𝗧𝗬𝗣𝗘𝗦 𝗢𝗙 𝗖𝗢𝗡𝗧𝗥𝗔𝗖𝗧𝗢𝗥'𝗦 𝗖𝗢𝗡𝗧𝗥𝗔𝗖𝗧𝗦 𝗧𝗢 𝗨𝗦𝗘 𝗕𝗨𝗜𝗟𝗗𝗜𝗡𝗚 𝗬𝗢𝗨𝗥 𝗛𝗢𝗨𝗦𝗘. There are two most commonly used construction contracts when constructing houses namely; 1. FULL BUILDING CONTRACT 2. LABOR CHARGE CONTRACT Other types of contract exist but these are the ones most commonly employed. CONSTRUCTING A HOUSE USING A FULL BUILDING CONTRACT The traditional full building contract is the preferred one for many regular projects that are being handled through a well defined and hierarchical project team. The full building contract entails giving a contractor possession of the site where the construction is to be undertaken, following which they are responsible fully for delivering the project. In this kind of contract, the contractor is liable for sourcing materials, transporting them to site and storing them appropriately, securing the site, hiring and paying required labor and of course, delivering the project. The full building contract is governed using contract documents that stipulate all aspects of contract law that affect this kind of building project. These contract documents include drawings, schedules and full conditions of engagement. Currently the contract document that is in use in Kenya is published by the Joint Building Council, which is a board consisting of major stakeholders in the construction industry. CONSTRUCTING A HOUSE USING THE LABOR CHARGE CONTRACT The labor charge contract is a different kind of contract, which entails the developer entering an agreement with a building contractor whereby he shall be liable for the procurement and delivery of construction materials to site, in addition to ensuring the security of those items. The contractor is liable to provide skilled and unskilled labor on site to do the construction. They agree on a daily wage that the contractor is paid, based on specific tasks to be achieved by the contractor on that day. When building a house in Kenya, the developer often hires someone who shall represent him on site, called the CLERK OF WORKS. This individual works for the client and is his eyes and ears on ground. While he is employed by the client to represent him on site, he is not allowed to give any instructions except under the direction of the architect. The clerk of works therefore enforces the site instructions provided by the architect. WHEN TO USE WHICH CONTRACT TO BUILD A HOUSE. 1. FULL BUILDING CONTRACT As building projects get larger, construction logistics increase in size and complexity. There are many issues regarding construction that must be resolved, including sourcing and procurement of materials, transportation to and from sites, goods and material storage, specialized plants and other equipment, management of huge work teams, quality control, etc. For larger projects, these are often too difficult for an individual without the relevant construction infrastructure or experience to deal with. The best mode of constructing such a house is using the full building contract. It is the contractor’s headache to source for construction materials and bring them to site and construct the building according to the standards provided in the building contract documents. The role of consultants becomes to supervise construction quality and time, and enforcing the building contract between the contractor and the developer. 2. LABOR CHARGE CONTRACT One can use the labor contract when building a house if as a developer you have sufficient time to control the construction site, secondly if your budget is too constrained to allow for large contractor profits and finally if the construction is not very complex. The labor contract entails agreeing with a contractor on a daily wage rate (called daywork rate) in which a contractor is paid for work done per day. This mode may have its weakness in the case of builders being unnecessarily slow in doing certain tasks such that more time is required and paid for.