## Construction Contract for a Residential Property

### Table of Contents

1.  Introduction
2.  Parties
3.  Scope of Work
4.  Materials
5.  Timeframe
6.  Payment
7.  Variations
8.  Insurance
9.  Termination
10.  Dispute Resolution
11.  Force Majeure
12.  Governing Law
13.  Notices
14.  Entire Agreement
15.  Severability
16.  Waiver
17.  Assignment
18.  Confidentiality
19.  Signatures

### Introduction

This Construction Contract ("Contract") is made and entered into on this [Date] by and between:

*   [Name of Owner], residing at [Address of Owner] ("Owner")
*   [Name of Contractor], residing at [Address of Contractor] ("Contractor")

This Contract sets forth the terms and conditions governing the construction of a residential property located at [Address of Property] ("Property").

### Parties

1.  **Owner:** The Owner is the party commissioning the construction of the Property.
2.  **Contractor:** The Contractor is the party responsible for constructing the Property in accordance with the terms of this Contract.

### Scope of Work

1.  The Contractor agrees to construct the Property in accordance with the following:
    *   **Architectural Drawings:** The architectural drawings and specifications provided by the Owner, dated [Date].
    *   **Building Plans:** The approved building plans submitted to and approved by the relevant authorities.
    *   **Specifications:** The detailed specifications for the construction of the Property, attached hereto as Exhibit A.
2.  The Scope of Work includes, but is not limited to, the following:
    *   [List of specific construction activities, e.g., foundation work, framing, roofing, plumbing, electrical, painting, landscaping]
3.  The Contractor shall be responsible for obtaining all necessary permits and licenses required for the construction of the Property.

### Materials

1.  The Contractor shall use materials of the quality and specifications as specified in the Contract Documents.
2.  The Owner shall have the right to approve all materials used in the construction of the Property.
3.  The Contractor shall provide the Owner with a list of all materials to be used in the construction of the Property, along with their respective specifications and sources.

### Timeframe

1.  The Contractor shall commence construction of the Property on [Start Date] and complete the construction within [Number] days from the commencement date.
2.  The Contractor shall provide the Owner with a detailed construction schedule, outlining the milestones and deadlines for each stage of the construction process.
3.  The Owner shall have the right to extend the completion date for a reasonable period of time if the Contractor is delayed due to circumstances beyond its reasonable control, such as acts of God, government regulations, or labor strikes.

### Payment

1.  The Owner shall pay the Contractor the total sum of [Amount] for the construction of the Property.
2.  The payment shall be made in accordance with the following schedule:
    *   [Percentage] upon signing of this Contract.
    *   [Percentage] upon completion of [Milestone].
    *   [Percentage] upon completion of [Milestone].
    *   [Percentage] upon completion of the Property.
3.  The Contractor shall submit invoices to the Owner for each payment milestone.
4.  The Owner shall pay the invoices within [Number] days of receipt.

### Variations

1.  Any changes to the Scope of Work shall be made in writing and signed by both parties.
2.  The Contractor shall provide the Owner with a detailed cost estimate for any proposed variations.
3.  The Owner shall have the right to approve or reject any proposed variations.
4.  Any agreed-upon variations shall be incorporated into this Contract as an amendment.

### Insurance

1.  The Contractor shall maintain comprehensive insurance coverage for the duration of the construction project, including:
    *   **Workers' Compensation Insurance:** To cover any injuries sustained by the Contractor's employees during the construction process.
    *   **Liability Insurance:** To cover any third-party claims arising from the Contractor's negligence or breach of contract.
    *   **Property Insurance:** To cover any damage to the Property during the construction process.
2.  The Contractor shall provide the Owner with certificates of insurance evidencing the coverage described above.

### Termination

1.  This Contract may be terminated by either party for any of the following reasons:
    *   **Material Breach:** If the other party materially breaches this Contract and fails to cure the breach within [Number] days of written notice.
    *   **Insolvency:** If the other party becomes insolvent or bankrupt.
    *   **Force Majeure:** If the performance of this Contract is prevented or delayed due to circumstances beyond the reasonable control of either party.
2.  Upon termination of this Contract, the Contractor shall cease all work on the Property.
3.  The Owner shall be entitled to recover any damages incurred as a result of the Contractor's breach of contract.

### Dispute Resolution

1.  Any dispute arising out of or relating to this Contract shall be settled amicably through negotiation between the parties.
2.  If the parties are unable to reach an amicable settlement, the dispute shall be referred to arbitration in accordance with the Arbitration Act, Cap 4 of the Laws of Kenya.
3.  The arbitration shall be conducted in [Location] and the language of the arbitration shall be [Language].

### Force Majeure

1.  Neither party shall be liable for any delay or failure to perform its obligations under this Contract due to events beyond its reasonable control, including but not limited to:
    *   Acts of God, such as earthquakes, floods, or storms.
    *   War, terrorism, or civil unrest.
    *   Government regulations or restrictions.
    *   Labor strikes or lockouts.
2.  The party affected by a Force Majeure event shall promptly notify the other party in writing of the event and its anticipated duration.

### Governing Law

This Contract shall be governed by and construed in accordance with the laws of Kenya.

### Notices

All notices and other communications under this Contract shall be in writing and shall be deemed to have been duly given when delivered personally, sent by registered mail, or sent by email to the addresses set forth below:

*   **Owner:** [Address of Owner]
*   **Contractor:** [Address of Contractor]

### Entire Agreement

This Contract constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.

### Severability

If any provision of this Contract is held to be invalid or unenforceable, such provision shall be struck from this Contract and the remaining provisions shall remain in full force and effect.

### Waiver

No waiver by either party of any breach of this Contract shall be deemed a waiver of any subsequent breach.

### Assignment

This Contract may not be assigned by either party without the prior written consent of the other party.

### Confidentiality

The parties agree to keep confidential all information disclosed to each other pursuant to this Contract, except to the extent such information is required to be disclosed by law.

### Signatures

IN WITNESS WHEREOF, the parties have executed this Contract as of the date first written above.

**Owner:**

[Signature]

[Printed Name]

**Contractor:**

[Signature]

[Printed Name]

**Exhibit A: Specifications**

[Attach detailed specifications for the construction of the Property]

**Note:** This is a sample construction contract and may not be suitable for all situations. It is recommended that you consult with an attorney to ensure that the contract is appropriate for your specific needs.


## Construction Contract for a Residential Property

This Construction Contract ("Contract") is made and entered into on this [Date] day of [Month], [Year], by and between:

**[Your Full Name]** residing at [Your Address], hereinafter referred to as "Owner," and

**[Contractor Full Name]** residing at [Contractor Address], hereinafter referred to as "Contractor."

**WHEREAS,** Owner desires to have certain construction work performed on the property located at [Property Address] ("Property"), and Contractor desires to perform such work;

**NOW, THEREFORE,** in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

### 1. Scope of Work

1.1. Contractor agrees to perform all the work necessary to construct a [Type of Residential Property] on the Property, in accordance with the plans and specifications attached hereto as Exhibit A ("Plans and Specifications").

1.2. The Scope of Work includes, but is not limited to, the following:

* [List of Construction Work]

1.3. The Scope of Work does not include the following:

* [List of Excluded Work]

### 2. Time of Completion

2.1. Contractor agrees to commence work on the Property on [Start Date] and to complete all work in accordance with the Plans and Specifications within [Number] days from the commencement date.

2.2. The time for completion of the work is of the essence.

### 3. Payment

3.1. Owner agrees to pay Contractor the sum of [Amount] (Ksh. [Amount in Kenyan Shillings]) for the performance of the work in accordance with the Plans and Specifications.

3.2. Payment shall be made in the following installments:

* [Percentage] upon execution of this Contract;
* [Percentage] upon completion of [Milestone];
* [Percentage] upon completion of [Milestone];
* [Percentage] upon completion of [Milestone];
* [Percentage] upon final completion of the work and issuance of a Certificate of Completion by the Architect.

3.3. All payments shall be made by Owner to Contractor within [Number] days of the issuance of a written invoice by Contractor.

3.4. Owner shall be entitled to withhold payment for any work that is not performed in accordance with the Plans and Specifications.

### 4. Materials

4.1. Contractor shall provide all materials necessary for the performance of the work in accordance with the Plans and Specifications.

4.2. All materials shall be of good quality and shall be approved by Owner prior to their use.

4.3. Contractor shall be responsible for the proper storage and handling of all materials on the Property.

### 5. Labor

5.1. Contractor shall provide all labor necessary for the performance of the work in accordance with the Plans and Specifications.

5.2. All labor shall be skilled and experienced in the performance of the work.

5.3. Contractor shall be responsible for the safety of all workers on the Property.

### 6. Permits and Licenses

6.1. Contractor shall be responsible for obtaining all necessary permits and licenses for the performance of the work.

6.2. Contractor shall provide Owner with copies of all permits and licenses obtained.

### 7. Insurance

7.1. Contractor shall maintain the following insurance policies during the performance of the work:

* Workers' Compensation Insurance;
* General Liability Insurance with a minimum limit of [Amount] (Ksh. [Amount in Kenyan Shillings]);
* Property Damage Insurance with a minimum limit of [Amount] (Ksh. [Amount in Kenyan Shillings]).

7.2. Contractor shall provide Owner with certificates of insurance evidencing the coverage required by this Section.

### 8. Warranties

8.1. Contractor warrants that all work performed under this Contract shall be free from defects in materials and workmanship for a period of [Number] years from the date of completion of the work.

8.2. Contractor shall be responsible for repairing or replacing any defective work within a reasonable time after notification by Owner.

### 9. Changes to the Work

9.1. Owner may request changes to the work, provided that such changes are in writing and are approved by Contractor.

9.2. Any changes to the work shall be subject to a change order, which shall be signed by both parties.

9.3. The change order shall specify the nature of the change, the cost of the change, and the time for completion of the change.

### 10. Termination

10.1. This Contract may be terminated by either party for any of the following reasons:

* Material breach of this Contract by the other party;
* Failure of the other party to perform its obligations under this Contract;
* Bankruptcy or insolvency of the other party.

10.2. Upon termination of this Contract, Owner shall be entitled to recover all costs incurred in completing the work, including any costs incurred in hiring a replacement contractor.

10.3. Contractor shall be entitled to recover all costs incurred in performing the work up to the date of termination, including any costs incurred in mobilizing to the Property.

### 11. Dispute Resolution

11.1. Any dispute arising out of or relating to this Contract shall be settled by binding arbitration in accordance with the Arbitration Act, [Year].

11.2. The arbitration shall be conducted in [City, Kenya] and the language of the arbitration shall be English.

11.3. The decision of the arbitrator shall be final and binding on both parties.

### 12. Entire Agreement

12.1. This Contract constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.

### 13. Governing Law

13.1. This Contract shall be governed by and construed in accordance with the laws of the Republic of Kenya.

### 14. Notices

14.1. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by overnight courier service, addressed as follows:

If to Owner:

[Your Full Name]
[Your Address]

If to Contractor:

[Contractor Full Name]
[Contractor Address]

### 15. Severability

15.1. If any provision of this Contract is held to be invalid or unenforceable, such provision shall be struck from this Contract and the remaining provisions shall remain in full force and effect.

### 16. Waiver

16.1. No waiver by either party of any breach of this Contract shall be deemed to be a waiver of any subsequent breach.

### 17. Binding Effect

17.1. This Contract shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

**IN WITNESS WHEREOF,** the parties have executed this Contract as of the date first written above.

**Owner:**

[Your Signature]

[Your Printed Name]

**Contractor:**

[Contractor Signature]

[Contractor Printed Name]

### Exhibit A: Plans and Specifications

[Attach Plans and Specifications]

### Case Laws

**Relevant Case Laws:**

* **Mombasa Cement Ltd v. M.S. Patel & Sons Ltd (1974) EA 144:** This case established the principle that a construction contract must be interpreted in a way that gives effect to the intentions of the parties. The court held that the parties' intentions should be determined from the language of the contract, the surrounding circumstances, and the conduct of the parties.
* **Kenya Commercial Bank Ltd v. Trust Bank Ltd (2003) 1 EA 1:** This case emphasized the importance of clear and unambiguous language in construction contracts. The court held that where the language of a contract is ambiguous, it should be interpreted against the party who drafted it.
* **Kenya Power & Lighting Co. Ltd v. East African Power & Lighting Co. Ltd (1973) EA 1:** This case highlighted the importance of adhering to the terms of a construction contract. The court held that a party who deviates from the terms of a contract without the consent of the other party may be liable for breach of contract.

**Why these case laws are relevant:**

These case laws provide guidance on the interpretation and enforcement of construction contracts in Kenya. They emphasize the importance of clear and unambiguous language, the need to adhere to the terms of the contract, and the principle of interpreting contracts in a way that gives effect to the intentions of the parties.

**How these case laws can be applied:**

* **Mombasa Cement Ltd v. M.S. Patel & Sons Ltd (1974) EA 144:** This case can be used to interpret the terms of the construction contract in a way that reflects the intentions of the Owner and Contractor. For example, if there is a dispute about the scope of work, the court may refer to this case to determine the parties' intentions based on the language of the contract, the surrounding circumstances, and the conduct of the parties.
* **Kenya Commercial Bank Ltd v. Trust Bank Ltd (2003) 1 EA 1:** This case can be used to ensure that the language of the construction contract is clear and unambiguous. For example, the contract should clearly define the scope of work, the payment terms, and the time for completion.
* **Kenya Power & Lighting Co. Ltd v. East African Power & Lighting Co. Ltd (1973) EA 1:** This case can be used to emphasize the importance of adhering to the terms of the construction contract. For example, if the Contractor deviates from the Plans and Specifications without the Owner's consent, the Owner may be able to terminate the contract and seek damages.

### Sources:

* [The Arbitration Act, 1995](http://www.kenyalaw.org:8181/exist/kenyalex/actview.xql?actid=CAP.%204)
* [Mombasa Cement Ltd v. M.S. Patel & Sons Ltd (1974) EA 144](http://www.kenyalaw.org:8181/exist/kenyalex/caseview.xql?caseid=1974%20EA%20144)
* [Kenya Commercial Bank Ltd v. Trust Bank Ltd (2003) 1 EA 1](http://www.kenyalaw.org:8181/exist/kenyalex/caseview.xql?caseid=2003%201%20EA%201)
* [Kenya Power & Lighting Co. Ltd v. East African Power & Lighting Co. Ltd (1973) EA 1](http://www.kenyalaw.org:8181/exist/kenyalex/caseview.xql?caseid=1973%20EA%201)

### TLDR:

This Construction Contract outlines the agreement between the Owner and Contractor for the construction of a residential property. It covers the scope of work, time of completion, payment terms, materials, labor, permits and licenses, insurance, warranties, changes to the work, termination, dispute resolution, and other relevant provisions.

### Conclusion:

This Construction Contract is a legally binding agreement between the Owner and Contractor. It is important for both parties to carefully review the terms of the contract and to ensure that they understand their rights and obligations. If there are any questions or concerns, it is advisable to seek legal advice from a qualified attorney. 


### Construction Contract for a Residential Property

---

#### Table of Contents

1. Introduction
2. Parties Involved
3. Scope of Work
4. Contract Price and Payment Terms
5. Duration and Completion
6. Changes to the Work
7. Permits and Approvals
8. Insurance and Liability
9. Warranties and Guarantees
10. Dispute Resolution
11. Termination
12. Miscellaneous Provisions
13. Signatures

---

#### 1. Introduction

This Construction Contract ("Contract") is made and entered into on [Date], by and between [Owner's Full Name], residing at [Owner's Address] ("Owner"), and [Contractor's Full Name], with a principal place of business at [Contractor's Address] ("Contractor"). This Contract sets forth the terms and conditions under which the Contractor agrees to perform certain construction services for the Owner.

#### 2. Parties Involved

- **Owner:** [Owner's Full Name], residing at [Owner's Address].
- **Contractor:** [Contractor's Full Name], with a principal place of business at [Contractor's Address].

#### 3. Scope of Work

The Contractor agrees to perform the following work ("Work") on the residential property located at [Property Address] ("Property"):

- Construction of a [describe the type of residential property, e.g., single-family home, duplex, etc.].
- Specific tasks include [list specific tasks, e.g., foundation work, framing, roofing, plumbing, electrical, etc.].
- All work shall be performed in accordance with the plans and specifications provided by [Architect/Designer Name], dated [Date].

#### 4. Contract Price and Payment Terms

- **Contract Price:** The total contract price for the Work is Ksh [Total Amount].
- **Payment Schedule:** Payments shall be made as follows:
  - Initial deposit of Ksh [Amount] upon signing this Contract.
  - Progress payments of Ksh [Amount] upon completion of [specific milestones, e.g., foundation, framing, roofing, etc.].
  - Final payment of Ksh [Amount] upon substantial completion of the Work and acceptance by the Owner.

#### 5. Duration and Completion

- **Commencement Date:** The Work shall commence on [Start Date].
- **Completion Date:** The Work shall be substantially completed by [Completion Date].
- **Delays:** If the Contractor is delayed at any time in the progress of the Work by any act or neglect of the Owner, or by any changes ordered in the Work, or by labor disputes, fire, unusual delay in deliveries, adverse weather conditions, or any other causes beyond the Contractor's control, the Completion Date shall be extended by a reasonable period of time.

#### 6. Changes to the Work

- **Change Orders:** Any changes to the Work, including additions, deletions, or modifications, must be agreed upon in writing by both the Owner and the Contractor. The cost and time for such changes shall be adjusted accordingly.

#### 7. Permits and Approvals

- **Permits:** The Contractor shall obtain all necessary permits and approvals required for the performance of the Work.
- **Compliance:** The Contractor shall comply with all applicable laws, regulations, and building codes.

#### 8. Insurance and Liability

- **Insurance:** The Contractor shall maintain general liability insurance and workers' compensation insurance in amounts sufficient to cover any potential claims arising from the performance of the Work.
- **Liability:** The Contractor shall be responsible for any damage to the Property caused by the Contractor's negligence or willful misconduct.

#### 9. Warranties and Guarantees

- **Workmanship Warranty:** The Contractor warrants that all Work shall be performed in a good and workmanlike manner and in accordance with industry standards.
- **Materials Warranty:** The Contractor warrants that all materials used in the Work shall be new and of good quality.
- **Warranty Period:** The warranties provided herein shall be valid for a period of [Warranty Period, e.g., one year] from the date of substantial completion of the Work.

#### 10. Dispute Resolution

- **Mediation:** Any disputes arising under this Contract shall first be submitted to mediation.
- **Arbitration:** If mediation fails to resolve the dispute, the parties agree to submit the dispute to binding arbitration in accordance with the rules of the [Arbitration Institution, e.g., Chartered Institute of Arbitrators, Kenya Branch].

#### 11. Termination

- **Termination by Owner:** The Owner may terminate this Contract for cause if the Contractor fails to perform the Work in accordance with the terms of this Contract.
- **Termination by Contractor:** The Contractor may terminate this Contract for cause if the Owner fails to make payments as required by this Contract.

#### 12. Miscellaneous Provisions

- **Entire Agreement:** This Contract constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.
- **Amendments:** This Contract may be amended only by a written agreement signed by both parties.
- **Governing Law:** This Contract shall be governed by and construed in accordance with the laws of the Republic of Kenya.
- **Severability:** If any provision of this Contract is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

#### 13. Signatures

IN WITNESS WHEREOF, the parties hereto have executed this Construction Contract as of the day and year first above written.

---

**Owner:**

__________________________  
[Owner's Full Name]  
[Owner's Address]  
[Date]

**Contractor:**

__________________________  
[Contractor's Full Name]  
[Contractor's Address]  
[Date]

---

### Conclusion

This Construction Contract outlines the terms and conditions under which the Contractor will perform construction services for the Owner. It includes details on the scope of work, payment terms, duration, changes, permits, insurance, warranties, dispute resolution, termination, and miscellaneous provisions. Both parties should review and understand the contract thoroughly before signing.

### TLDR

A detailed Construction Contract for a residential property in Kenya, covering all essential aspects such as scope of work, payment terms, duration, changes, permits, insurance, warranties, dispute resolution, and termination.

---

Sources:
- [Bon-Arch: Agreement and Conditions of Contract for Building Works](https://www.bonarch.co.ke/wp-content/uploads/2016/08/JBC-Std-Form-of-Contract.pdf)
- [Kenya Law Reports: Law of Contract Act](http://www.kenyalaw.org:8181/exist/rest//db/kenyalex/Kenya/Legislation/English/Acts%20and%20Regulations/L/Law%20of%20Contract%20Act%20Cap.%2023%20-%20No.%2043%20of%201960/docs/LawofContractAct43of1960.pdf)
- [Construction Kenya: Cost of Building a House in Kenya](https://www.constructionkenya.com/1009/cost-building-house-kenya/)
- [Knight Frank: Guide to Buying Property in Kenya](https://content.knightfrank.com/research/1355/documents/en/kenya-buying-guide-2017-5010.pdf)

Write a Construction Contract for a residential property.

Ask a lawyer: Write a Construction Contract for a residential property.

Ask a lawyer:
Write a Construction Contract for a residential property.