Real Estate & Infrastructure

The Client & Challenge: A major private developer sought legal counsel for a USD $35 Million (KSh 3.5 Billion) project involving the construction and sale of 252 residential units. The challenge was two-fold: ensuring the primary construction contract properly allocated project risk, and creating a robust, legally sound suite of sales and sub-lease documents. Failure to manage the contractual framework could lead to significant financial exposure and delayed completion.

Our Strategy & Action:

1. Contractual Risk Mitigation: We advised the client to adopt and adapt the FIDIC Conditions of Contract for Construction (The Red Book, 1st Edition) for the Main Contract. This international standard was customized to integrate Kenyan statutory requirements and clearly define the duties of the Contractor and the Consulting Engineer.
2. Documentation Suite: We drafted the entire legal framework for the unit sales, including the Standard Letter of Offer, the Agreement for Sale, and the Standard Sub-Lease. This ensured every unit sale was protected and compliant with the Land Registration Act, 2012.
3. Project Oversight: We prepared the Service Level Agreements (SLAs) between the client and the Project Manager, ensuring their scope and accountability were legally binding, thereby safeguarding the client’s interests through the project’s critical final stages.

Outcome: The firm successfully put in place all legal documents necessary for the project’s completion, financing, and subsequent sale of units. The comprehensive, risk-adjusted contractual framework allowed the client to successfully move the project into its final construction phases with protected legal assurance.