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Home Procurement Options
There are three options which clients can use to procure a home in Kenya
- Buy houses built speculatively by a Developer. This can be either off-plan or finished units.
- Custom-build homes: This option presents a bit more hands-on approach where the prospective homeowner collaborates with a developer. The developer assumes responsibility for designing and constructing the home and may also assist in locating and acquiring a suitable site and arranging financing. Developers might also provide pre-developed plots within their owned sites, offering a variety of design choices for clients to select their preferred solutions.
- Self-build homes: This refers to homes where the client takes charge of the planning and construction of their new dwelling. This is for individuals with substantial expertise who can largely oversee the design and construction themselves. Alternatively, it includes a more conventional approach where homeowners hire consultants and contractors to handle these aspects for them.
When considering the customization of a home, the choice between custom-built and self-built homes brings different advantages and challenges for clients. Custom-build options tend to offer a more limited scope for clients compared to self-build homes, and costs may initially seem higher. Clients experience a significant reduction in organizational responsibilities, risks, stress, and potential problems. It’s worth noting that, in the long term, custom-built homes can be cost-effective due to better project control by developers their experience, ability to leverage networks to secure favorable pricing and higher-quality materials.
In Kenya, there exists a mix of all these options, with the traditional preference being for potential homeowners to opt for self-build projects. Many developers in the industry also engage in speculative building and custom-build projects. Self-build homes are often perceived as a cost-effective choice for clients because some may eliminate contractor and consultant supervision markup costs associated with project management.
However, the lack of experience and expertise on the client’s part can lead to subpar build quality and poor workmanship when unqualified individuals are involved in the day-to-day construction process. Over time, this can become detrimental as homeowners incur expenses to rectify defects and operational inconveniences once the home is occupied and in use. To avoid this, clients are often advised to engage qualified persons to some extent in their projects.
In this article, we are going to explore the option of Self-build homes.
Self-build Homes
This is to assist potential homeowners with a guide for the organization, design, and construction of self-build homes.
The approaches you can take when it comes to delivering self-build homes are:
- Design and Build Contractor Appointment: You can opt to engage a design and build contractor who will handle both the design and construction phases of your home. This is a streamlined choice for those seeking convenience.
- Consultant-Designed, Contractor-Built: Another path involves hiring consultants for the design phase of your home and subsequently contracting a builder to construct it based on the approved design.
- Consultant-Designed, Self-Managed Construction: Alternatively, you can collaborate with consultants to design your home and then take on the responsibility of managing the construction process yourself. This grants you more control but requires greater personal involvement.
Steps of Developing a Self Build Home
Below is an outline of a project plan that outlines the step-by-step activities from the initial realization that a self-build home is a potential option to the eventual occupation of the finished building. While many of the stages are consistent across all three self-build approaches, it’s important to note that the appointment stages differ.
- Initial Consideration:
Recognizing the potential for a self-build home project. - Feasibility Assessment:
Evaluate the feasibility of the self-build project, considering factors like budget, location, and resources. Because of the significance of this stage, it is recommended that one seek expert advice from professionals such as architects, and surveyors who are well-versed with self-build homes. This stage may also assist the client in assessing the chance of obtaining a permit, order of project costs, availability of funds, potential length of delivering the project, managing the project and many more. - Acquiring the Plot: Identify and acquire a suitable plot of land for the project.
- Preparing a project brief:
This is where the client defines the project requirements, design preferences, and key features. This helps with deciding what is required and describing it to potential professionals who will handle the project. The document might change severally before the concept design stage, from which subsequent changes might incur costs. - Appointment Stage:
Here the client decides which option to take to procure the home. There are three approaches the client can take as discussed earlier. Appointing consultants will require signing the forms of appointment for architects, engineers, and quantity surveyors. They will develop designs, submit drawings for approvals, estimates, and tender documentation and possibly appoint contractors. The process of design from concept or schemes to final designs is quite intricate and will be discussed in a separate article. Alternatively appointing a design and build contractor often delegates all these to the contractor with its pros and cons. With a greater risk, the client can also appoint consultants and build for themselves. - Secure Financing:
Once all appointments, costs and approvals are ready, the potential homeowner can now secure financing through options such as asset financing, personal/mortgage loans or make available savings to kickstart the project. - Appoint Contractor/Procurement
This will involve mobilization of resources and materials, and identifying the range of sub-contractors and specialists to handle certain components of the home. Suppliers can also be identified at this stage and notified of custom equipment and requirements in advance to avoid project delays in future. It is important to develop a properly organized records system for Orders, Proposals, Requests for Quotations, Delivery receipts, Invoices and ledgers for all payments done to be on-site. - Construction
This involves mobilization activities and actual construction work. Mobilization involves setting up the site, marking out site access and boundary wall (site hoarding), temporary services, emergency handling procedures, PPEs etc. Site work organization is also developed by calling for a pre-contract meeting, establishing a master programme of works, contract register and adhering to statutory requirements.
Actual construction works are done based on design drawings and specifications issued by the consultants. This might be carried out by the contractor or the owner. During the works, there are regular construction progress meetings, regular inspections and records of photos taken, visiting suppliers to assess the progress of ordered items, inspection and approval of samples, regular valuations and payments, coordinating utilities and finally snagging, testing and commissioning.
Once this stage is complete, inspection of works is done, and a completion certificate is awarded on practical completion. - Occupation of the Home:
At this point, the home is ready for occupation. A meeting is held to officially handover the home along with as-built drawings, certificates and warranties of equipment installed. However, the contractor is still bound by contractual terms until the end of the defect’s liability period (6 months). Defects are reported agreeably and the contractor is required to make good of any defects realized. Once the period is over and all are satisfied by the works, a certificate of making good defects is issued and final accounts are done.
Payment of retention amount (often 5% of contract sum) is done marking the end of contractual obligations and the project is fully completed.
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