The National Construction Authority Act, 2011 established the National Construction Authority (NCA) to oversee and regulate the construction industry in Kenya. The Act’s primary goals are to promote growth, standardize practices, and ensure quality in the industry. By requiring registration and setting strict standards, the Act aims to protect both contractors and the general public from substandard work and unprofessional conduct.
Summary:
Under the Act, all contractors must register with the NCA to legally operate in Kenya. This process involves proving the contractor’s technical qualifications, professional experience, and adequate resources to handle construction projects. Unregistered contractors face legal penalties, including fines and possible jail time.
Key Takeaways for Contractors:
- Registration is mandatory for legal operation.
- The NCA evaluates technical skills, resources, and conduct.
- Foreign contractors must meet specific criteria and receive temporary registration.
Summary:
The Act divides construction work into various classes based on complexity and specialization, such as general building, civil engineering, electrical engineering, and mechanical services. This classification helps match contractors to projects that fit their expertise, ensuring quality and safety in construction practices.
Classes Covered Include:
- General Building – Basic construction, painting, carpentry.
- Civil Engineering – Roads, sewer systems, drainage works.
- Electrical Engineering – Power installations, telecommunications.
- Mechanical Services – Plumbing, air conditioning, fire se
Summary:
The NCA holds wide-ranging responsibilities and powers to maintain industry standards. Its main roles include:
- Registering and licensing contractors.
- Promoting quality control and setting construction standards.
- Conducting inspections and enforcing rules.
- Providing training and certifying skilled workers.
Authority Powers:
- Issue certificates to qualified contractors and workers.
- Impose fees for services, enforce quality standards, and conduct investigations when needed.
Summary:
Quality assurance is a primary goal of the NCA. The Authority ensures all construction work meets safety and quality standards, aiming to protect the public and boost Kenya’s construction reputation. The NCA sets the standards for materials, workmanship, and overall construction safety, reducing risks of building failures.
What This Means for Contractors:
- Contractors are expected to adhere to strict safety and quality standards.
- The NCA can inspect sites and halt work if quality standards are not met.
Summary:
The NCA is funded through several channels:
- Government allocations,
- A construction levy of up to 0.5% on projects exceeding five million shillings, and
- Fees collected from contractors for registration and other services.
These funds support the NCA’s operations, including inspections, training, and enforcement activities to maintain a safe construction environment.
Summary:
The construction levy is an amount paid on large-scale construction projects to help fund the NCA’s operations. The levy is capped at 0.5% of the project’s total cost. This ensures that those benefiting from construction industry services contribute back to its oversight and development.
Levy Highlights:
- Applied only to projects worth over five million shillings.
- Supports regulatory and quality assurance activities.
Summary:
The Act requires all contractors to follow a strict code of conduct to uphold professionalism and ethics. This includes maintaining quality standards, following safety protocols, and managing site workers responsibly. Contractors found guilty of unethical or poor-quality work face penalties like fines, suspension, or deregistration.
Summary:
Registered contractors have the right to work on construction projects and advertise their services legally in Kenya. However, they are also responsible for maintaining high standards, training staff adequately, and adhering to safety regulations. Failure to comply can lead to suspensions or financial penalties.
Summary:
The NCA can suspend or deregister contractors who violate rules, compromise quality, or behave unethically. Causes for suspension include:
- Conviction of an offense under the Act,
- Poor quality work or unsafe practices, and
- Failure to pay required fees or levies.
Consequences:
Suspended contractors must cease operations until reinstated. Deregistered contractors lose their right to operate in Kenya and may not be re-registered under a different name.
Summary:
If a contractor disagrees with an NCA decision (e.g., suspension or refusal to register), they can appeal to the National Construction Appeals Board. The Appeals Board reviews cases impartially and can uphold, amend, or overturn NCA decisions. Contractors can further appeal to the High Court if dissatisfied.
Summary:
The Act provides legal protection for NCA staff and board members performing their duties. This immunity encourages them to enforce regulations effectively, as they cannot be personally sued for carrying out their responsibilities in good faith. However, the NCA itself remains accountable for its actions.
Summary:
The Act grants the Minister of Public Works certain oversight powers, such as:
- Setting levy rates,
- Approving NCA fees and charges,
- Enforcing policy changes, and
- Issuing additional regulations to support the Act’s goals.
The Minister’s involvement helps align the NCA’s operations with national policy and industry needs.
Summary:
This dedicated fund pools all NCA revenue sources, including government funding, levies, and fees, to finance the NCA’s mandate. The fund ensures a stable financial base for regulatory activities, industry training, and enforcing standards.
Summary:
The Act includes additional regulations on:
- The use of the NCA name and logo (protecting against misuse),
- Procedures for dissolving the NCA Board if necessary,
- NCA’s obligation to report to the government on finances and performance.
These provisions help maintain transparency, accountability, and professionalism within the Authority.