7 Contractor Tips From Top Construction Companies in Kenya

The Kenyan construction industry is booming, with an annual value exceeding Kshs 1.7 trillion according to the Kenya National Bureau of Statistics. Banks advance over Kshs 520 billion in real estate financing annually, the government spends billions on infrastructure, and private developers continue to put up thousands of new buildings across the country.

With over 30,000 registered contractors competing for these opportunities, the question is: what sets the successful ones apart from the struggling ones?

We’ve analyzed the strategies of the most successful construction companies in Kenya to bring you these 7 contractor tips. Whether you’re a building contractor, road contractor, or design-build firm, these insights will help you win more jobs, maximize profits, and build a reputation for excellence.

Tip #1: Pursue Jobs Governed by Standard Forms of Contract

Many contractors operate with a “scarcity mindset,” taking on any available job without evaluating the risks. This is a costly mistake.

The Smart Approach: Successful construction companies are selective. They pursue projects governed by standard forms of contract such as:

  • JBCC (Joint Building Contracts Council) – widely used in private sector

  • FIDIC (International Federation of Consulting Engineers) – common in large infrastructure projects

  • PPRA (Public Procurement Regulatory Authority) – used for government projects

Why This Matters:

Standard contracts are balanced and impartial, having been developed by bodies representing all industry stakeholders. They clearly define:

  • Payment terms and procedures

  • Dispute resolution mechanisms

  • Rights and obligations of all parties

  • Risk allocation

“Kenya will always have enough jobs for all its 30,000 registered contractors. You can afford to be selective.”

Tip #2: Know Your Contractual Rights

Construction contracting is as much a legal exercise as it is a technical one. Your success depends not only on your building skills but also on your contract administration framework.

The Smart Approach: Every project needs a dedicated contract administrator. This professional ensures you understand:

  • ✅ When and how to apply for payment certificates

  • ✅ How to prompt employers to make timely payments

  • ✅ Penalties you can charge for defaults

  • ✅ Circumstances warranting contract price review

  • ✅ When and how to suspend works or terminate contracts

  • ✅ How to handle disputes

Real-World Application:

During the post-COVID inflation period, many contractors successfully negotiated pay rises using clauses in the standard forms of contract that allow for price fluctuations. If you don’t know your rights, you leave money on the table.

Tip #3: The Lowest Bid Doesn’t Guarantee the Job

Many contractors believe that being the lowest bidder is the surest path to winning contracts. This is a myth that keeps many contractors trapped in a cycle of low profits.

The Smart Approach: Most reputable clients—corporations, government bodies, and serious real estate developers—use a weighted evaluation system that considers three criteria:

Evaluation Stage What They Check
Pre-Qualification NCA registration, tax compliance, KRA PIN, etc.
Technical Criteria Credentials of technical directors, company experience, equipment owned, financial capacity
Financial Criteria Bidding rates and cost competitiveness

The contract is awarded to the company scoring the highest combined points, not necessarily the lowest bidder.

How to Succeed:

  1. Invest in pre-qualification documents—they’re your first filter

  2. Build a strong technical profile—experience matters

  3. Price competitively, but don’t undervalue your services

  4. Ensure quality—once you’re in, deliver exceptional work to secure repeat contracts

Tip #4: Insure Your Construction Works

Building collapses and site accidents make headlines far too often in Kenya. When tragedy strikes, contractors are typically blamed—and bear the financial burden.

The Smart Approach: Top contractors operate under Contractors’ All Risk (CAR) Insurance.

What CAR Insurance Covers:

  • Damage to works under construction

  • Damage to existing structures (including neighboring properties)

  • Injury to workers and third parties

  • Materials and equipment on site

  • Public liability

Key Insight:

Under standard contracts (FIDIC, PPRA, JBCC), the developer is required to reimburse the contractor for insurance premiums. So you get protection without bearing the full cost.

“When unfortunate incidents occur, the contractor is typically blamed. CAR insurance protects you from bearing the full burden of monetary losses.”

Tip #5: Always Engage in Written Correspondence

In construction, disputes are almost inevitable. When they happen, the final settlement often comes down to one thing: written records.

The Smart Approach: Document everything in writing.

  • Need a drawing from the architect? Send an email.

  • Seeking payment? Write and copy all stakeholders.

  • Architect changed the design? Ask for written confirmation.

The Golden Rule:

  • Oral instructions from architects/engineers must be confirmed in writing within 7 days

  • Employers cannot give direct instructions—they must go through the project manager

  • One email can be the difference between winning and losing a multimillion-shilling dispute

Tip #6: Set Up a Strategic Procurement Plan

Many contractors treat material procurement as a last-minute consideration—only sourcing materials when the project reaches that stage. This approach leads to delays, inflated costs, and compromised quality.

The Smart Approach: Draw up a detailed procurement plan before the project begins.

What Your Procurement Plan Should Include:

Element Description
What to buy Material specifications and quantities
When to buy Timing based on project schedule
How much to buy Quantities from the Bill of Quantities (BoQ)
Whom to buy from Vetted, reliable suppliers
How much to spend Budget allocation per material

Why This Works:

  • Some materials (like specialty roofing) have long lead times—plan ahead

  • Buying from primary manufacturers saves money

  • Avoids the desperation of buying from secondary vendors at inflated prices

  • Ensures materials are available when needed

“Top contractors complete their projects on time and maximize profit margins because they plan ahead.”

Tip #7: Invest in Professional Capacity Building

Construction companies that thrive are those that invest in people and systems. The most successful contractors don’t rely solely on their own skills—they surround themselves with experts.

The Smart Approach: Build a network of professionals who complement your expertise.

Key Professionals Every Successful Contractor Needs Access To:

Professional Role
Bid Writer Analyzes opportunities and prepares competitive tenders
Quantity Surveyor Manages procurement, cost control, and BoQs
Contract Administrator Legal advice, contract analysis, and negotiations
Project Manager Planning, coordination, and monitoring
Architect & Structural Engineer Design and technical oversight

The Cost-Effective Strategy:

You don’t need to hire all these professionals in-house. Engage an integrated project management firm that can provide all these services on a project-by-project basis. This allows you to access world-class expertise without the overhead costs.

Summary: The Devil Is in the Details

The difference between a struggling contractor and a successful one is not capital—it’s attention to detail.

Struggling Contractor Successful Contractor
Takes any job without evaluation Selects jobs with favorable contract terms
Ignores contractual rights Knows and exercises contractual rights
Competes solely on price Wins on technical merit and value
Operates without insurance Has full CAR insurance coverage
Relies on verbal agreements Documents everything in writing
Buys materials at the last minute Has a strategic procurement plan
Works alone Builds a network of experts

Why MARKMAN BUILD COMPANY Stands Apart

At MARKMAN BUILD COMPANY, we don’t just practice these principles—we live them every day. Here’s how we set ourselves apart from other contractors in Kenya:

🔑 What Makes MARKMAN BUILD Different

MARKMAN BUILD Advantage How We Deliver
Licensed & Registered BORAQS-registered architects and ERB-certified structural engineers. We’re fully NCA-registered and tax-compliant.
Contractual Expertise We operate under standard forms of contract (JBCC, FIDIC, PPRA) and protect your rights at every stage.
Competitive Edge We win jobs through technical excellence—not just by being the cheapest.
Full Insurance Cover We operate under Contractors’ All Risk Insurance—you’re protected against site accidents and structural issues.
Written Documentation We document everything. Every instruction, every payment, every change is in writing.
Strategic Procurement We plan material acquisition early, sourcing from the best suppliers at competitive rates.
Professional Capacity We bring together a team of bid writers, quantity surveyors, contract administrators, and project managers.
Quality Assurance We never substitute materials, inflate costs, or compromise on safety.
Timely Completion We stick to schedules and deliver on time—no delays, no excuses.
Client-Centric Approach Regular updates, open communication, and genuine partnership.

💬 Our Promise

“Built Strong. Built Right.” is not just our motto—it’s our guarantee.

When you work with MARKMAN BUILD, you get:

  • ✅ Transparency – No hidden costs, no surprises

  • ✅ Quality – Materials tested, workmanship verified

  • ✅ Reliability – We show up and deliver

  • ✅ Integrity – We don’t cut corners or take shortcuts

Final Takeaway: Build With Confidence

The Kenyan construction industry offers incredible opportunities—but it also has its share of pitfalls. By following the tips outlined above, you can position your construction company for success.

And when you need a partner you can trust—whether as a contractor or a client—MARKMAN BUILD COMPANY is here to deliver.

📞 Contact MARKMAN BUILD Today

📍 Location: Nairobi, Kenya
📞 Phone: 0729001366 / 0720277948
📧 Email: info@markmanbuild.com
🛠️ Motto: “Built Strong. Built Right.”

Partner with MARKMAN BUILD and experience the difference that professionalism, integrity, and attention to detail make.