Types Of Construction Contracts In Kenya
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The most common construction contract in Kenya is the traditional contract, which establishes a clear division of responsibilities between the employer and contractor. This type of contract outlines the scope of work, payment schedules, and timelines, offering both parties a straightforward agreement to follow. It ensures that all parties are aware of their obligations and rights, which is crucial in the construction industry. Understanding the types of construction contracts in Kenya can help you select the best option for your specific project.
There are five common types of construction contracts: lump sum (or fixed price), time and materials (T&M), unit price, guaranteed maximum price (GMP), and cost-plus.
Contracts such as FIDIC, NEC, and GCC can be utilized on all types of engineering and construction contracts. The JBCC contract, on the other hand, is limited to building projects. Engineering and construction works contracts are summarized in the FIDIC, NEC, and JBCC series of documents.
Here are five of the most important terms that should be a part of every construction contract. Scope of Work. Clients need to be clear about what a company is going to do for them. ... Payment Obligations. ... Insurance Information. ... Parties to the Agreement and Notice. ... Authority to Make Decisions.
On the Basis of Formation Express Contract. Implied Contract. Quasi Contract. E-Contract.
Lesson Summary. A contract is a legal agreement between two or more parties in which they agree to each other's rights and responsibilities. Offer, acceptance, awareness, consideration, and capacity are the five elements of an enforceable contract.