6
Term Categories
From delivery models and scope milestones through to liabilities, bonds, completion, and claims — covering the full EPC contract lifecycle.
Reference Glossary
EPC Contracting Terms Glossary
Definitive reference for EPC, EPCM, Design-Build, and BOT contracting terminology used in Kenya's international infrastructure procurement — from EOI through contract close-out.
EPC Contract Reference
Core EPC and FIDIC Terms for Kenya Infrastructure Contractors
This glossary covers the contracting terminology that international and regional contractors encounter in Kenya infrastructure procurement — from delivery model selection and scope definitions through to FIDIC claims mechanics, bond requirements, and completion procedures.
Understanding EPC contract language precisely is not a academic exercise. FIDIC time-bars extinguish contractor claims. LD caps protect contractor exposure. Completion definitions determine when risk transfers. The contractor who knows these terms secures better outcomes at every project stage.
28 days
FIDIC Time-Bar
The claims notice window under FIDIC 1999 and 2017 — miss the 28-day deadline and the entitlement is extinguished regardless of merit.
10%
Performance Bond
Standard performance security on EPC contracts as a percentage of the accepted contract amount — callable on contractor default.
56 days
Final Account Window
FIDIC Red Book submission window for the final account statement after the defects liability certificate is issued.
50+
Years Combined Experience
How Top Notch Supports EPC Bid and Contract Teams
Beyond reference materials, Top Notch provides structured bid preparation and contract advisory support to contractors preparing EOIs, PQ submissions, and full proposals for Kenya infrastructure projects.
That keeps the section easy to scan while still giving enough context for stakeholders who need a little more detail before taking action.
01
EOI & PQ Preparation
Structured support for expressions of interest and prequalification submissions aligned to DFI and PPDA evaluation criteria — formatting, capability narrative, and evidence mapping.
02
Contract Risk Review
Pre-signing review of EPC and EPCM contract drafts — flagging asymmetric risk allocations, missing FIDIC protections, and anomalous LD or performance security provisions.
03
Claims Advisory
FIDIC claims strategy, notice preparation, and contemporaneous record-keeping systems to protect contractor entitlements throughout the construction phase.
Overview
The Contractor Who Understands the Contract Wins the Negotiation
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120+
Team Members
24/7
Availability
99%
Reliability
Global
Reach
Claims Entitlement
FIDIC time-bar provisions are strictly applied in Kenyan arbitration. A contractor who fails to submit the correct notice within 28 days loses the claim — regardless of entitlement. Understanding FIDIC claims mechanics protects your margin.
LD Negotiation
LD rates on Kenya EPC contracts range from 0.05% to 0.5% of contract value per day. Negotiating the LD cap and exclusions before signing — rather than after an event — is the most valuable contract risk management action available to a contractor.
Variation Management
Uncontrolled variations are the primary cause of EPC contract overruns. Contractors who establish a rigorous Variation Order Register from day one — and insist on Engineer authorisation before executing all out-of-scope works — protect their final account significantly.
Final Account Strategy
The FIDIC final account must be submitted within 56 days of the defects certificate. Contractors who prepare contemporaneous records throughout construction have a dramatically stronger final account position than those who reconstruct records at the end.
Overview
All Five Glossaries — One Infrastructure Knowledge Base
This block combines a strong opening message, a supporting image, and a short set of practical highlights so the layout stays clear on every device.
Use it for services, company summaries, product highlights, or any section that needs a balanced mix of text, visuals, and proof points.
Flexible structure
Swap the text, icons, and links without changing the layout.
Clean presentation
Keeps the spacing, contrast, and card rhythm controlled.
Fast to reuse
Designed to be dropped into any industry or site type.
120+
Team Members
24/7
Availability
99%
Reliability
Global
Reach
Engineering Glossary
Civil, structural, geotechnical, electrical, and mechanical terms used in Kenya infrastructure specifications and procurement documents.
Finance Glossary
DFI, project finance, blended capital, and sovereign wealth fund terminology for contractors navigating infrastructure funding structures.
Legal Glossary
FIDIC claims mechanics, arbitration procedures, novation, step-in rights, and Kenya contract law terms for infrastructure practitioners.
Tax & Customs
KRA procedures, import duty rates, VAT structuring, withholding tax, and customs classification for contractors importing plant and materials into Kenya.
EPC Contracting FAQ
Common EPC Contract Questions
What contractors preparing bids for Kenyan infrastructure projects most frequently ask about EPC contract structures and FIDIC mechanics.
What is the difference between an EPC and a Design-Build contract?
Functionally very similar — both transfer design and construction risk to the contractor. The term EPC is more commonly used in process plant and infrastructure (power, water, oil & gas) while Design-Build is more common in buildings. In Kenyan practice, both terms typically imply a lump-sum price with contractor-led design.
Which FIDIC book is used for most Kenya infrastructure contracts?
The FIDIC Red Book (Conditions of Contract for Construction, 1999 or 2017 edition) is used for the majority of World Bank and AfDB-funded construction contracts in Kenya. The FIDIC Yellow Book (Plant & Design-Build) is used for EPC contracts where the contractor carries design responsibility. FIDIC Silver Book (EPC/Turnkey) is rarely used on DFI projects.
What is the standard LD rate on Kenya EPC contracts?
LD rates on Kenya EPC and construction contracts typically range from 0.05% to 0.25% of contract value per day, with a cap of 5–10% of total contract value. World Bank and AfDB standard procurement documents suggest 0.1% per day with a 10% cap, but contracting authorities frequently negotiate higher rates.
Can a contractor reject a variation order instruction?
Under FIDIC, a contractor must generally comply with a valid Engineer's instruction (including a variation order) immediately and submit any objection or commercial claim separately. The contractor cannot refuse to execute a variation simply because the price has not been agreed — they must comply and then negotiate the value.
What is a DAB or DAAB and when is it used?
A Dispute Adjudication Board (DAB) under FIDIC 1999 or Dispute Avoidance/Adjudication Board (DAAB) under FIDIC 2017 is a standing panel of independent experts who visit the project site regularly and are available to give immediate decisions on disputes. DAB decisions are binding unless successfully challenged in arbitration.
How is force majeure defined in FIDIC Kenya contracts?
FIDIC 1999 and 2017 define Exceptional Events (the equivalent of force majeure) as events beyond the parties' control that could not have been anticipated and cannot be overcome with reasonable effort. Examples include war, civil disturbance, terrorism, and extreme natural events. In Kenya, drought has been specifically considered in water sector force majeure provisions.
Is there a right to demobilise if the Employer fails to pay?
Yes. Under FIDIC Red Book clause 16, if the Employer fails to pay a certified amount within 42 days of the payment certificate, the contractor may give notice of intention to suspend work after a further 21 days of non-payment. If the payment failure continues, the contractor may terminate the contract for Employer default.
What performance security is required at contract signing?
Standard FIDIC and PPDA contracts require a Performance Bond of 10% of the accepted contract amount, issued by a bank acceptable to the Employer. The bond must be in place before the Engineer issues the Notice to Proceed. Some contracts also require a Parent Company Guarantee alongside the bank bond.
Related Contract Resources
Further reference resources for contractors working on FIDIC-based Kenya infrastructure contracts:
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Legal GlossaryFIDIC claims, arbitration, ICC, LCIA, and Kenyan contract law terms.
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Guide to PrequalificationStep-by-step PQ submission guide for PPDA and DFI procurement.
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Guide to EOI SubmissionHow to structure a winning Expression of Interest for Kenya projects.
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Finance GlossaryProject finance, blended finance, and DFI lending terminology.