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Reference Glossary

Legal & Contract Terms Glossary

Authoritative reference for contract law, dispute resolution, FIDIC procedures, and Kenyan legal framework terms used in infrastructure procurement and project delivery.

Legal & Contract Reference

FIDIC Procedures and Kenya Contract Law for Infrastructure Practitioners

This glossary covers the legal and contractual terminology that contractors, project managers, and commercial teams encounter across the full lifecycle of Kenya infrastructure projects — from assignment and arbitration through to step-in rights, termination, and warranty obligations.

Legal literacy is not about having a litigation mindset. It is about knowing when to submit a notice, what a time-bar means for your claims, and how to structure correspondence to protect your entitlements. Contractors who understand their FIDIC rights consistently recover more of what they are owed at final account.

28 days

Notice Time-Bar

FIDIC 2017 Sub-Clause 20.2.1 — the claims notice window. Miss it and the entitlement is extinguished regardless of merit. Kenya arbitration panels consistently uphold this provision.

84 days

DAAB Decision

The DAB/DAAB must issue a binding decision within 84 days of referral. Decisions are immediately enforceable — even if challenged in arbitration.

56 days

Amicable Settlement

Mandatory amicable settlement period after a Notice of Dissatisfaction before arbitration can commence under FIDIC Red Book.

ICC

Arbitration

International Chamber of Commerce arbitration is the standard for DFI-funded Kenya contracts. LCIA is used on some commercial transactions; CIAC for PPDA-governed disputes.

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50+ Years Combined Experience

Contract Advisory and Claims Support

Beyond reference materials, Top Notch provides structured contract review, claims strategy, and submission support for contractors on Kenya and East African 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

Contract Risk Review

Pre-signing review of EPC and EPCM contract drafts — flagging asymmetric risk allocations, missing FIDIC protections, and unusual LD, security, or indemnity provisions.

02

Claims Strategy

FIDIC claims advisory, notice preparation, and contemporaneous record-keeping systems to protect contractor entitlements throughout the construction phase.

03

EOI & PQ Preparation

Structured support for EOI and prequalification submissions aligned to DFI and PPDA evaluation criteria.

Overview

The Contractor Who Understands Their Legal Rights Protects Their Margin at Every Project Stage

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Claims Protection

FIDIC 2017 Sub-Clause 20.2.1 requires a claim notice within 28 days of the event. Missing this deadline extinguishes the entitlement regardless of merit. A basic understanding of FIDIC notice mechanics can protect millions in contractor claims.

Dispute Prevention

DAAB/DAB early involvement can resolve disputes at a fraction of the cost and time of arbitration. Contractors who engage the DAB proactively — rather than waiting until a dispute becomes intractable — achieve better outcomes.

Step-in Risk

Understanding lender step-in rights protects contractors from being caught in a project company default without a direct payment relationship with the lenders. Direct agreements with DFI lenders are standard practice on large infrastructure contracts.

Termination Entitlements

Termination for Convenience entitles the contractor to recover all costs to date plus profit on the remainder — but the contractor must have thorough cost records to substantiate the claim. Understanding this right before a project is terminated protects recovery.

Overview

Contract Review and Claims Support for Kenya Infrastructure Projects

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Use it for services, company summaries, product highlights, or any section that needs a balanced mix of text, visuals, and proof points.

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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.

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120+ Team Members
24/7 Availability
99% Reliability
Global Reach

EPC Contracting Glossary

FIDIC mechanics, variation orders, LD provisions, completion certificates, and contract close-out terms for EPC and EPCM contractors.

Ethics & Integrity

Anti-bribery framework, conflict of interest policies, and whistleblower procedures for contractors operating in Kenya's regulated procurement environment.

Prequalification Guide

PPDA and DFI prequalification submission requirements — financial capacity, technical experience, legal standing, and evaluation scoring patterns.

EOI Submission Guide

How to structure a competitive Expression of Interest for Kenya projects — credentialing, format, and legal standing documentation requirements.

Common Legal & Contract Questions

Answers to the contract law and FIDIC procedure questions contractors most frequently encounter on Kenya infrastructure projects.

What law governs most Kenya infrastructure contracts?
Most PPDA-governed Kenya infrastructure contracts are governed by Kenyan law. DFI-funded contracts typically specify Kenyan law as governing law but may allow international arbitration. The Kenyan Law Reform Act and Kenya Arbitration Act 1995 (as amended 2009) provide the primary legal framework.
Which version of FIDIC is most commonly used in Kenya?
The FIDIC Red Book 1999 (Conditions of Contract for Construction) is the most widely used on DFI-funded Kenyan construction contracts. The World Bank MDB Harmonised Edition is also used on World Bank and AfDB projects. FIDIC 2017 is increasingly specified on new contracts but has lower market penetration in Kenya.
Can a contractor claim for unforeseen ground conditions in Kenya?
Yes. Under FIDIC Red Book Sub-Clause 4.12, a contractor is entitled to an Extension of Time and additional cost for physical conditions that could not have been reasonably foreseen by an experienced contractor at the time of the original investigation. Kenya courts and arbitrators have consistently upheld this right.
What is a DAB and how is it different from arbitration?
A Dispute Adjudication Board (DAB) is a standing panel of experts who visit the project site regularly and issue binding interim decisions on disputes. DAB decisions are immediately enforceable and binding — even if challenged. Arbitration is the final-stage process that can review and overturn DAB decisions. DAB is faster and cheaper than arbitration.
What happens if an Employer fails to honour a DAB decision?
Under FIDIC, a DAB decision is immediately binding and must be given "prompt effect." If the Employer fails to honour a DAB decision, the contractor can refer the failure to honour the DAB decision itself to arbitration — and the arbitral tribunal can enforce payment of the DAB sum without re-opening the underlying dispute.
Are liquidated damages a penalty in Kenya?
No. Kenyan courts have consistently followed English law in treating liquidated damages as a genuine pre-estimate of loss rather than a penalty, provided the rate is not extravagant or unconscionable. LD clauses in FIDIC contracts are generally enforceable in Kenya without the courts reducing the agreed sum.
What are novation agreements and when are they used in Kenya projects?
Novation agreements are used to transfer a subcontract (and all its rights and obligations) from an EPC contractor to the project owner or a replacement contractor on contractor default. They are also used to transfer design consultant appointments from the owner to the EPC contractor at contract award in design-build procurement.
What is the seat of arbitration and why does it matter?
The seat of arbitration determines the procedural law of the arbitration and the jurisdiction of courts to supervise and enforce the award. Nairobi is commonly specified as the seat for DFI-funded Kenya contracts — making the Kenyan courts the supervisory courts. London is occasionally specified on larger commercial contracts, particularly those involving UK bilateral funding.

Related Legal Resources

Further reference resources for contractors navigating Kenya's legal and contract framework:

  • EPC Contracting Glossary
    FIDIC mechanics, variation orders, and completion terms.
  • Ethics & Integrity
    Anti-bribery framework, COI policies, and whistleblower procedures.
  • Prequalification Guide
    PPDA and DFI prequalification submission requirements.
  • EOI Submission Guide
    How to structure a competitive Expression of Interest.