Contractors operating or willing to undertake construction operations in Kenya are required by law to register through the National Construction Authority (NCA), which is constituted under Act No. 41 of 2011 Laws of Kenya.
National Construction Authority (NCA) is mandated to clear builders and contractors as a way of eliminating rogue contractors in Kenya and malpractices in building and construction. The authority, which has recently started inspecting construction and building projects around the country to ensure high quality of work and close projects posing health risks and collapse hazards, is expected to provide the regulatory framework for registration and renewal of contractors.
Qualification as a contractor in Kenya
1. Register with Registrar of Companies: Each contractor is required to hold a certificate of incorporation from the Registrar of Companies in Kenya. This will mean they register as a legal company in the country as a limited liability, sole proprietorship or as a partnership company.
In this respect, the National Construction Authority will also require that one of the technical directors of the registered company have minimal technical qualification, have skills or possess experience in a field related to construction. All the directors must also forward their CVs to the National Construction Authority.
Valid PIN, VAT and Income Tax compliance certificates, and Bank Account: The contractor applying to operate in Kenya must also prove tax compliance by means of submitting these documents to National Construction Authority (NCA). The bank account should be opened under name of the contractor company and evidence for the bank account is required.
Foreign contractors are issued with permission to operate for a specific period of time and will be required to prove that they are in the country for that given to undertake a project. They should not undertake another project after the one specified or targeted is completed and they will be required to launch an affidavit with the authority that this will not happen.
Foreign contractors willing to operate in Kenya are also required to submit a commitment to transfer skills not with locals and as can be determined by National Construction Authority from time to time.
A Certificate of Registration is issued on registration as a contractor in Kenya.
Contractor classification/grades
NCA regulations allow a contractor to register in one or more categories according to class of construction works to be undertaken.
NCA1: Unlimited contract value: which has various classes: Unlimited contract value [Contractors – Building] Unlimited contract value [Specialist Contractors] Unlimited contract value [Roads and other Civil Works]
NCA2: Up to 500, 000, 000 [Contractors – Building], Up to 250, 000, 000 [Specialist Contractors], Up to 750, 000, 000 [Roads and other Civil Works].
NCA3: Up to 300, 000, 000 [Contractors – Building] Up to 150, 000, 000 [Specialist Contractors] Up to 500, 000, 000 [Roads and other Civil Works]
NCA4: Up to 200, 000, 000 [Contractors – Building] Up to 100, 000, 000 [Specialist Contractors] Up to 300, 000, 000 [Roads and other Civil Works]
NCA5: Up to 100, 000, 000 [Contractors – Building] Up to 50, 000, 000 [Specialist Contractors] Up to 200, 000, 000 [Roads and other Civil Works]
NCA6: Up to 50, 000, 000 [Contractors – Building] Up to 20, 000, 000 [Specialist Contractors] Up to 100, 000, 000 [Roads and other Civil Works]
NCA7: Up to 20, 000, 000 [Contractors – Building] Up to 10, 000, 000 [Specialist Contractors] Up to 50, 000, 000 [Roads and other Civil Works]
Registration fees
Local contractors in Kenya will be required to pay a fee of Ksh. 10, 000 – 50, 000 depending on category in order to register. License renewal costs are valued at between Ksh. 5, 000 and Ksh. 10, 000. Between Ksh. 5, 000 and 10, 000 will be required for annual renewal of license.
Foreign contractors willing to register with National Construction Authority to operate in Kenya are required to pay a registration fee of Ksh. 100, 000 and must undertake only tenders they win. Those registering under a temporary registration will need to commit to sub-contracting “not less that 30% of the value” of contract to local contractors.
Foreign contractors are not cleared for the NCA1 category, in an attempt to protect local contractors from foreign companies.
The application documents are available from NCA website.
The Kinyerezi 1 electricity plant which is a dual-gas and jet fuel-plant is on its way to completion and once the transmission lines are connected, 150MW of electricity will be tested.
Tanesco Project Manager, Mr. Simon Jilima confirmed the reports and said that currently the contractors involved are working on their final touches.
He further pointed out that for electricity generation, the Kinyerezi 1 plant will function using both gas and jet fuel but this will majorly depend on the availability of natural gas from the Southern part of Tanzania.
“We will start with fuel but later after the gas reaches the plant we will switch to gas as well,” Mr Jilima said.
However, the Plant Manager of Kinyerezi 1, Mr. Stephen Manda said that they are facing a few challenges of scarcity of water but they might consider drilling a well or using sea water after desalination.
After the commencement of generation of electricity at Kinyerezi 1, the plant will shift to a combine cycle using steam to run turbines for better electricity generation.
The project costs for the Kinyerezi I power plant amount to US$ 183m and the funds for the construction have been provided by the government through TANESCO.
The project is being implemented by the Jacobsen Electro Company from Norway.
The implementation plans for the proposed and revised model cities for the Ikoyi/Victoria Island and Agege/Ifako Ijaye has already been approved by the State Government of Lagos, Nigeria. This was revealed by Toyin Ayinde, the Physical Planning and Urban Development Commissioner during the signing ceremony for the implantation approval plan.
The information will be gazetted to legalize the approval by the State Government. However, the model city of Ikoyi-Victoria Island was proposed by the Atlantic Ocean together with the Eko Atlantic City. The proposal includes the intra-city cable car, shuttle bus routes and the mono rail within the city for a completion period of 20years since 2013.
Similarly, the Agege Ifako-Ijaye model city involves an Overpass at Fagba level crossing; park and walk; bridge and transport hall at Agege. However, according to Commissioner Ayinde, the State Government of Lagos has embraced the development plan that aims at creating order in the State. According to his description, once implementation is focused towards the projects, the GDP of the States will definitely go up due to steady growth and productivity in the respective states.
The Opume-Okoroba Road project measurong 9.7km in length is said to have never kicked off since the contract was awarded to the Kakatar Ce Limited 3 years ago. The road project will cost a total cost of US$50.51m and the road will lie within the Bayelsa East Senatorial District.
However the contractor company has attributed the Opume-Okoroba Road project delay due to poor assessments and proposal concerning the Bill of Engineering Measurement and Evaluation (BEME) which is speculated to have been neglected by the Niger Delta Development Commission (NDDC). This is according to the company’s Brand Manager statement Mr. Austin Ekeinde.
However, last year’s allegations rumored that the construction firm abandoned the project despite the fact that they won the contract of US$50.51m, something which Mr. Ekeinde denies and cleared up the air by explaining that the reason as to why the project construction was delayed is due to incompetent engineering designs, poor drawings and coordinates issued by the NDDC. He further says that the contract was left under their responsibility with no significant engineering design and poor drawings. He is currently urging the NDDC to issue the required coordinates for the project. In fact, he said, the bill offered laterite in place of sand filling. Among the requirement is the sand-cement stabilization intended to be used as sub-base.
Proving its commitment in delivering well done job, the construction company went ahead and cleared all the trees grown along the road corridors to a total length of 9.6km. The company also did dredging and haulage of sand to a stretch length of 2km, stabilizing with sand-cement and stone-base.
WEISSENHORN/GERMANY, June 8, 2015 – Renovation or construction work on existing buildings offers great challenges for the stakeholders. Formwork and scaffolding technology provider Peri offers unique solutions for different situations in order to address these challenges.
Nature and diverse number of tasks involved in modernization and renovation work in existing buildings pose a number of challenges to construction companies. In such structures, work is carried out in very confined spaces within the existing structures, which in turn increases the risk potential. Hardly any space is available for the installation of equipment as well as material storage, and there is no possibility to use heavy cranes. In order to be able to work quickly even in such cramped conditions, the equipment used should be easy to install and move, preferably by hand. As a rule, one needs supporting formwork concepts and working platforms, which are adapted specifically to suit all geometric and structural requirements. Peri claims that systems provided by the company can be tailored according to requirements in order to "fit like a glove" in such situations.
New sites bring on fresh challenges
During the renovation of a fire station in Paris, slabs with different thicknesses positioned at different heights in the building had to be realized – without the use of a crane. For this, Peri provided a very economical solution (Skydeck panel slab formwork), which allowed early striking and thus reduced material requirements on the construction site to an absolute minimum. The Skydeck elements are made of aluminum and have a maximum weight of 15 kg, allowing an installation by hand.
In another instance, during the renovation and modernization work at the west wing of the Natural History Museum in Karlsruhe, Peri engineers supported the complex museum reconstruction with a comprehensive formwork and scaffolding solution from a single source. A Variokit framework construction supported the historical west facade while the old wing behind this was demolished. A replacement tract was formed and concreted conforming with the highest architectural concrete demands poured – all this during normal business operations.
Adaptable for all requirements
Peri modular scaffolding with metric grid dimensions can be adjusted to accommodate large loads and the most complex geometries thus providing safe working scaffold for a wide range of tasks – whether the refurbishment of the Maritime Museum in Tallinn, Estonia, which is housed in a 100-year-old concrete domed structure from the Tsarist era, or for restoration of the Gothic-style St. Vitus Cathedral in Prague, built in 1344.
Building work during ongoing operations
Public buildings, in particular, remain partly or completely open while measures are carried out which means short construction periods are required. In order to manage the high work rates and at the same time ensuring that no persons are put at risk, the systems must guarantee maximum safety. Thanks to a solution developed by Peri Canada engineers, one of the largest shopping malls in the country – the seven-storey Eaton Centre in Toronto – could be extensively modernized and still remain open for the complete two-year refurbishment period. After the fast and safe erection phase, the Peri Up Rosett scaffolding solution fitted the inside geometry of the centre like a second skin. Through the use of large advertising banners, this remained largely hidden from passers-by. By means of integrated working platforms and access points, all levels could be easily reached by the craftsmen to ensure fast and reliable realization of the tasks.
Bi
Construction at Asrin Property Developers’ Azure on the Bay development at Big Bay is well under way, and units are now 80% sold out, says commercial director for Asrin, Shiraaz Hassan.
Foundations of the basement and supporting columns are done, and the basement was completed at the end of May.
Asrin’s construction director, Shiraz Onia, says that they are fully on schedule for completion and handover of the units by July next year.
“The market has responded very well to two factors, the first being the beginning of construction, and the second is the renewed confidence in the property market,” said Hassan.
“We put this down to the high demand for stock below R2 million, particularly in the Big Bay Waterfront node, where people have realised that this is possibly the last chance to get the unit they want while the prices are as good as they are. Banks, in addition, are realising the value here, with all four major banks willing to front mortgages without problems,” said Hassan.
The unsold units have now increased in price, which is justified by the increases in materials such ads steel and cement, and also that the prices here have not been risen since the initial launch three years ago, said Hassan. The banks have supported the new pricing on the 20% of units still to be sold.
Many aspects make this development appealing, he said, but the unique aspect of having a central communal courtyard in which to enjoy the outdoors year round and the double security are possibly the two selling features here.
“If one compares other beachfront areas that are popular,” said Hassan, “the value for money at Azure becomes truly evident. Camps Bay property is currently selling for approximately treble what Azure is selling for per m². We predict more and more foreign investors buying in here, which is already happening, and prices will eventually be driven up by the demand.”
SA Construction News
Costain, Skanska, Atkins and CH2M Hill have secured significant packages of work on the £1.5Bn A14 upgrade in Cambridgeshire, it was announced this morning.
Two construction packages worth a total of £598M will be carried out by a Costain Skanska joint venture. The first of these covers widening the A1 from Alconbury towards the East Coast Mainline and the second involves building the new Huntingdon Southern Bypass towards Swavesey. Pre-construction work by the joint venture is worth £1M.
Meanwhile a joint venture of Atkins and CH2M Hill has been awarded the detailed design contract, valued at £35.3M. The initial development phase is worth £19.6M and the joint venture will, when the scheme is given the go ahead, provide design support and site assurance services worth £15.7M.
Contracts have been awarded under Highways England’s Collaborative Delivery Framework.
Two construction packages are still to be awarded. The first involves widening the existing A14 from Swavesey towards Milton, north of Cambridge, and an announcement about this package will be made later this summer. The second remaining package is for the demolition of a viaduct over the East Coast Mainline at Huntingdon, which will be tendered in 2019.
Main construction work on the A14 upgrade is due to start late next year, subject to the outcome of a development consent order examination by the Planning Inspectorate and a decision on that application from the Transport Secretary. The new bypass and widened A14 are set to open to traffic in 2020.
Highways England director for complex infrastructure Chris Taylor said: “The A14 Cambridge to Huntingdon improvement scheme is the first major award under the Collaborative Delivery Framework and is to enable delivery of an up to £1.5Bn investment of national importance.
“While we appreciate our planning application is yet to be fully examined by the Planning Inspectorate and we are yet to receive permission to start construction, these appointments will give us the support we need to prepare for works getting underway on time and to budget.”
Costain chief executive Andrew Wyllie said: “The A14 is a strategically vital transport corridor and we are delighted to have secured the development stage of this major improvement project.”
Skanska operations director Glennan Blackmore added: “We are extremely proud to be part of the team that will deliver significant infrastructure improvement to the strategic roads network, the region and the UK economy.”
Atkins' Transportation division’s group managing director Philip Hoare said “Along with our partner CH2M, we are delighted to have been awarded the design contract for the scheme and look forward to providing our expertise and innovation to support Highways England in the successful delivery of this important project.”
CH2M’s director of highways and bridges Peter McDermott added: “The project will bring about massive improvements to the road network in Cambridgeshire and provide a major boost to the economy in East Anglia.”
CIHT NEWS
Return of the Conservatives to Government represented “a massive vote of confidence” in High Speed 2, according to Patrick McLoughlin who has delivered his first speech since being reappointed Transport Secretary.
Mr McLoughlin was in Leeds on Monday to confirm that high speed rail and development of the Northern Powerhouse are uppermost in the Government’s thinking.
“HS2 will change the transport and economic architecture of the north,” he said, adding that the full ‘Y’ network from London to Birmingham, Manchester and Leeds will be built, with construction starting in just two years.
Mr McLoughlin went on to say that work is under way to look into the case for speeding up construction of the Sheffield to Leeds section of HS2. But he did not mention a proposed extension to Scotland, which TP Weekly News revealed last week may be dropped.
The Transport Secretary did say that Government is moving forward with plans for a High Speed 3 from Liverpool in the west to Hull in the east. This project, he said, “will slash journey times, provide a substantial boost to capacity and help bind the north together as a single, powerful economic force.” He added: “We believe in the power of transport to change things.”
He went on to say that £13Bn of Government funding will be invested to help transform transport infrastructure in the north over the next five years. And he said that by the autumn, Transport for the North – the body established by Government to work with it on delivering a Northern Transport Strategy – will have a new independent chair.
CIHT NEWS
Gatwick airport has upped the stakes in the battle over where a new runway should be sited in the South East by claiming that expansion at Heathrow would be “unlawful”.
The West Sussex airport says that a third runway in west London would worsen existing poor air quality conditions and lead to further delay in meeting legally binding limits.
It says that a recent Supreme Court ruling that action must be taken by Government to cut air pollution has brought the issue of air quality into renewed focus.
Gatwick did not rule out the possibility of High Court action when challenged about what its next step would be in the event of Heathrow being approved to expand.
Gatwick airport chief executive Stewart Wingate said: “Air quality concerns have prevented Heathrow expansion in the past and the air quality in west London continues to exceed the legal limits and is forecast to do so beyond 2030.
“The country cannot afford to make the wrong choice and risk years of delay on a project that is eventually halted because of its unacceptable impact.”
Heathrow sustainability & environment director Matt Gorman said: “After three years of extensive consultation, evidence gathering and analysis the Airports Commission has confirmed that Heathrow can expand well within local air quality limits.
“We have worked with local communities and campaign groups and commit to playing our part in meeting local air quality limits.”
Sir Howard Davies’ Airports Commission is expected to deliver its report to Government later this month.
CIHT NEWS
BHP Billiton delivered a sombre warning to global commodity markets that oversupply is very much here to stay.
Tumbling prices are creating a testing environment for commodity producers, while demand is slowing to more routine levels amid a transition in China’s economy away from investment-led growth, the world’s biggest mining company’s Chief Executive Officer Andrew Mackenzie said Wednesday.
“In many markets, recently installed low-cost supply can now be stretched to meet growing demand,” Mackenzie said in a speech in Canberra. “Incremental supply, induced during periods of higher prices, will take longer to absorb and this means over-supply may persist for some time.”
Expansion by the biggest iron ore producers, including BHP and Vale SA, will see a global surplus swell to 215 million tons in 2018 from 45 million this year, UBS Group AG estimates. Teck Resources plans to idle six Canadian coal operations amid a slump in prices and demand.
“The speed at which prices have returned to long run levels for each commodity has varied as a function of the time taken for low cost supply to come to market,” Mackenzie said.
BHP sees the iron ore and metallurgical coal markets as well supplied and won’t allocate significant new investment to the sectors, Mackenzie said last month.
Efforts by thermal and metallurgical coal producers to scale back planned export growth mean prices will probably rise before iron ore, according to Melbourne-based Morgan Stanley analyst Joel Crane. Supercycle Highs
“We don’t expect prices to return to supercycle highs,” Crane said by phone. While coal prices have little downside in the medium term, “iron ore is only just now getting supply discipline, so that’s likely got years to go,” he said.
Amid calls for limits on iron ore production and for a parliamentary inquiry into export strategy, Melbourne-based BHP doesn’t see any logic in reducing its output of the steel raw material, he said today.
“It is unproductive for Australia to cut or stall low-cost and profitable supply when the cycle drops,” Mackenzie said in his speech. “It destroys value, penalizes shareholders, customers and employees and disrupts the power of open markets.”
Bloomberg news
Civil engineering contractor Alun Griffiths has secured a £25m package of work on the Swansea Bay Tidal Lagoon project.
The latest order follows Laing O’Rourke’s £200m deal to deliver the lagoon’s 410 metre turbine house and sluice structure block.
Welsh contractor Griffiths will deliver ancillary civil engineering for the project’s public realm works, which includes the breakwater surface, roads, slipways, utilities and landscaping.
Meanwhile, following advanced works and value engineering, a fixed price contract will be signed later this year for the main build.
Tidal Lagoon Swansea Bay has also run tenders for the project’s marine works package, the result of which will be announced shortly.
Further tenders for the construction of a Turbine Assembly Plant in Wales, and for the lagoon’s public realm and buildings work will proceed through the summer.
Roger Evans, Chairman of the Tidal Lagoon Industry Advisory Group, said: “The appointment of Alun Griffiths is a reflection of the developer’s commitment to ensuring that the Wales supply chain is fully able and prepared to realise the economic benefits of this game-changing development.
“Further works packages will be tendered over the coming months and we are encouraged that the other tier one contractors announced so far are being proactive in their engagement with Welsh industry giving us the opportunity to harness the power of this major £1bn investment in Wales.”
Martyn Evans, Executive Director at Alun Griffiths said: “This is a major contract for our business and the lagoon will be an iconic piece of infrastructure for Wales.”
Construction Enquirer