The property under construction is the primary collateral that one needs to avail. However, if one intends to build in rural areas there may be need for additional security within a municipality to secure the borrowing.
A Building Contract is a standard agreement outlining, inter alia, the schedule of conditions of the building contract between the borrower and the contractor/construction firm. It defines the parties to the agreement, the site details, the contract sum, the professionals required, schedule of conditions of performance and the contract term including the retention period, penalties, party obligations and such other terms.
Construction team refers to the team of professionals that are appointed by the Project Manager to undertake the construction project. The professionals in the team should comprise of a qualified architect, quantity surveyor, structural and electrical engineers and a construction firm, or an acceptable combination of some of them depending on the size of the project. Where one firm has an in-house team of professionals, an independent project manager can be appointed to participate in the construction team.
A Project Manager can be a professional Architect, Quantity surveyor or a professional in any other branch of building engineering with a proven record of construction projects management. The project manager will be responsible for ensuring the design; project management activities and team are properly appointed and constituted to realize the project objectives. Where the project manager is a company, it must demonstrate acceptable experience in project management.
Project payments will be in stages and each disbursement of the loan proceeds happens after an acceptable report of completed work is presented to National Bank. Final disbursement, less contractual retention, occurs when the house is completed and upon confirmation that an occupation certificate has been issued by the relevant local authority. All payments must be authorized by the client for payment.
We send SMS alerts to our clients a month before their insurance covers are due for renewal. The client can then engage NBK/ NBKIA sales
staff via the domicile branch to initiate the renewal process.