What are liquidated damages?

Liquidated damages are a pre-agreed amount payable by the contractor for each period of delay beyond the completion date, subject to any extensions of time. They should be a genuine pre-estimate of loss.

What is retention in a construction contract?

Retention is a percentage withheld from interim payments as security for defects, usually released in stages at practical completion and at the end of the defects liability period.

Should construction contracts include arbitration?

Many do, because arbitration allows technical disputes to be decided privately by specialists. Some contracts also provide for adjudication or mediation as earlier steps.

Construction Contract Lawyer Kenya

Construction Contract Lawyers in Kenya

Most construction disputes can be traced back to the contract — unclear scope, unrealistic programmes, weak variation procedures or payment terms that do not fit the project's funding.

We draft, review and negotiate construction and consultancy contracts for developers, employers and contractors, so that risk sits where it should before work begins.

When you may need advice

You are appointing a contractor and want the contract reviewed before signing.

You are a contractor asked to accept onerous amendments to a standard form.

You need consultancy agreements for architects, engineers or quantity surveyors.

You want to understand bonds, retention and liquidated damages in your contract.

Standard forms used in Kenya

Kenyan projects commonly use standard forms, including FIDIC contracts on larger and donor-funded projects and the Joint Building Council (JBC) forms on many building projects. Standard forms are a good starting point, but the particular conditions and amendments decide how risk is actually allocated — and those need careful review.

Clauses that matter most

Scope of works, specifications and design responsibility
Contract price, payment certificates and payment timelines
Variations and how they are instructed and valued
Programme, extensions of time and liquidated damages
Retention, performance bonds and advance payment guarantees
Insurance and indemnities
Defects liability and practical completion
Termination and suspension rights
Dispute resolution — adjudication, mediation and arbitration

Regulatory points

Contractors undertaking construction works in Kenya are generally required to be registered with the National Construction Authority, and projects need the relevant development and environmental approvals. We check that the contract structure supports compliance rather than leaving it to chance.

Common risks and mistakes

Starting work on a letter of intent with no signed contract.
Variation procedures that are ignored in practice, leading to disputed claims.
Liquidated damages or bond amounts that do not reflect the real risk.
Payment terms out of step with the employer's financing drawdowns.
Unclear design responsibility between the employer's consultants and the contractor.

Who should seek counsel

Developers and employers appointing contractors
Contractors and subcontractors negotiating terms
Consultants agreeing appointments
Lenders reviewing project contracts

How we work

1Risk reviewWe review the proposed form and amendments against your project and funding.
2Mark-upWe propose changes with clear explanations for each.
3NegotiationWe negotiate with the other party or support your team in negotiations.
4Contract administration supportWe advise on notices, variations and claims during the project.

Advocates for this matter

Trevor Samson Lichuma, CPMManaging Partner

Frequently asked questions

Both are families of standard construction contracts. FIDIC forms are internationally used and common on large and donor-funded projects; JBC forms are Kenyan standard forms widely used on building projects. The right form depends on the project.

Construction & Projects Law Construction disputes Property development Commercial contracts

This page gives general information about Kenyan law and is not legal advice for your situation. Contacting us does not create an advocate–client relationship. Last reviewed 8 Oct 2026.