Completion of public projects threatened

Real Estate

Harold Ayodo

A storm is brewing over completion of stalled public projects countrywide running into billions of shillings.

The bone of contention arises from letters from the Government to professional consultants withdrawing travel time allowances paid over the past 24 years.

The stalled house meant for the Vice President. Cancelled allowances for consultants could see more projects stalling. [PHOTO: COURTESY]

According to documents in our possession, the chief architect in the Architectural Department at the Ministry of Public Works, Cosmas Maweu, has cancelled the payments. Ironically, the professionals in the construction industry were engaged after signing a binding contract with the Government acknowledging the allowances.

Opting out

The agreement was in line with the Conditions of Engagement and Scales of Fees for Professional Services for Building and Civil Engineering works.

The Ministry now says the consultants would not be paid for travel time as required in clause 207:07:01 of the document. Other expenses, which the professionals claim, include drawing documents, hotel, communication, disbursements and special charges.

Currently, the Ministry owes the consulting firms millions of shillings over the disagreement, which has threatened public projects.

Nineteen projects that had stalled during President Moi’s regime were recently revived and set for completion. According to documents, the multi-billion shilling projects have estimated costs of between Sh57 million and Sh650 million.

Consequently, the consultants are considering opting out of projects that are out of Nairobi over the government move.

According to the Rules of Engagement, professional consultants who start projects from scratch should be paid 20 per cent on completion of approximate estimates.

Later, another 40 per cent is awarded after final estimates before the balance of a similar percentage is released in bits as the construction progresses.

compensation

Separately, professionals engaged to complete unfinished projects are paid on an hourly basis in line with the conditions of engagement. Therefore, an architect leaving Nairobi for consultancy in Mombasa should be paid hourly for the six-hour road trip, according to the agreement.

It would be economical for the professionals to only undertake construction projects in Nairobi to save on costs.

Letters from private professional consultants to Ministry of Public Works permanent secretary are yet to resolve the stalemate.

Legally, the Ministry should have engaged the architects, quantity surveyors, structural, electrical and mechanical engineers in discussions before shifting goal posts.

Professional bodies like the Architectural Association of Kenya and Association of Consulting Engineers of Kenya should have been consulted. Other relevant organisations whose members are also crying foul are the Institution of Engineers of Kenya and Institution of Quantity Surveyors of Kenya.

Breach of contracts can be penalised by compensation as the details of engagement are in writing and signed by both parties.

— The writer is an advocate of the High Court of Kenya

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