Construction is a messy affair. First, it is common for construction sites to be plagued by shoddy workmanship, which has serious consequences. Poor workmanship turns construction sites into accident sites. The most dangerous of which is buildings collapsing. In some cases, these incidents have been fatal.
Additionally, even when buildings do not collapse, there are long-term effects during the operational phases of the buildings. How many times have tenants complained that the shower doesn’t have enough water pressure or that they get electric shocks when they open the doors?
Replacing these defects is costlier after construction is completed. And let us not even go towards the reputational damage poor workmanship causes. Who wants to move to a building that is known for its defects?
Knowing all these challenges, Acorn Holdings, the developers of the Qwetu and Qejani brand of student hostels or Purpose-Built Student Accommodation, have ensured that their properties are built to last.
Acorn Holding’s stringent construction policies ensure buildings are completed to the highest safety standards.
For example, Acorn has introduced daily “Red Line meetings” before work starts on site, involving all management at the site, Acorn, contractor, and major subcontractors to review the 5 Red Line items, assuring their compliance and plugging any gaps identified the previous day.
These meetings also provide the platform for looking ahead to identify new work activities, new contractors, and to plan for any risks that may occur.
The developer also educates all site supervisors in putting workers to work safely, and continues to monitor their safety throughout each day. There is also Occupational Safety and Health (OSH) training for health and safety committees, first aiders, and fire wardens on all projects.
The results of these measures have been impressive.
In 2024, Acorn completed the 1,181-bed Qejani Hurlingham with ZERO reportable injuries. The same was achieved at the JKUAT Qejani. Overall, Acorn recorded 1 lost-time injury in 2024, with only 1 day lost throughout the year.
Projects are also susceptible to execution risk, which occurs, for example, when delays are occasioned by contractors and subcontractors, and delays in the procurement of construction materials.
To mitigate potential delays, Acorn takes several measures, such as providing incentives to contractors to complete projects ahead of time. Projects are also carefully planned, including strict procurement, which, on its part, ensures comparable pricing and delivery timelines. This ensures that the development manager partners with the best in the market for each aspect of its process.
Foreign exchange losses are another big threat during construction since many building materials are imported. A sudden loss of value of the Shilling shoots up construction prices, which means for a fixed budget, the developer either lowers the quality of finishes or scales down on the project size.
To prevent such a situation, Acorn employs several mitigation strategies, including locking in 58% of project costs through fixed-price Kenya Shilling contracts, incorporating inflation-adjusted cost projections, and maintaining USD deposit accounts to avoid unfavorable currency conversions at payment time.
The list is not conclusive, but in essence, Acorn is showing that you can deliver on time, on budget, and in the process redefine Kenya’s construction philosophy.
Did you know?
Did you know that with as little as Ksh 5,000, you can be an investor with Arcon and own part of their Qwetu or Qejani hostels? This can be done through the Vuka Investment Club.
In partnership with Acorn Investment Management Limited, the pioneers behind Africa’s first Student Accommodation Real Estate Investment Trusts (ASA REITs), Vuka makes it possible for you to invest in a professionally managed, income-generating real estate portfolio.
Authorised by the Capital Markets Authority (CMA), this opportunity offers returns in the form of annual dividends and long-term capital appreciation, helping you grow your wealth over time.
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