A decision by NCA1-registered building contractor Neelcon Construction Services Limited to diversify from regular building contracts to specialised construction projects has paid off handsomely. The Design and Build company, founded by Mr Naran Hirani 32 years ago, is now a highly sought-after contractor for specialised construction projects in health and hospitality.
“There are very few companies in Kenya that can undertake the work we do,” says Mr Hirani, Managing Director. “As a result, Neelcon has not only attracted clients and consultants in the local industry but has also received enquiries from across Africa and as far afield as the United States,” he reveals.
But what exactly are these specialised projects?
In the field of medicine, the construction of various specialised facilities within medical centres requires the involvement of personnel who understand the purposes of these facilities and the interactions of users with the installed equipment and procedures. For instance, Magnetic Resonance Imaging (MRI) rooms are high-radiation environments and must be constructed to minimise exposure to not only patients and medical staff but also those in the immediate vicinity of the facility.
Neelcon Construction Services Limited, an award-winning contractor, has a distinct advantage in this area due to its in-house skilled personnel. The company boasts one of the few Biomedical Engineers in the country, making it possibly the only contractor with such qualifications on its staff. As a result, the company has successfully executed various projects in health facilities across the country. Mr Niraj Hirani, a European-trained Biomedical Engineer and son of Mr Naran, is the mastermind behind the design and execution of these projects, working closely with his brothers, Mr Rahul Hirani, a RIBA Architect, and Mr Khushal Hirani.
Among the most significant projects the team has undertaken is the Cyberknife facility at the Kenyatta University Teaching, Referral & Research Hospital (KUTRRH), which recently made headlines for revolutionising cancer treatment not only in Kenya but also across the region. The Cyberknife is a painless and non-invasive treatment for both cancerous and non-cancerous tumours. A highly sophisticated machine delivers precise pulses of high-dose radiation that target specific tumours and other abnormal tissues while limiting exposure to surrounding healthy tissues. The facility at KUTRRH is only the second of its kind in Africa, following Egypt.
“Radiation areas require special considerations, including the use of radiation shields or blocks,” explains Mr Hirani. “Traditionally, lead has been used for radiation shielding, but this has been very expensive.” He notes that Neelcon designs high-density concrete radiation blocks of appropriate thickness as an alternative to protect individuals from scatter radiation.
Another area where Neelcon excels is in the construction of eco-lodges. In modern hospitality, there is a strong emphasis on construction that does not disturb existing ecosystems. Eco-lodges are accommodations in undisturbed, remote natural areas where both construction and operation have the minimal impact possible on the environment. They are not only part of the local community but also actively participate in protecting nature and culturally sensitive areas.
Neelcon has constructed such lodges in the Maasai Mara, Amboseli, Samburu, and the Serengeti in Tanzania. In the Maasai Mara, Neelcon built the Mara Enkaji, reputed as one of the best eco-lodges in the world. The lodge prides itself on being a luxurious boutique resort, offering an unparalleled fusion of opulence and eco-conscious living amidst the breathtaking landscape of the Maasai Mara.
These kinds of projects, while rewarding, come with challenges, concedes Mr Hirani. He notes that eco-lodges, for instance, are often located far in the bush, making them a logistical challenge. “Compliance with stringent environmental requirements is also mandatory.”
Why did Neelcon Construction Services decide to enter specialised construction? According to Mr Hirani, part of the reason was the decline of the construction industry in Kenya in terms of work availability and professionalism.
“In the early days, we had fewer contractors and a greater sense of professionalism in the industry,” he says. “Contractors would come to an understanding on how to work together without acrimony and mistrust.”
Mr Hirani says that the situation is very different today.
“Nowadays, the industry is characterised by corruption, such as ‘pre-aligned’ tendering and kickbacks,” he laments. “Securing a job depends on your relationship with consultants and other parties.”
He recalls his first project, the official residence of the Ambassador of Indonesia in Muthaiga. From the outset, Neelcon aimed to establish itself as a reliable and professional contractor. “Because of our good work and commitment to delivering projects on time and within budget, we would see a steady flow of work,” he remembers, noting that some work would come directly while in other cases they would tender alongside other contractors.
Mr Hirani feels that tendering for government jobs needs to be more professional.
He is also critical of the system, stating that it is defective by design and thus promotes corrupt practices. “The government should have its own consultants who assess the value of proposed works to determine the approximate cost,” he suggests. “They should then compare this with the bids received and check for correlation.” He notes that collusion among external consultants often results in exaggerated bids and constant variations, making projects very expensive in the end. At the very least, he says, tenders should pass through a common body to determine if the bids are fair.
The seasoned contractor observes that contractors in Kenya are generally disadvantaged by the standard contracts in use. “For example, a contractor is required to deploy at the site and start working for at least 28 days, but it may take another 28 days before the first payment is received. This means that the contractor must somehow find their own funds to work during that period.”
To further highlight how the field is skewed against contractors, Mr Hirani cites the requirement for a contractor to present a performance bond as part of the contract.
To promote fairness, he suggests that clients should also be required to demonstrate that funds to execute the project are available. “This is necessary for an equitable playing field.”
To address the issue of constant variations in contracts, Mr Hirani advocates for the use of the Design and Build model, such as the one Neelcon Construction Services uses. “This means that from the onset, the project’s cost is clear.” He believes that this system reduces opportunities for corruption arising from collusion among certain parties.
Mr Hirani laments the lack of a robust regulatory mechanism to restore sanity in the construction industry. He feels that regulators such as the National Construction Authority (NCA) need to do more to enforce professionalism and quality in works.
Industry associations such as the Kenya Association of Building & Civil Engineering Contractors (KABCEC) have also been ineffective in championing contractor issues. “We were members in the past; we no longer are,” says Mr Hirani, expressing his frustration with the state of the industry.
Despite these challenges, Mr Hirani is proud that Neelcon Construction Services has navigated them successfully and emerged strong. He is now looking forward to a well-deserved retirement. “At some point, you have to pass the baton,” he says, confident that his sons now have what it takes to propel the company to the next level.
