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Home Real Estate

Exploring the rise of construction consortiums in Kenya

Solomon Kimani by Solomon Kimani
June 18, 2024
in Real Estate
Reading Time: 1 min read

A consortium is a coalition of several firms or individuals coming together to form a unified entity capable of delivering comprehensive services and products from start to finish. In the Kenyan construction industry, this translates to a company offering services from the feasibility studies stage to project completion.

A construction consortium typically includes a contractor, an architect, various engineers (structural, geological, and services), a quantity surveyor, and a construction manager. These professionals are responsible for different aspects: the architect handles aesthetic design, the engineers ensure structural integrity and stability, the quantity surveyor manages contract administration and cost viability, and the construction manager oversees project management.

Essentially, consortiums provide a one-stop solution for all construction-related matters. The individuals representing each profession should be licensed, ensuring a seamless construction process for the client.

A one-stop facility saves time and costs related to construction, as it is managed by a team accustomed to working together. Should disputes arise, they can be resolved within the team. Although consortiums are cost-effective for developers, there is a risk of poor-quality work and potential collusion among consortium members, which could disadvantage the developer.

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However, these risks are minimal when dealing with registered, licensed practitioners in Kenya. Rigorous supervision of works can further mitigate these risks, leaving collusion as the primary concern.

While a consortium offers significant advantages in terms of efficiency and cost, it is crucial to ensure that the professionals involved are licensed and that the work is closely supervised. This approach maximizes the benefits of the consortium model while minimizing potential drawbacks, providing a reliable and streamlined construction experience for developers.

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