Category: Hiring professionals

You’ve decided to build a house in Kenya. You’ve purchased land, started working on architectural drawings and are thinking about hiring a contractor.

But there’s an important decision to make before construction begins.

Should you hire a contractor to provide labour only, or should you engage a construction company to manage both labour and materials?

Both arrangements are used in Kenya, and each has advantages and disadvantages.

A labour-only arrangement gives you greater control over material purchasing but also introduces additional responsibilities.

A full construction contract can simplify coordination, although you still need to understand precisely what the contractor has agreed to deliver.

This guide explains how both approaches work, what they cost and how to decide which arrangement suits your project.

What is a labour-only construction contract?

A labour-only construction contract is an arrangement in which the homeowner generally purchases construction materials while the contractor supplies the labour needed to carry out the work.

For example, if you’re building a three-bedroom bungalow, you might personally purchase cement, sand, ballast, steel reinforcement, roofing sheets and other materials.

Your contractor would organize workers to undertake the construction.

Depending on your agreement, the contractor might also provide site supervision and coordinate the various trades.

However, labour-only does not automatically mean that every supervisory responsibility is included.

The contract should explicitly establish who is responsible for supervision, equipment, temporary works, site security and other important activities.

Example of a labour-only arrangement

Imagine you’re constructing a house in Ruiru.

You hire a contractor to complete the foundation and structural work.

The contractor provides masons, carpenters, steel fixers and general labourers.

You purchase the required materials and arrange for their delivery to the construction site.

The contractor then uses those materials to execute the work according to the approved drawings and specifications.

This gives you direct control over purchasing decisions.

However, it also means that construction progress may depend on how effectively you organize procurement.

What is a full construction contract?

Under a full construction contract, the contractor typically takes responsibility for supplying the materials and labour required to complete an agreed scope of work.

For example, you might appoint a construction company to build your house from foundation to completion.

The company coordinates material procurement, workers, subcontractors and construction activities.

You make payments according to the contract.

The contractor is responsible for delivering the specified work, subject to the agreed contractual terms.

However, the expression “full construction contract” does not automatically mean that absolutely everything is included.

Landscaping, boundary walls, kitchen appliances, professional fees and other items may be excluded.

Similarly, a contract described as “turnkey” should still have a detailed written scope.

Always establish what the contractor is actually promising to deliver.

Labour-only vs full construction: Key differences

Consideration	Labour-only contract	Full construction contract
Material purchasing	Usually homeowner	Usually contractor
Labour provision	Contractor	Contractor
Material supplier selection	Homeowner	Contractor, subject to specifications
Procurement coordination	Usually homeowner	Usually contractor
Site supervision	Depends on agreement	Usually included, but scope must be defined
Material price exposure	More directly borne by homeowner	Depends on contract pricing and adjustment terms
Homeowner involvement	Generally higher	Generally lower
Payment arrangements	Agreed labour rates or milestones	Agreed contract payment schedule
Quality responsibility	Must distinguish materials from workmanship	Defined by contract and applicable obligations

Neither arrangement automatically guarantees a lower final construction cost.

The outcome depends on the project, contractual scope, management arrangements and actual expenditure.

Is labour-only construction cheaper in Kenya?

Labour-only construction can be cheaper in some circumstances.

One potential advantage is that the homeowner purchases materials directly.

If you can obtain competitive supplier prices, organize deliveries efficiently and control wastage, you may reduce certain procurement costs.

You can also choose specific brands and products rather than relying on the contractor’s purchasing decisions.

However, these potential savings are not guaranteed.

Consider the additional responsibilities you may assume:

• Finding suitable suppliers
• Comparing material quotations
• Organizing deliveries
• Verifying quantities received
• Managing storage and security
• Coordinating purchasing with construction progress
• Dealing with damaged or incorrect materials
• Resolving supply delays

These activities require time and sometimes additional paid personnel.

If procurement is poorly coordinated, the apparent savings can disappear.

For example, workers may arrive at the site expecting to begin a particular activity only to discover that the necessary materials have not been delivered.

Depending on your agreement, you may still incur labour or standing-time costs while work is delayed.

This is why comparing only the contractor’s labour quotation with a full construction quotation is misleading.

You need to compare the complete expected project cost.

How to compare the total costs

Suppose you’re considering two arrangements for the same house.

Contractor A offers a labour-only agreement.

Contractor B offers a full construction agreement.

To compare them, establish the expected costs under each arrangement.

For the labour-only option, your budget should account for labour, materials, deliveries, supervision, equipment and other responsibilities that remain with you.

For the full construction option, examine the contractor’s complete quotation and identify any exclusions.

A useful comparison might look like this:

Cost component	Labour-only	Full construction
Labour	Separate allowance	Usually included
Materials	Purchased by homeowner	Usually included
Material transportation	Homeowner unless agreed otherwise	Depends on quotation
Site supervision	Confirm separately	Confirm inclusion
Equipment	Confirm separately	Confirm inclusion
Site security	Confirm separately	Confirm inclusion
Professional inspections	Confirm separately	Confirm separately
Contingency	Project-specific allowance	Project-specific allowance

Ask a quantity surveyor to review the comparison where appropriate.

The objective is to establish the expected total cost of delivering the same completed building, rather than comparing two figures covering different responsibilities.

Advantages of labour-only construction

1. Greater control over materials

You can select suppliers and purchase materials that meet the project’s specifications.

This may appeal to homeowners who want direct visibility into material purchasing.

However, material selection should remain consistent with the approved drawings and professional specifications.

2. Potential procurement savings

Purchasing directly from suppliers may provide opportunities to compare prices and negotiate terms.

Whether those savings outweigh your additional management costs depends on the project.

3. Greater visibility into expenditure

Because you purchase materials yourself, you can maintain direct records of supplier invoices and payments.

This can make it easier to track how much money is being spent on particular materials.

However, good records do not eliminate the need to verify quantities and workmanship.

4. Flexibility in purchasing

You may be able to schedule purchases around construction stages and available financing.

Nevertheless, procurement decisions must support the construction programme.

Delaying essential materials can interrupt work and increase costs.

Disadvantages of labour-only construction

1. More management responsibility

A house requires coordination between multiple activities.

Material deliveries must align with the construction schedule.

Different trades must also work in the correct sequence.

If you’re managing procurement yourself, you need a reliable system for making these decisions.

2. Greater exposure to material price changes

If you purchase materials over several months, the prices you pay may differ from your initial estimates.

Your budget needs to account for this uncertainty.

3. Potential disputes over defects

Suppose a section of construction develops a defect.

Was the problem caused by unsuitable materials, incorrect installation or another factor?

When the homeowner supplies materials and the contractor provides labour, responsibility can become contentious.

A clear contract, appropriate specifications and professional supervision can help establish accountability.

4. Material losses and wastage

Poor inventory controls can result in unnecessary purchases, damage or unexplained material discrepancies.

Maintain delivery records and establish who is responsible for storage, handling and issuing materials.

5. Difficulty managing remotely

If you’re living overseas or far from your construction site, coordinating deliveries and verifying material use may be particularly demanding.

You may need to appoint a reliable local representative or professional manager.

Advantages of a full construction contract

1. Centralized coordination

A construction company can coordinate procurement, labour and subcontractors under one agreement.

This may simplify day-to-day administration.

2. Clearer responsibility for delivery

A properly drafted agreement can establish which party is responsible for completing the specified work.

However, contractual responsibility does not eliminate the need for professional inspections and homeowner oversight.

3. More predictable budgeting under some contracts

Where the design and scope are sufficiently defined, a lump-sum contract may provide greater initial price certainty.

But this depends on the actual contract.

Variations, provisional sums, unforeseen conditions and contractual price adjustments can still affect the final amount payable.

A full construction contract is not necessarily a fixed-price contract.

4. Reduced procurement workload

You generally won’t need to personally arrange every delivery of cement, steel or roofing materials.

This can be particularly valuable if you have limited time or live far from the site.

Disadvantages of a full construction contract

A full construction contract may include the contractor’s procurement, management and overhead costs.

You may also have less direct involvement in selecting suppliers.

However, these are not necessarily disadvantages if the contractor provides efficient coordination and reliable workmanship.

The more important concern is transparency.

You should understand the specifications, payment arrangements, exclusions and procedures for approving changes.

Never assume that a contractor’s promise to “handle everything” is sufficient.

Which arrangement is suitable for someone building from abroad?

If you live in the United States, United Kingdom or another country, consider how much time you can realistically devote to managing the project.

A labour-only arrangement may require frequent decisions about materials, deliveries and expenditure.

You could appoint a local professional to coordinate those responsibilities, but their services need to be included in your budget.

A full construction contract may reduce your administrative workload.

However, you should still arrange appropriate independent professional supervision.

The important distinction is between delegating construction activities and abandoning oversight.

Even when a contractor manages the entire build, you remain responsible for making informed decisions about your investment.

What should a labour-only contract include?

Before appointing a labour-only contractor, make sure the agreement clearly establishes:

1. The work to be performed.
2. Applicable drawings and specifications.
3. Labour rates or agreed contract price.
4. Who supplies tools and equipment.
5. Who supervises the workers.
6. Who purchases and delivers materials.
7. Who is responsible for material storage.
8. Construction milestones and expected duration.
9. Payment arrangements.
10. Procedures for changes and additional work.
11. Responsibilities for defective workmanship.
12. Safety and insurance obligations.
13. Procedures for delays, termination and disputes.

Have an appropriately qualified professional review the agreement before signing.

Do labour-only contractors need NCA registration?

Kenya’s National Construction Authority regulates construction contractors.

The National Construction Authority Act defines contractor activities broadly, including circumstances involving the supply or control of labour.

The Act also contains specific qualifications and exceptions, so homeowners should not assume that every individual artisan arrangement is regulated identically.

For a substantial residential construction project, establish whether the person or company you intend to appoint requires NCA registration and a valid practising licence.

You should also ensure that your project satisfies applicable registration and approval requirements.

The National Construction Authority publishes guidance on contractor registration and construction project registration.

Can you combine labour-only and full construction arrangements?

Yes.

Some homeowners use different procurement arrangements for different stages of construction.

For example, a homeowner might engage a main contractor for structural work and use separately appointed trades for certain finishes.

However, this creates additional coordination responsibilities.

You need to establish who is responsible for interfaces between contractors, warranties, safety and correcting defective work.

A fragmented arrangement without clear management can be difficult to administer.

Before splitting the project into separate contracts, ask your professional team to evaluate the practical and financial implications.

Frequently asked questions

Is labour-only construction always cheaper?

No. It can reduce certain procurement costs, but the homeowner also assumes additional responsibilities and financial risks. Compare the complete expected project cost before deciding.

Can I supply my own materials under a full construction contract?

Potentially. Some contracts allow specified materials to be supplied by the homeowner. However, the agreement must establish how this affects price, delivery, responsibility and warranties.

Do I need a quantity surveyor for labour-only construction?

A quantity surveyor can help establish quantities, budgets and payment arrangements. This can be especially useful when you are purchasing materials yourself.

Is a full construction contract the same as a turnkey contract?

Not necessarily. The meaning depends on the actual agreement. Always verify the scope, exclusions and handover requirements.

Can I use labour-only construction if I live abroad?

Yes, but you need dependable arrangements for procurement, site management, supervision and reporting.

Final thoughts

The decision between labour-only and full construction should not be based solely on which contractor offers the lowest initial quotation.

Labour-only construction offers greater control over material purchasing but requires more active management.

A full construction contract can simplify coordination, but its value depends on the scope, specifications and contractor’s ability to deliver.

Before choosing either arrangement, establish what your proposed house is likely to cost.

Then obtain quotations that clearly describe the responsibilities each contractor will assume.

Ready to compare labour-only and full construction quotations?

Describe the same work for each contractor and make clear who will supply materials, equipment and supervision. Compare the complete cost, exclusions, construction programme and payment terms.

Request and compare construction quotations.

Already have proposals? Ask for help understanding the differences before choosing an arrangement.

You’ve received quotations from three construction companies.

One contractor wants KSh 8 million. Another wants KSh 9 million. The third wants KSh 10 million.

Naturally, the KSh 8 million quotation looks attractive.

But what if that contractor hasn’t included kitchen cabinetry, wardrobes, external drainage or certain electrical fittings?

By the time you pay for the missing work, the cheapest quotation might become the most expensive.

Comparing construction quotations means comparing what you’re getting, not simply what you’re paying.

Here’s how to do it.

1. Start with at least three comparable quotations

For many residential projects, requesting quotations from three qualified contractors is a practical starting point.

Larger or more complicated projects may benefit from four or five.

However, every contractor should receive substantially the same project information.

Ideally, this includes:

• Architectural drawings
• Structural drawings
• Building specifications
• Proposed finish level
• Project location
• Bill of Quantities (BOQ), where available

This gives contractors a common basis for pricing.

Our guide to how many contractor quotations you should obtain explains the process in greater detail.

2. Compare the scope before comparing prices

Your first task is determining whether the contractors have quoted for the same work.

Review each quotation and identify what’s included.

Pay particular attention to:

• Foundation and structural work
• Roofing
• Doors and windows
• Plumbing
• Electrical installation
• Flooring and wall finishes
• Kitchen cabinetry
• Wardrobes
• External drainage

If one contractor has excluded significant items, their quotation cannot be compared directly with a more comprehensive proposal.

For a detailed breakdown, use our building contractor quotation checklist.

3. Create a quotation comparison table

A simple comparison table makes differences much easier to identify.

Consider this hypothetical example for a residential project.

Item	Contractor A	Contractor B	Contractor C
Quoted amount	KSh 8M	KSh 9M	KSh 10M
Kitchen cabinetry	Excluded	Included	Included
Wardrobes	Excluded	Included	Included
External drainage	Excluded	Excluded	Included
Electrical fittings	Basic allowance	Specified	Specified
Construction period	8 months	9 months	9 months

At first glance, Contractor A appears considerably cheaper.

However, the scope is different.

Before making a decision, ask each contractor to clarify the missing items and provide prices where possible.

The objective is to compare quotations on an equivalent basis.

4. Calculate the adjusted cost

Let’s extend our hypothetical example.

After requesting clarification, you establish the following estimated additional costs.

Item	Contractor A	Contractor B	Contractor C
Original quotation	KSh 8M	KSh 9M	KSh 10M
Kitchen cabinetry	KSh 500K	Included	Included
Wardrobes	KSh 350K	Included	Included
External drainage	KSh 300K	KSh 300K	Included
Electrical upgrades	KSh 200K	Included	Included
Adjusted total	KSh 9.35M	KSh 9.3M	KSh 10M

These figures are fictional and demonstrate the comparison method, not actual market prices.

Suddenly, Contractor A is no longer the cheapest option.

Contractor B has the lowest adjusted price in this example, although you would still need to evaluate materials, workmanship, experience and contractual terms.

The adjusted total is often more informative than the original quotation.

Remember that an adjusted comparison is still an estimate. Confirm changes and inclusions in writing before signing a contract.

5. Check the materials and specifications

Even when contractors quote for the same work, they may propose different materials.

For example, two roofing quotations may specify different sheet thicknesses, coatings or manufacturers.

Similarly, finishing specifications could vary considerably between contractors.

Compare the proposed:

• Roofing materials
• Window systems
• Doors
• Floor tiles
• Sanitaryware
• Kitchen countertops
• Electrical accessories

If specifications differ, ask contractors to revise their quotations using the same requirements.

Otherwise, you may be comparing different houses rather than different construction prices.

See our guides to roofing costs and house finishing costs for more information.

6. Identify provisional sums

A provisional sum is an allowance for work that hasn’t been fully defined when the quotation is prepared.

For example, a contractor might include a KSh 200,000 provisional allowance for kitchen cabinetry.

If the kitchen you eventually choose costs substantially more, your final bill may increase.

Examine provisional allowances for items such as:

• Kitchens
• Wardrobes
• Sanitaryware
• Lighting
• Landscaping
• Unresolved groundworks

Request clarification wherever an allowance appears unrealistic.

A quotation containing numerous low allowances may appear competitive without accurately representing your eventual expenditure.

7. Check contractor registration and experience

Price is only one part of the decision.

Before proceeding, verify that the contractor is appropriately registered and licensed.

Kenya’s National Construction Authority explains contractor-registration requirements and the categories applicable to different project values.

You should also investigate:

• Experience with similar projects
• Previously completed houses
• Customer references
• Current workload
• Proposed site supervision

Where possible, visit a completed project and speak to a previous client.

Read How to Choose a Construction Company in Kenya for a more comprehensive assessment.

8. Compare the proposed timelines

Two contractors offering similar prices may propose very different construction schedules.

For example:

• Contractor A: 6 months
• Contractor B: 9 months
• Contractor C: 12 months

However, a shorter programme isn’t automatically preferable.

Ask each contractor to explain how they intend to deliver the project within the proposed period.

Consider whether their timeline accounts for material procurement, subcontractors, inspections and finishing work.

Our guide to how long it takes to build a house in Kenya provides additional context.

9. Examine payment terms

The payment structure can significantly affect your financial exposure.

One contractor might request a substantial upfront deposit.

Another might propose payments linked to agreed construction milestones.

Compare:

• Initial deposits
• Payment milestones
• Progress verification
• Variation payments
• Retention arrangements, where applicable

For substantial projects, professional advice can help you establish appropriate payment arrangements.

10. Investigate unusually low quotations

An unusually cheap quotation isn’t necessarily dishonest or incorrect.

A contractor may have lower overheads, efficient construction methods or favourable supplier arrangements.

However, substantial price differences deserve investigation.

Possible explanations include:

• Missing work
• Different materials
• Underestimated quantities
• Unrealistic labour allowances
• Incomplete specifications
• Pricing mistakes

Ask for clarification before awarding the contract.

A contractor who cannot adequately explain their pricing may expose you to additional financial uncertainty.

11. Consider getting professional assistance

For substantial residential projects, a quantity surveyor can help evaluate contractor quotations.

A QS can examine:

• Measured quantities
• Unit rates
• Missing work
• Provisional sums
• Pricing inconsistencies
• Variations in scope

This can be particularly useful when comparing quotations involving millions of shillings.

See Do You Need a Quantity Surveyor to Build a House in Kenya?

Construction quotation comparison checklist

Before selecting your contractor, work through these questions:

• Have all contractors received the same drawings and specifications?
• Do the quotations cover substantially the same scope?
• Are exclusions clearly identified?
• Are material specifications comparable?
• Have provisional sums been reviewed?
• Have missing items been priced?
• Have I calculated comparable adjusted totals?
• Have I verified contractor registration?
• Have I checked previous projects and references?
• Are the construction timelines realistic?
• Have I reviewed the proposed payment terms?
• Have significant clarifications been documented in writing?

If you cannot confidently answer these questions, seek clarification before committing.

How MyJenga fits into the process

Comparing construction quotations becomes easier when contractors start with the same project information.

MyJenga is being developed to help homeowners describe their construction projects, connect with relevant providers and ultimately compare the quotations they receive.

The first step is understanding your potential construction budget.

Use the MyJenga calculator to create an indicative estimate based on your proposed project’s characteristics.

Calculate your construction cost with MyJenga →

Frequently asked questions

How many construction quotations should I compare?

Three comparable quotations are a practical starting point for many residential projects. Larger or more complicated projects may benefit from additional bids.

Should I choose the cheapest construction quotation?

Not automatically. Compare the scope, materials, contractor experience, payment terms and likely additional costs before deciding.

What if contractors quote different materials?

Ask them to revise their proposals using the same specifications, or account for the material differences when comparing prices.

Can a quantity surveyor compare contractor quotations?

Yes. Tender evaluation and construction cost advice are among the services a quantity surveyor can provide.

Why are construction quotations sometimes so different?

Differences may arise from materials, scope, labour, overheads, construction methods, provisional allowances and pricing assumptions.

Final takeaway

The biggest mistake when comparing construction quotations is assuming that the lowest quoted price represents the lowest total cost.

Before choosing a contractor, compare the actual work being offered.

Identify exclusions, review specifications, investigate allowances and calculate comparable adjusted totals.

Then consider the contractor’s experience, registration, timeline and payment terms.

The objective is to select a contractor with a credible proposal for delivering the home you’ve planned.

Start planning your construction project with MyJenga →

You’ve contacted several construction companies in Kenya and finally received their quotations.

One contractor quotes KSh 8.5 million. Another quotes KSh 10 million. A third quotes KSh 11.2 million.

Which should you choose?

Before comparing prices, there’s a more important question: are all three contractors quoting for the same work?

A construction quotation should explain exactly what the contractor proposes to deliver, how much it will cost, and what hasn’t been included.

Without this information, the cheapest quotation could ultimately become the most expensive.

Here’s what every homeowner should look for.

1. Contractor information

Start by checking that the quotation identifies the company submitting it.

It should include:

• Registered company name
• Contact information
• Physical business address
• Quotation reference and date
• Relevant registration details

In Kenya, you should also verify that the contractor is appropriately registered and licensed by the National Construction Authority (NCA).

You can begin with the NCA’s official website, which provides access to its contractor-registration information.

The NCA also requires construction projects to be formally registered. Its project-registration guidance identifies several required documents, including approved drawings, a signed construction agreement and a BOQ summary.

Contractor verification should happen before you award the project, not after you’ve paid a substantial deposit.

For more guidance, read How to Choose a Construction Company in Kenya.

2. A clear description of the project

Your quotation should identify the project being priced.

For example:

Construction of a four-bedroom maisonette in Kiambu, approximately 220 m², with standard finishes.

Ideally, it should reference the architectural drawings and specifications used to prepare the quotation.

This matters because even modest changes in floor area or specification can substantially affect construction costs.

If you’re still establishing your budget, see our guide to construction costs per square metre in Kenya.

3. An itemized breakdown of construction costs

Avoid relying solely on quotations that provide one figure for the entire house.

A useful quotation should break the project into major components.

These commonly include:

Construction stage	Examples of work
Preliminaries	Site establishment, temporary facilities and supervision
Substructure	Excavation, foundations and ground slab
Superstructure	Walls, columns, beams and suspended slabs
Roofing	Roof structure, covering and drainage
Doors and windows	Frames, glazing, doors and ironmongery
Plumbing	Water supply, drainage and sanitary connections
Electrical	Wiring, sockets, lighting and distribution
Finishes	Plaster, ceilings, flooring and painting
External works	Drainage, paving and other specified site improvements

The breakdown should contain enough detail for you and your advisers to identify significant omissions.

For a substantial project, consider obtaining a Bill of Quantities so that contractors can price a consistent scope.

4. Material specifications

Two contractors might both quote for roofing but propose completely different products.

The same applies to tiles, windows, sanitaryware and electrical fittings.

Where relevant, your quotation should identify material specifications, including:

• Material type
• Quality or performance requirements
• Dimensions or thicknesses
• Brands or approved equivalents
• Installation requirements

Specifications should be sufficiently precise to establish what you’re paying for.

This is particularly important for roofing and house finishing, where product choices can significantly influence the budget.

5. Labour and subcontractor responsibilities

Clarify whether the contractor’s price includes all labour necessary to complete the quoted work.

Some companies offer comprehensive construction services, while others expect homeowners to engage particular trades independently.

Ask who will be responsible for:

• Plumbing
• Electrical installation
• Roofing
• Tiling
• Painting
• Kitchen installation

You should also establish who coordinates subcontractors and takes responsibility for their workmanship.

Otherwise, important gaps can emerge between different contractors’ responsibilities.

6. Provisional sums and allowances

This is one of the most important sections to examine.

A provisional sum is an allowance for work whose exact scope or cost hasn’t been fully determined.

For example, a contractor might include an allowance of KSh 300,000 for kitchen cabinetry.

But what happens if your preferred kitchen eventually costs KSh 650,000?

You may need to pay the difference, potentially alongside other contractually applicable adjustments.

Allowances aren’t inherently problematic. However, you should understand exactly which items remain uncertain.

Pay particular attention to allowances for:

• Kitchen cabinetry
• Wardrobes
• Sanitaryware
• Light fittings
• Tiles
• Landscaping
• Unresolved site works

A quotation containing numerous low allowances may initially appear more affordable than a competing quotation with more realistic specifications.

7. Explicit exclusions

Ask each contractor to identify what their quotation does not include.

Common potential exclusions include:

• Architectural and engineering fees
• County approvals
• Utility connections
• Water tanks and pumps
• Boundary walls and gates
• Driveways
• Landscaping
• Kitchen appliances
• Solar installations

Whether these items should be included depends on your agreement and project scope.

The critical requirement is transparency.

Before awarding the contract, make sure you understand the difference between the quoted construction price and the total amount you may ultimately need to spend.

For broader budgeting, read How Much Money Do You Need to Start Building a House in Kenya?

8. Construction timeline

A useful quotation should also state the anticipated construction period.

For example, a contractor might estimate that your project will take nine months.

However, you should clarify:

• Proposed start date
• Expected completion period
• Important construction milestones
• Circumstances that may justify time extensions

For more information, see How Long Does It Take to Build a House in Kenya?

9. Payment terms

A contractor’s quotation should explain how and when payment is expected.

Rather than focusing only on the total price, examine the proposed payment schedule.

Find out:

• How much is required upfront?
• Are payments linked to construction milestones?
• Who verifies completed work?
• How are additional costs approved?
• Is retention proposed?

For substantial projects, consider having your architect or quantity surveyor assess progress before major payments are released.

Avoid agreeing to payment arrangements that leave you financially exposed before the corresponding work has been delivered.

10. Variation procedures

Construction projects frequently involve changes.

You might decide to add another bathroom, change your roofing material or upgrade your kitchen.

Your construction agreement should explain how variations will be assessed and approved.

A practical approach is to require a written description of the proposed change, its additional cost and any effect on the construction timeline before authorizing the work.

This reduces the likelihood of unexpected bills and disagreements.

See How to Avoid Going Over Budget When Building a House.

Your contractor quotation checklist

Before accepting a quotation, use this checklist:

• Contractor’s identity and registration verified
• Project clearly identified
• Drawings and specifications referenced
• Major construction stages itemized
• Materials and workmanship requirements defined
• Labour and subcontractor responsibilities clear
• Provisional sums identified
• Exclusions explicitly listed
• Construction timeline provided
• Payment structure explained
• Variation procedures agreed
• Quotation validity period stated
• Applicable taxes and charges clarified

Remember that a quotation is not necessarily a complete construction contract. Important obligations should ultimately be documented in a properly prepared agreement.

How do you compare quotations fairly?

Once you’ve confirmed that each quotation contains the necessary information, you can begin comparing them.

A useful starting point is to request quotations from several appropriately qualified contractors using the same drawings, specifications and BOQ.

Our guide to how many contractor quotations you should obtain explains this process.

Where quotations differ significantly, ask the contractors to clarify their assumptions rather than immediately selecting the lowest figure.

A quantity surveyor can also help identify inconsistencies and evaluate the submitted prices.

Start with a construction-cost estimate

Before requesting detailed contractor quotations, it helps to know approximately how much your proposed house might cost.

MyJenga allows you to create an indicative estimate based on your proposed building’s characteristics.

As your project develops, you’ll be better positioned to discuss your budget and requirements with construction professionals.

Calculate your construction cost with MyJenga →

Frequently asked questions

Should a contractor quotation include materials?

It depends on whether you’re requesting a labour-only or labour-and-materials quotation.

The document should explicitly identify who is responsible for supplying materials.

Should I accept a quotation without a BOQ?

You can receive a quotation without a formal BOQ, but detailed quantities and specifications are particularly useful for substantial projects.

They help contractors price consistently and make it easier to understand discrepancies.

Should a quotation include payment terms?

Yes. The proposed payment arrangement should be clear before you commit to the contractor.

What if a contractor refuses to provide a detailed breakdown?

Ask why the information cannot be supplied.

An unwillingness to clarify substantial costs, exclusions or responsibilities should prompt additional scrutiny before you proceed.

Final takeaway

A useful construction quotation should answer three essential questions:

What exactly will the contractor deliver?

How much will it cost?

What could change the final price?

Don’t compare quotations using their headline prices alone.

Compare scope, materials, allowances, exclusions, timelines, payment arrangements and contractor qualifications.

The more clearly your project is documented before construction begins, the easier it becomes to manage costs and hold everyone accountable.

Start your construction project with MyJenga →

If you’re preparing to build a house in Kenya, you should generally aim to obtain three comparable contractor quotations before making your decision.

For larger or more complicated projects, you may want to obtain four or five.

However, the number of quotations is less important than their quality.

Three detailed quotations from experienced contractors are much more useful than ten vague estimates from companies that have never examined your plans.

Here’s how to approach the process.

Why should you get multiple contractor quotes?

Imagine you’re building a four-bedroom maisonette and receive three quotations:

Contractor	Quotation
Contractor A	KSh 10.5 million
Contractor B	KSh 12 million
Contractor C	KSh 13.2 million

That’s a difference of KSh 2.7 million between the lowest and highest quotations.

However, the price difference doesn’t automatically mean Contractor A is offering the best deal.

One contractor may have included kitchen cabinetry, wardrobes and external drainage, while another may have excluded them.

Obtaining multiple quotations helps you understand the range of prices being offered. Comparing their contents helps you understand why those prices differ.

For more detail, read our guide to comparing construction quotes in Kenya.

Is getting three quotations enough?

For many ordinary residential projects, three quotations provide a practical starting point.

They allow you to identify pricing differences without creating an unnecessarily complicated procurement process.

You can then investigate important discrepancies, including unusually low prices, different specifications or substantial exclusions.

For complex or high-value projects, obtaining four or five quotations may give you additional options.

However, there is little benefit in collecting dozens of quotations if you cannot evaluate them properly.

Your objective should be to obtain comparable bids, not simply accumulate quotations.

Should you contact every construction company?

No.

Start by identifying contractors who are appropriate for your particular project.

For example, if you’re planning a KSh 15 million maisonette, look for companies with experience constructing residential properties of a similar size and specification.

Before requesting quotations, investigate their qualifications and previous work.

In Kenya, you should also verify that the contractor has appropriate registration with the National Construction Authority.

You can start by visiting the National Construction Authority’s official website and using its registered-contractor search facility.

The NCA regulates contractors in Kenya and maintains registration information for construction companies.

You can also consult our guide to choosing a construction company in Kenya.

Give every contractor the same information

This is arguably the most important part of obtaining useful quotations.

Every contractor should receive substantially identical project information.

Ideally, this includes:

• Architectural drawings
• Structural drawings, where available
• Project location
• Building specifications
• Expected finish level
• Proposed construction timeline
• Bill of Quantities, where available

Otherwise, contractors may price completely different versions of your project.

One contractor could assume basic ceramic tiles while another includes premium porcelain.

Their quotations wouldn’t be directly comparable.

A Bill of Quantities (BOQ) can help address this problem by providing contractors with the same measured scope of work.

What should you compare besides price?

When your quotations arrive, examine more than the final amount.

Pay particular attention to five areas.

1. Scope of work

What exactly has each contractor included?

Check whether the quotation covers all the expected construction stages and whether any significant work has been excluded.

2. Materials and specifications

Are the contractors proposing comparable materials?

Differences in roofing products, windows, tiles, sanitaryware and other materials can account for substantial price differences.

3. Construction timeline

How long does each contractor expect the project to take?

An unrealistically short timeline may be worth investigating, particularly if the contractor has several other active projects.

Read our guide to how long it takes to build a house in Kenya.

4. Payment structure

Understand how much money is required upfront and when subsequent payments become due.

Where appropriate, payments can be linked to agreed construction milestones or independently assessed progress.

5. Experience and references

Ask for examples of similar projects.

Where possible, speak with previous customers and inspect completed work.

A detailed quotation is useful, but it doesn’t replace investigating the company that prepared it.

What if one quotation is much cheaper?

Don’t automatically reject it, but investigate why it is cheaper.

There may be a legitimate explanation.

For example, the contractor might have lower overheads, better supplier relationships or a more efficient construction methodology.

Alternatively, important work may have been excluded.

Ask the contractor to explain significant differences between their proposal and the others.

Our building contractor quotation checklist covers the information you should expect to receive.

Should you pay contractors to prepare quotations?

This depends on the scope of the quotation.

Some contractors may prepare preliminary quotations without charging.

Others may charge for detailed estimating, design work or extensive site assessments.

Clarify any fees before providing instructions.

If you already have complete drawings and a BOQ, contractors may find it easier to prepare quotations because the work has already been defined.

What happens after receiving your quotations?

Once you’ve reviewed the bids, you can create a shortlist of contractors whose proposals meet your requirements.

You may then arrange meetings to discuss outstanding questions.

Before making a final appointment, confirm the agreed scope, specifications, payment terms, construction programme and contractual responsibilities in writing.

Remember that the purpose of competitive quotations is not simply to secure the lowest price.

It is to make an informed decision based on the complete proposal.

Get ready to request quotations with MyJenga

Instead of contacting numerous construction companies individually, MyJenga is designed to help homeowners describe their projects once and receive quotations from suitable providers.

Start by creating an indicative construction-cost estimate.

As your project develops, you can prepare the information contractors will need to price the work.

Calculate my building cost with MyJenga →

Frequently asked questions

Is getting three construction quotations enough?

For many residential projects, three detailed, comparable quotations are a reasonable starting point. More complex projects may benefit from additional bids.

Should I always choose the cheapest contractor?

No. Compare the scope, specifications, experience, exclusions, payment terms and construction timeline before deciding.

How do I verify a contractor in Kenya?

Check the contractor’s registration and practising-licence information through the National Construction Authority.

Do I need a BOQ before requesting quotations?

Not necessarily, but a BOQ can make quotations more consistent and easier to compare.

Can I request quotations before I have architectural drawings?

You can request preliminary estimates, but detailed architectural and structural information will generally be needed for more reliable construction quotations.

Final takeaway

For most residential construction projects in Kenya, obtaining three comparable contractor quotations is a sensible starting point.

Consider additional quotations for larger or more complex projects.

More importantly, ensure the contractors are qualified, give them consistent project information and compare their complete proposals rather than their headline prices alone.

Start planning your construction project with MyJenga →

Choosing a construction company can be one of the most consequential decisions you make when building a home.

A contractor may be responsible for millions of shillings worth of:

• materials
• labour
• structural work
• subcontractors
• scheduling
• workmanship

So the cheapest quotation should not automatically win.

A better question is:

Which contractor gives me the strongest combination of competence, transparency, capacity and value?

Here are the checks worth making before you sign.

1. Verify that the contractor is registered with NCA

Start with the basics.

The National Construction Authority requires contractors operating in Kenya to be registered and to hold a valid practising licence.

Do not rely only on a company logo, website or WhatsApp profile.

Ask for:

• NCA registration details
• current practising licence
• company registration details

Then verify them independently.

NCA maintains a register of contractors showing the class of works and category for which a firm is registered.

That matters because not every contractor is authorized for every size of project.

2. Check the contractor’s NCA category

NCA building contractors are classified from NCA 8 to NCA 1.

Current building-works value limits include:

• NCA 8 — up to KSh 10 million
• NCA 7 — up to KSh 20 million
• NCA 6 — up to KSh 50 million
• NCA 5 — up to KSh 100 million
• NCA 4 — up to KSh 200 million
• NCA 3 — up to KSh 300 million
• NCA 2 — up to KSh 500 million
• NCA 1 — unlimited

So if your expected construction contract is KSh 15 million, for example, an NCA 8 building contractor would not fall within the current building-works value limit for that project.

Always check the category against the actual contract value.

3. Ask to see similar completed projects

Past work is one of the best sources of evidence.

Do not only ask:

“Have you built houses before?”

Ask:

“Can I see houses similar to mine that you have completed?”

Ideally, look for projects with a similar:

• budget
• floor area
• number of storeys
• specification
• construction system

A contractor who mainly builds small bungalows may not necessarily be the best fit for a large, highly specified maisonette.

Likewise, experience on major commercial buildings does not automatically tell you how the company handles private residential clients.

4. Visit at least one completed project

Photographs are useful.

A site visit is better.

If possible, inspect a completed project and look at details such as:

• wall finishes
• tiling
• doors
• ceilings
• paint
• plumbing fixtures
• external works
• general workmanship

You are not expected to perform a professional technical inspection.

You are simply looking for evidence that the company has actually delivered work you would be comfortable paying for.

5. Speak to previous clients

References become much more useful when you ask specific questions.

Instead of:

“Were they good?”

ask:

• Did the project finish near the agreed budget?
• Was the contractor communicative?
• Were there unexplained additional charges?
• Did they finish on time?
• How were defects handled?
• Were there disputes over materials?
• Would you hire them again?

A beautiful finished house tells you something about workmanship.

The homeowner tells you what the process was like.

6. Compare several contractor quotations

Do not rely on one quotation.

Obtaining several bids gives you a better idea of the market price for your project.

But three comparable quotations are usually more useful than ten vague ones.

See How Many Contractor Quotes Should You Get Before Building?

Most importantly, make sure the contractors are pricing substantially the same scope.

7. Do not choose solely on the lowest price

Suppose three contractors quote:

• Contractor A: KSh 9.8M
• Contractor B: KSh 11.1M
• Contractor C: KSh 12M

Contractor A appears cheapest.

But perhaps their quotation excludes:

• kitchen cabinetry
• wardrobes
• external drainage
• some electrical fittings
• boundary works

Contractor B may actually offer the more complete proposal.

This is why headline totals can be misleading.

See How to Compare Construction Quotes in Kenya.

8. Make sure the quotation is detailed

A quotation that simply says:

“Construction of 4-bedroom maisonette — KSh 11,500,000”

does not tell you enough.

You should understand:

• scope of work
• materials assumed
• finishes
• exclusions
• provisional sums
• payment structure
• estimated duration
• start date
• warranty or defect arrangements

See What Should Be Included in a Building Contractor Quote?

9. Use a BOQ where appropriate

A Bill of Quantities gives contractors a common basis for pricing.

Instead of every contractor making different assumptions, they can price the same measured scope.

That makes comparison much easier.

For a substantial project, this can be extremely useful.

See What Does a BOQ Cost in Kenya?

10. Check whether the company appears financially capable

Construction requires working capital.

A contractor may need to coordinate:

• labour
• materials
• subcontractors
• equipment
• site overheads

NCA’s contractor-registration requirements themselves include financial information, experience and technical staffing among the information considered for registration.

For you as the homeowner, practical warning signs can include:

• extreme pressure for very large upfront payments
• inability to explain cash-flow requirements
• repeated requests for money outside the agreed payment structure
• unusually low pricing without a convincing explanation

That does not mean you need to audit the contractor.

It means the company should appear capable of delivering a project of your scale.

11. Understand who will actually be on site

The person selling you the project may not be the person managing it.

Ask:

• Who is the site manager?
• Who supervises daily work?
• How frequently will they be on site?
• Who do I contact when there is a problem?
• Who approves subcontractor work?

Clear responsibility can prevent confusion later.

12. Ask how variations are handled

Changes during construction are common.

For example, you may decide to:

• add sockets
• change tiles
• enlarge a window
• upgrade sanitaryware
• alter cabinetry

Before signing, understand how changes will be:

• priced
• approved
• documented
• added to the programme

Do not rely on informal verbal agreements for significant changes.

Variations are one of the ways construction budgets can quietly expand.

See How to Avoid Going Over Budget When Building a House.

13. Agree on a payment structure

Be cautious about paying too much too early.

A sensible construction payment structure is often tied to:

• milestones
• measured progress
• certified work

rather than simply handing over most of the contract value upfront.

The exact structure depends on the contract, but you should understand:

• deposit required
• when subsequent payments become due
• what work must be completed before payment
• how variations are billed
• whether any retention applies

For larger projects, your architect or quantity surveyor can help assess work before payments are released.

14. Put the agreement in writing

A construction project should not rely on:

• WhatsApp messages
• verbal promises
• informal handwritten figures

A written contract should make important obligations explicit.

Depending on the project, it may cover:

• agreed scope
• contract price
• payment terms
• construction period
• drawings
• specifications
• variation process
• insurance
• delays
• defects
• termination
• dispute resolution

For a major project, obtaining professional advice on the contract can be worthwhile.

15. Check the professionals around the project

The contractor is not the only important party.

A residential project may also involve:

• architect
• structural engineer
• quantity surveyor

NCA’s project-registration requirements state that project consultants such as architects, engineers and quantity surveyors must be duly registered with their respective professional regulatory bodies and hold valid practising licences.

That provides another useful layer of accountability.

16. Make sure the project itself is properly registered

NCA states that construction projects in both the public and private sectors are required to be registered with the Authority.

The developer is responsible for the project registration.

Current NCA requirements include, among other things:

• registered contractor and subcontractors
• valid practising licences
• approved architectural and structural drawings
• relevant approvals
• signed contract
• BOQ summary signed by the quantity surveyor

Project registration is currently listed by NCA as free.

Your contractor should therefore be comfortable operating within the formal project-registration process.

Red flags when choosing a contractor

Be cautious if a company:

• refuses to provide NCA details
• pressures you to pay immediately
• gives only a vague one-page price
• cannot show past projects
• refuses to provide references
• gives a price dramatically below every competitor without explanation
• insists everything can remain verbal
• continually changes the promised scope
• cannot explain who will supervise the site
• wants large payments that are disconnected from actual progress

One red flag does not automatically prove wrongdoing.

But several together should make you more circumspect.

Should you choose a large or small contractor?

Neither is automatically better.

A larger company may offer:

• stronger systems
• more staff
• greater financial capacity
• more formal project management

A smaller contractor may offer:

• more personal attention
• lower overheads
• greater flexibility

The important thing is whether the company has the capacity and experience appropriate for your project.

How many contractors should you shortlist?

For most residential projects, you probably do not need twenty companies competing for the job.

A shortlist of several credible contractors allows you to compare:

• price
• methodology
• schedule
• experience
• communication
• scope

without turning procurement into an unwieldy exercise.

Three to five serious quotations may be more useful than a huge number of superficial bids.

See How Many Contractor Quotes Should You Get Before Building?

Before you start asking contractors for prices

Make sure your own project is sufficiently clear.

Ideally, you should know:

• what you want to build
• approximate budget
• floor area
• location
• finish level
• whether drawings are available
• expected start date

The stronger your project information, the more meaningful contractor quotations become.

MyJenga is designed to help homeowners move toward that point.

Start by estimating what your project could cost.

Calculate my building cost →

Frequently asked questions

How do I know if a construction company is legitimate in Kenya?

Start by checking its NCA registration and valid practising licence. NCA publishes contractor-registration information including the category and class of works for which a firm is registered.

What NCA category do I need for a house?

It depends on the construction contract value.

For building works, current NCA value limits range from up to KSh 10 million for NCA 8 through to unlimited contract value for NCA 1.

Should I always choose the cheapest contractor?

No.

Compare scope, materials, experience, exclusions, payment structure and past performance alongside price.

How many quotations should I get?

Several credible quotations are generally useful. For many residential projects, three to five serious bids can provide meaningful comparison without creating excessive complexity.

Should I visit a contractor’s previous projects?

Where possible, yes.

Seeing completed work and speaking with previous clients provides information that brochures and quotations cannot.

Final takeaway

Choosing a construction company is not simply about finding the lowest price.

Before signing, check:

• NCA registration and category
• relevant experience
• completed projects
• client references
• quotation detail
• financial and operational capacity
• site supervision
• payment terms
• variation procedures
• written contract

Then compare the complete proposition.

A contractor who is slightly more expensive but transparent, experienced and well organized may ultimately represent much better value than the cheapest quotation.

And before contractors compete for your project, make sure you understand what you are actually asking them to build.

Estimate your project with MyJenga →