhancing the positive ones.

Social Scientists

Social scientists analyse projects and come up with recommendations appertaining to gender and other
social issues thus incorporating a social dimension to projects. This helps in maximising the benefits
accruing from a project. For example building of a factory in a certain location may appear to be a good
idea considering the number of jobs that will be available to the local populace but on the other hand if
not carefully implemented this may lead to growth of slum areas in a bid to provide shelter and social
amenities for the labourers in the factory. Demographic effects of the project need to be, therefore,
assessed and results incorporated in the design.

Contractors

Contractors for construction projects are readily available in Kenya. One may find contractors of all
categories ranging from labour based contractors for simple jobs to those with the most advanced
equipment in the market today and a capital base of millions of US dollars. There are also foreign-based
contracting companies who have invested in Kenya such as John Gleeson and Mowlem from UK. The
government sometimes carry out construction works for its own projects by using the Ministry of Public
Works and Housing which is also the custodian of all government owned properties.

Material Suppliers

There are enough construction material suppliers in the country at the moment to satisfy the demand.
Materials such as paints, glass, cement, steel, plastic and ceramic wares are all manufactured locally.
However there is a dire need for increased prefabrication to minimize wastage and improve on the
quality of the finished product and delivery time. This is an area where the suppliers can capitalise on as
the players are quite few at the moment. Maybe when the number of prefabricators increase the cost of
prefabricated products will reduce making such goods more attractive to contractors as opposed to site
fabrication and, therefore, making construction cheaper to the clients.

Local Authorities

The local authorities are charged with the role of regulating and controlling development. They serve
also as providers of infrastructure services such as maintenance of roads and corresponding furniture,
trunk sewers, garbage collection and water. In recent years, however, the local authorities have fallen
short of the expectations of the citizenry. Uncontrolled development has sprung up almost everywhere,
and provision of services that only the government can provide, has been found to be lacking by many
taxpayers. This lack of concern has been attributed by many to the interference in the running of the
local authorities by politicians and many are calling for a revision, if not total overhaul, of the local
authorities act with a view to making them more autonomous. Building standards and regulations in
Kenya are in five documents namely; the Public Health Act (1972), Physical Planning Act (1996), the
Building Codes (1968), Local Government Act (1977) and the Revised Building By-laws (1995). The
revised bye-laws are also known as Code 95, and are an improvement on the others which were found
to be out of touch with local realities as they favoured imported materials and technologies which
pushed up the cost of housing. The local authorities are supposed to enforce these by-laws.

Financiers

There are various finance institutions from which investors may get financial assistants such as banks,
mortgage companies, non-governmental organisations, public and private pension funds, financial and
insurance companies. All these are organisations that need to invest for long terms. Of particular
interest to the building industry are mortgage companies which are created purposely for the building
industry. World Bank, African Development Bank and bilateral aid agencies also finance projects through
loans and grants to the government and non-governmental organisations.

Property Managers

Once the facility is complete and has been occupied property managers take over to ensure that the
value of the facility is maintained by putting in place proper maintenance and operation procedures for
maximisation of the utility and profits accruing from the facility. Construction process in Kenya 10–7

PROJECT DESIGN

Project Organisation

Normally the client is the head of the team since he makes all decisions regarding the project. Before
the onset of project management architects and engineers were the de facto project administrators for
building and engineering projects respectively despite being involved in the design. In such a set-up
problems do arise since the architect or engineer may lack objectivity and favour his team. Incidents are
rife whereby the architect delays his design and orders the engineers to complete their inputs in two
days! This sometimes causes unnecessary conflicts much to the detriment of the project and the
construction industry as a whole. Considering these facts the role played by project managers as
objective project administrators is vital for the sustainability of the industry. The Hazina Housing Estate
had a set-up whereby the architect served as a project manager. The organisation structure showing the
communication channels for the project is shown in figure 4. This is a standard organisation chart for a
project of this magnitude in Kenya the only variance being the number and nature of the subcontractors
and the project manager who has replaced the architect/ engineer in contract administration. The
environmental experts and social scientists that are common in projects today are also not shown here
because the project did not have them on board. Note from the figure that the quantity surveyors
provide staff input for the architect. The local authority, Nairobi City Council, provided staff inputs for
the architect too being a regulatory body. The civil/ structural engineer’s supervision team is also
included in the chart. It is usual in Kenya for the engineer to have a team at site depending on the nature
and size of the project.
Procurement of Consulting Services

Normally the client does not have the necessary technical expertise required for successful design and
supervision of the project and it is common practice to outsource. The aspect for outsourcing by the
firms has become more popular in recent years as the firms have realised the need to concentrate on
the core business. NSSF Project Manager Clerk of Works Architect Quantity Surveyor Local Authority
NSSF Project Board NSSF Caretaker Civil/Structural Engineering M& E Engineers Main Contractor
Subcontractors Inspector of Works Resident Engineer Secretary Drivers Office Assistants. NSSF is such a
firm despite its size and involvement in the construction industry for a long time it still prefers
outsourcing for the consultant services. The consultants for Hazina Housing Estate were appointed by
the client because of the leading roles they play in their respective areas of operation in the market. The
architectural firm is well known for innovative designs especially in the field of housing. The
civil/structural engineering consultancy was provided by one of the leading local engineering consulting
firm in the country with an experience spanning over 25 years. This method of procurement by
appointment is popular and applies particularly to consulting firms with long experience and a
commendable track record in the industry. Experience has shown that different projects require
different procurement procedures depending on the client, financier and the nature of the services to
be provided. For public funded projects transparency is always the overriding factor and in this case
open tendering is always preferred. This may entail advertising in the local newspapers or inviting a few
consultants already registered with the authority in question to tender for the provision of the
consultancy services. Questions have indeed arisen as to whether this method of procurement is
corruption free as it is intended to. Many feel that the method is used to dupe the public but the actual
procurement is riddled with corruption. Some private investors prefer working with consultants who
they have used over the years and have, therefore, built a good working relationship. Incidents are
common whereby a client stay with a particular consultant for years on end. Whether the client gets
value for his money by using this method is questionable as the consultant may lose objectivity after
serving the same client for a long time. However this method of procurement is quite common in Kenya.
The procurement by selective tendering is, also, widely practised by many private clients and this
method of procurement is perhaps the best. It gives the client an opportunity to engage the consultant
best suited for the work and at a competitive rate without having to spend too much money and time as
in the case of open tendering. The professional fees payable to various consultants in the design maybe
worked out using the various guidelines available such as the Ministry of Public Works and Housing and
the Association of Consulting Engineers of Kenya Scales of Fees for Consulting Services although
negotiations of fees is common. The fees are assessed by either considering the cost of the time-inputs
of the consultant teams or as a percentage of the total project cost. In case of Hazina Housing Estate the
fees were based on the Ministry of Public Works and Housing scales of fees.

Project Planning

Usually project planning is done during the bidding stage for provision of consulting services in most
cases whereby the consultants give tasks and manning schedules for various work items and time-inputs
of the team members proposed respectively. These schedules may be used during the design stage
although variations may occur especially if the terms of reference did not adequately address the
services to be provided. These variations may have a financial implication that the client has to meet.
Consultants, however, usually play safe by pointing out that the time-inputs may change if the work-
inputs vary from what is specified in the terms of reference. Where consultants are hired by nomination
without going through the bidding process then the planning for the design is done soon after the
client’s brief. This applied to Hazina Housing Estate since all the consultants were nominated. Depending
on the time frame construction of a project may start before the completion of the design in which case
drawings are issued to the contractor in stages starting with the foundations. Usually this method is
applied in fast track projects where time is of essence and project delivery period is usually much
shorter than when all the design has to be completed before the tendering process. Being a fast track
project and considering the number of consultants involved a lot of coordination was essential to ensure
timely delivery of the designs for Hazina Housing Estate. A general production plan for all the
consultants was prepared and then each consultant prepared an in-house plan so as to meet the design
deadlines for the project . Meetings were held under the chairmanship of the architect on regular bases
to monitor progress and coordinate the design inputs of the various consultants. Construction process in
Kenya

Project Financing

More often than not the client have to borrow money to finance a project and sometimes the project
manager is called upon by the client to advise on project financing depending on the nature of the client
and the project. For a commercial venture he advises the client on the financial viability of the project
and the returns expected. Banks, insurances companies and pension funds sometimes do sponsor their
own projects using own capital since they have funds to invest for long terms and may, therefore, not
borrow. Such an arrangement was used for financing Hazina Housing Estate. These institutions may also
serve as lenders to other entities that may want to invest in the building industry. In many instances
projects are financed by local borrowing from local financial institutions but due to the high interest
rates (currently the base rate stands at 25%) offshore borrowing is gaining popularity for those who
have access to finance institutions outside the country. In some cases the client may have some money
to invest in a project but not the whole amount. In such a case he may take a loan to bridge the deficit
or may look for other investors with money to invest. Joint venture projects are common in Kenya. The
normal mortgage period is between 10 and 15 years. The government do finance projects through loans
from World Bank or any other international development bank and/or by grants from bilateral donor
agencies. In the last few years , however, the popularity of World Bank as a financier of government’s
projects has been waning due to strict conditions which, according to the government, are more often
political than economical. Of course this is shortsightedness on the part of the government given the
fact that there is no way you can draw a line between the two especially in developing countries in Sub-
Saharan Africa whereby bad politics have stemmed any meaningful development for years on end. In
many instances problems have been experienced during project implementation due to the client’s
failure to organise proper financing for the project, and therefore, affecting contractor’s cash flow
adversely and sometimes causing project stoppages for long periods. This has not augured well for the
industry. The biggest culprit is the government whose project completion ratio stood at about 5% for
the year 1999. There are many unfinished projects worth millions of Kenya shillings scattered all over
the country which are holding money that could have been put to other use.

Budget and Budget Control

The client during the briefing stage may give an indication of the budget to the architect and normally
the architect prepares the scheme design with this in mind. Project budgets, however are drawn once
the design is complete and the tender documents ready. The estimate for the works are prepared for
comparison with the client’s budget and if found in excess the design for the scheme may be repeated
with a view to reducing the cost. With experience and by use of computers it is possible to come up with
fairly accurate cost estimates during the early stages of the project for the purpose of setting the
budget. Other times the investor may not specify the amount of capital to be invested but only the type
of project in form of a brief and the budget is drawn after the completion of the scheme design.

Information Technology

Most professionals have realised the advantages of using the information technology . Nowadays it is
normal to find a consulting office, architectural or engineering, with fully computerised processes such
as design, detailing and data processing. AutoCAD and ArchiCAD software are widely used by consulting
offices their high costs not withstanding. Various structural analyses programs such as STAAD, PROKON
and LUSA are locally used by engineers. Microsoft Project and Primavera are popular amongst project
managers both consulting and in-house and the big contractors. However information technology has
not been embraced by all with the same fervour, in particular the small firms who are in the majority.
The reason for this may be that most of them are single person establishments with low turnover and
few employees. They may, therefore, resist use of computers simply due to the cost factor. Needless to
say, most people including clients are unwilling to deal with such firms and it is evident that information
technology awareness is driving a gap between those that are willing to accept change and those
resisting it. In case of Hazina Housing Estate all the consultants involved are large and major players in
the industry. There was, therefore, extensive use of computers in all facets of design and data
processing. This ensured timely delivery of the designs and all the consultants were able to keep up with
the design programme. It would have not been possible for any consultant to do this without the use of
computers. Sometimes this fact may serve as a limitation to the size of project a design consultant may
handle and hence stifling growth.

Conclusions and recommendations

Consultancy services for the building industry in Kenya are readily available and competent enough to
meet the market needs but there is a need, however, to increase the role of project managers in the
industry as this provides a viable alternative to having members of the design team administrating
building contracts because this has been seen to bring about unnecessary conflicts which do harm the
industry. A project manager may also give the client more objective advice regarding the project than a
member of the design team. More money and time should be spent during the design stage as good
design is very necessary for a successful project. The clients should be made to understand that money
spent on design is not wasted. Social aspects of projects must be analysed and considered in the design
to ensure that projects benefit societies at large and not just individuals. Also projects need to be very
sensitive to environmental issues regardless of the cost as this is necessary for sustainability of the
construction industry. The advantages of information technology are many. Consultants can reduce
overheads by using computers in their design processes as this it reduces projects delivery time and
hence lower cost to the clients. It will, therefore, be a worthwhile venture to increase the use of
computers in the industry despite. The best way to do this is by lowering the cost of computers and their
consumables and this could be done by the Government’s reduction of tax on the equipments. There is
a need for improvement in project financing and budget control for Government projects to avoid
runaway project budgets and ensure a higher projects completion ratio. This could be done by
eliminating political interference and giving building professionals more freedom in implementation of
the projects. Production Tendering and Contracting Tendering process may entail preparation of tender
documents and selection of the contractors to be involved in the tender in case of selective tendering.
Experience gained with different contractors and the nature of the project, construction period and the
type of contract desired are usually the criteria for the pre-qualification of tenderers and the tendering
process adopted. Tendering procedure may be initiated after the design drawings, specifications, bills of
quantities and estimates are complete and the client has agreed on a working budget when time is not
of essence. A variation to this is whereby the time for design and tendering is short and does not allow
for this type of procedure. Consequently the tendering is done way before the completion of the
detailed design and in such a case the tenderers are required to give schedule of rates that are used for
valuation of work during construction. For a project to be successfully completed it is necessary to have
a good contractor who has the resources and the necessary infrastructure to carry out the works
competitively. The main objective of the tendering process must, therefore, be geared towards
identification of such a contractor. In Kenya sometimes this objective is overshadowed by other motives
and tendering process is carried out for the sole purpose of hoodwinking the public regarding the
transparency of the procurement process. There are cases where a contractor is awarded a contract way
Construction process in Kenya 10–11 beyond his capability resulting in unfinished projects or ridiculous
time and cost overruns especially in the public sector. After the tenders have been returned the project
manager or lead consultant carry out analyses of the different tenders and recommend to the client the
tenderer best suited to carryout the works. Usually such a tenderer is the one with the lowest tender.
Various forms of contracts are used and suitability of one form or another is usually determined by
prevailing circumstances such as time, nature of works and the client. The most popular form is whereby
the consultants carry out the design and a main contractor builds with the help of subcontractors.
Subcontractors appointed by the client are termed nominated subcontractors and those appointed by
the contractor domestic. It is usual for the contractor to be paid a fee for attendance to nominated
subcontractors such as provision of access, power, water, security etc. This type of contract was used for
Hazina Housing Estate. The client may decide to breakdown the contract into small subcontracts in
order to get the best cost for the works from different subcontractors. In such a set-up there is no main
contractor. The tendering procedure for this type of contract is quite involving and close monitoring may
be required during implementation due to the relatively large number of subcontractors involved in the
process. This type of contract is not common in Kenya and is only used when the bulk of the works
require different specialists subcontractors. Depending on the nature of the works a client may opt for a
design and build contract whereby the contractor is responsible for design and construction of the
project. This type of contract has been gaining popularity due to loss of confidence by the clientele in
the contracts where the design and construction are handled by different parties as explained earlier.
However in design and build contract the contractor may lack objectivity when it comes to designing of
the project. Also most contractors in Kenya do not have design teams in their establishments and ,
therefore, have to outsource for these services. Since the contractors aim is to maximise profits he may
not go for the best designers in the market and, therefore the client is not assured of value for his
money. Unless the client has a project manager who is able to ratify the contractor’s design it is not
recommended especially where the contractors are not known for honesty Labour contracts are
commonly used for small projects and whereby the client has the capacity to supply materials to the
labour contractor. However this type of contracting is not popular with consultants because it lacks the
mechanism to enforce good workmanship. For example in a normal contract the consultant is
empowered to order demolition of work not done to his satisfaction and the cost of such demolition and
rebuilding is met by the contractor which is quite difficult in a labour contract since the contractor may
not have the capacity to meet such costs. A contract may also be defined by the mode of payment to the
contractor. If the total price of the contract is fixed at the beginning then it is termed fixed price contract
which may either be lump sum, schedule of prices or measure and value contract. Lump sum contracts
are usually suitable for small projects where all the project’s parameters are known and the construction
period is short and, therefore, the contractor’s rates are not affected by inflation throughout the entire
construction period. Schedule of rates contract is normally used when time is short and the contractor
has to start work long before the designs are complete. In such a case stage design approach from
foundations up is adopted and, therefore, the total project period is shortened. This type of contract is
not popular in Kenya and is not usually practised. The most popular form of contract is the measure–
and–value contract whereby the contract documents include specifications of the works to be done,
complete bill of quantities and drawings. The finished work is measured at intervals usually agreed on in
the contract and the contractor paid for the approved work done. Cost reimbursement contracts such as
fixed fee, value–cost and target cost contracts are not common in Kenya. Production Planning
Production planning entails allocation of various resources such as time, labour, cash, plant and
equipment to ensure efficient use of these resources and timely completion of the project. A production
plan may, therefore, include time, manpower, plant, equipment and materials schedules and cash flow.
Peter Kimari Gitau 10–12 The contractor submits his programme for carrying out the works based on the
programmed time to the project manager or the lead consultant for approval. The main construction
tasks are usually analysed by use of standard software such as PRIMAVERA or Microsoft Project and the
critical path determined. Usually the critical path is used to control the operations because most of the
eventual time related claims by the contractor could be linked to these activities. However it is worth
mentioning that only a small number of contractors in Kenya have these programs or are able to use
them and most of them usually hire consultants to assist them in planning on per job basis. Other
schedules from the contractor such as deliveries, equipment and manpower are also reviewed to
determine their adequacy and documented in appropriate formats in order to be used in following the
progression of construction capacity and supplies throughout the contract period. After the approval of
the contractor’s production plan it is used for monitoring of the works during production. The aspects of
monitoring involve reviewing of progress and proposing of remedial measures when the achieved
progress falls below the expected. Bar charts are normally preferred at site because they are much
easier to use for monitoring purposes and can be interpreted by even the unskilled labour. In the
Kenyan market it is common to see projects especially public funded projects with time overrun of many
years. In most cases this is brought about by lack of proper financing arrangements by the client or
diversion of project funds to other areas. Currently the completion ratio for government projects is very
low and there are unfinished projects scattered all over the country. Quality Management The aspect of
quality management is necessary to ensure that the final product conforms to the design requirements
and it is an ongoing process from the beginning of the project to the end. It is, therefore, necessary to
set-up quality control procedures and draw up a project quality plan at the beginning of production.
Quality plans are used to give details of the duties of monitoring and supervising the construction works
and their allocation. Quality management audits are performed at intervals to monitor the efficacy of
the quality plan and propose remedial measures when the targets are not achieved. A normal task
schedule for quality control is shown in figure 5. A similar schedule was used for Hazina Housing Estate
for the civil and structural engineering works. A very small number of contractors use the ISO9000
guidelines on quality management and the degree of usage varies from Figure 5: Task schedule for
construction quality control organise testing procedures review material sources prepare testing
program inspect the works test materials test workmanship carry out tests on completion Construction
process in Kenya 10–13 firm to firm depending on the size and nature of the firm just like for the
consultants. Most of them lack clear quality policies or plans. Working with such a contractor is a
nightmare for many consultants as they have to be monitored very closely to ensure adherence to
specifications and sometimes this close monitoring is not part of the consultant’s responsibility
especially if there is no site supervision team. Economic Control Once construction of the project has
started there is a need to put in place measures to control the cost of the works so as not to exceed the
budget. In Kenya this is usually done at regular intervals and is usually in form of financial appraisals. Any
discrepancies are corrected early enough or if inevitable reported to the client for allocation of funds.
Monies saved from one area of the project may be set aside to be used to finance other aspects of the
project such as increased scope of works. Also as a cost control measure any change that may have a
financial implication is first assessed and the client is usually notified and his concurrence sought. The
contractor is not allowed to take any instructions directly from the client but through the project
manager or the lead consultant. This way the client is always made aware of the financial implications of
changes made and his obligations and he can, therefore, make informed financial decisions. The secret
to good project economic control is good design and project preconstruction activities which guarantee
that all parameters are taken into account and the project budget drawn is realistic. It is also necessary
to involve the client fully in the design and making sure that he understands the design before starting
to construct. It is usual for clients not to understand the design until the project takes shape during
construction and only then does he start to introduce changes which cause variation to the contract and
costs increase. Ridiculous cost overruns have been experienced in many public projects leading to their
abandonment before completion when the cost goes way beyond what the investor can afford.
Conclusions and Recommendations Production planning is necessary to ensure efficient use of resources
and realisation of the desired product to the right quality, in programmed time and within the budget.
There is a need to take all factors that may affect the final product into consideration early enough to
avoid unpleasant surprises. More elaborate project production planning is required if the perennial cost
and time overruns experienced currently in the Kenyan construction industry are to be stemmed. It
would be worthwhile to train contractors on matters appertaining to quality control. Professional bodies
such as architectural and engineering associations could take the initiative and organise seminars and
workshops for contractors. It may also be worthwhile to consider making use of ISO9000 as a
requirement for prequalification of contractors for large projects. Property Management Life Cycle
Economy Life of a property is the last stage of a project cycle. A project normally starts with an
identification of a problem or a need by an entity after which the same entity initiates a development
study with a view to confirming the existence of the problem. The next stage, feasibility study, analyses
different alternatives of solving the problem in order to identify the best-suited solution for the problem
in terms of cost and technical viability. Once this has been done designs can be embarked on and finally
the implementation of the project. Peter Kimari Gitau 10–14 Figure 6: Project cycle Life cycle analysis for
a property considers the period from the end of the project construction up to the demolition of the
property. Life cycle analysis can be used as a tool for comparing different investment options by
assessing and evaluating the returns accruing from each option throughout its life. The beauty of life
cycle economy as a projects evaluation tool lies in the fact that it offers an opportunity to carry out long
term economic analyses of capital projects themselves being long term in nature. There are numerous
variables and uncertainties that may affect the economy of a property during its entire life and this
renders it quite difficult to assess a property’s economy over a long period accurately. To take these
variables and uncertainties into account a property should be analysed on a continuous basis to
determine it’s sensitivity to various factors such as change in ownership, inflation, political climate and
decrees, change in property and money markets etc. By so doing one may be in a position to forecast
and make tangible decisions regarding a property. Maintenance Procurement and Planning Structures
not maintained will cease to fulfil their intended functions. Wear and tear will set in immediately after
construction. Also deterioration due to exposure to a variety of natural forces occurs from the moment
the structure is constructed. Regular maintenance, attending to defects while they are still minor, is the
most cost-effective strategy for providing well functioning buildings and will reduce operating costs.
Maintenance can be defined as: work done to keep an existing structure in, or restore it to, a condition
where it can perform its intended function.. Maintenance can be divided into three distinct forms. i.
Preventive maintenance – carried out to a predetermined plan to reduce the risk of failure. It can be
done as: a. scheduled maintenance or preventive maintenance done at regular intervals b. condition-
based maintenance, preventive maintenance done when deemed necessary through regular
inspections. ii. Corrective maintenance, carried out after failure has occurred. (Björn Carlqvist, 1998:5)
iii. Emergency maintenance, necessary immediately to avoid serious consequences. Condition-based and
corrective forms of maintenance are widely practised in Kenya for privately owned residential houses
and most rental residential houses. However for upmarket rental houses the need to keep the facilities
attractive the clientele may be an overriding factor and, therefore, scheduled maintenance is preferred.
A client may have a caretaker or a full maintenance team on full time bases depending on the size of the
property in question and the number of facilities a client may have. Hazina Housing Estate being a rental
property has a caretaker who is Problem Identification Construction Detailed Design Development Study
Feasibility Study Preliminary Design Construction process in Kenya 10–15 based at the Estate and is
answerable to NSSF’s head of the maintenance department. Rapid response to maintenance issues is
necessary for marketability of a rental property and this is the reason why the caretaker is based at the
Estate. Some clients, however, prefer to engage private property managers especially for very large
commercial and office buildings due to the large number of tenants and accounts to be run and
complexity of the maintenance procedures to be carried out. For industrial facilities the preference is to
have in-house routine maintenance departments. The in-house maintenance department carries out the
minor routine repair works, e.g. painting and fixing of fittings, but all the major repair works are
subcontracted. The maintenance of public buildings is the responsibility of the Ministry of Public Works
and Housing. Connection to the Design Property managers are usually better placed when it comes to
advising on matters that may affect economic operation and maintenance of properties by virtue of
their experience in this area. The aspect of property management also provides a strong tool for
enhancing designs since it allows various participants to study the functioning of properties with respect
to their response to the market conditions , suitability of the designs and in particular performance of
different construction materials or equipments. The knowledge of most designers in the field of
managing properties is quite limited and is usually in form of second-hand information from users and
property owners. In Kenya property managers are usually not involved in the designs and only appear
during project closeout to take over the facility. At this stage they may realise so many aspects of the
design that may not agree with what they know best about properties but it is usually too late for
anything to be done. Conclusions and Recommendations Property managers should be incorporated
during designs so as to use their experience to come up with better and more economic building
designs. It would also be prudent to have a more holistic approach to projects by considering the entire
project cycle (see figure 6) as opposed to a piecemeal approach whereby the participants concentrate
on their own areas of operation without considering how the decisions they make will affect the project
in the next stage. Such an approach will ensure that investors end up with better properties that
guarantee value for money and also longer life and low maintenance costs. Observations The Swedish
construction process is characterised by high level of use of computers throughout the entire process.
Also the tendering and contracting are based on specifications and drawings only and bill of quantities
do not form part of these documents which is the case in the Kenya. Mortgage periods of between 40-
50 years in Sweden are about three times longer than those in Kenya which currently stand at between
10-15 years. There are no tenants associations in the Kenyan property market as the law permits people
to buy flats individually without consideration of the land the property is built on. The flat owners
usually agree on a scheme of maintaining the common areas but it is not mandatory. During
construction there is heavy reliance of prefabricated goods in Sweden as opposed to the situation in
Kenya. Construction in Sweden is also dominated by a few very large contractors such as Skanska, PEAB
and NCC whereas in Kenya there are all sort of contractors competing in the same market and there are
no dominant players. This could be an indicator on the level of the maturity of the industry as over time
small players are usually phased out of the market leaving the large ones competing with each other. As
such the suitability of one state of the industry to the country is really an aspect of the state of the
market and the economy since construction industry largely deals with provision of infrastructure
facilities which depend largely on the state of economy.

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