Building a house here can be a daunting task. To do the job properly requires a working (not tourist) knowledge of (construction) Spanish. Also you will need patience, time, patience, several daily visits per week to the site (by you or someone working for you), patience, and some knowledge of the building codes, patience, good contacts, and finally patience.
Contrary to rumor, it is quite possible to end up with a satisfactory result, with no residual bitterness about the construction process. But you have to plan ahead. Also you must be either personally involved and on site at least three times a week from start to finish, or have someone do that for you who represents your interests only.
To get started, a lot of due diligence has to be done. There is no other way to ferret out the best architects, builders, and sub-contractors (all the way to the finishing contractors each of whom separately do windows, doors, kitchen cabinets, railings, gutters, pools, decks, even sometimes ceilings and paint). You also have to be realistic and keep a balance between your budget and the finishes you are expecting. Finally, you also have to make decisions quickly and move forward, since you can expect a lot of delays along the way.
This article will give you a brief idea of what to expect when you plan on building down here.
1. Building Process In C.R. (some info and suggestions on how to proceed)
a. Do the dirt movement in the dry season, as soon as you know you want to build in the near future. That will allow the dirt to settle through a rainy season. This is not mandatory, but it is very useful for judging potential erosion or drainage problems before the construction starts.
b. Have the soil studies done by a reputable firm.
c. Decide what suits you better, an architect, or an engineer. By law, all applications for building permits must be signed by either of those so long as they are duly licensed by the Costa Rican Association of Engineers and Architects (Colegio Federado de Ingenieros y Ingenieros y Arquitectos-CFIA.). Their fees to do the blueprints are based upon a percentage of the value of the construction project, which is officially pegged at 10.5 %, but can sometimes be negotiated.
d. The involvement of a licensed architect/engineer in a construction project is separated into two phases. Phase 1 is construction plans and permits, and phase 2 is control and execution.
e. The law requires that three completed sets of plans be drawn that will include structural, architectural, mechanical, electrical, elevations, topography, roof design, septic design and details, finish materials of facade and floors, and walls. Once you have approved them, the plans are registered by the professional in charge with the “college of engineers,” listing his or her name as the responsible designer. The three sets of plans will be divided among: the designer, the municipality (required in order to get the construction permits approved); and the owner, to be kept on site by whomever is in charge of the project.
f. In order to start any construction permits process, water and power should be in place.
g. The necessary building permits mentioned above must be obtained before you can begin to build. These are issued by the municipality where your property is located. The required list of documents is mind-numbing but can be dealt with using our old friend patience. You basically have to fill out a form, prove you have the municipal taxes paid to date, and provide the following: a zoning use letter, a certified plat map, three sets of the construction plans, an insurance receipt from INS proving you have your mandatory policy, and the signed contract with the main contractor.
h. Thereafter, depending on the project and location, the plans will be studied by representatives from MOPT (roads and transportation department), INVU (housing and urban development department), ICE (electricity department), AyA (water department), or ASADA (water local association). This list might vary from one municipality to another, but it’s about right for all.
i. Take your time choosing one of the most important members of the construction team, the builder. Tour some of the houses that he has built in the area, review carefully what you see, and talk to the owners of those places. Do the same thing for any sub-contractor.
2. About Construction Costs
The most expensive areas in a home are usually the bathrooms and the kitchen. The number of windows and the size and quality of windows can also affect the cost. Vaulted ceilings and high roof pitches will also increase the cost of a home. If you are using other homes to calculate an estimate, be sure the home has a similar style and features of the home you plan to build.
The cost per square foot/meter is often higher for a small vs. a larger home. When building a larger home, the cost of expensive items (such as a furnace or kitchen) is spread over a larger area. Thus a larger home may have a lower square foot/ meter cost than a smaller home.
Some details in the design of your home can make a big difference in the price. To save on costs, begin estimating construction expenses before you select your final blueprints.
a. Expect Some Features to Cost More
i. Shape of Home
Homes that have a rectangular or box shape cost less to build. Having more angles and corners in the shape of your home can increase the amount of labor and materials needed to build a home. Domes shaped homes also make efficient use of materials and tend to cost less than other shapes.
ii. Site Preparation
Preparing a site for construction can have a big impact on the cost of a home. Building on a flat lot will usually cost much less than on mountainous terrain. If you have to haul in lots of dirt, do a lot of grading, filling, clear trees, or blast through large rocks, then site preparations will become more expensive, and the construction process will take longer.
iii. Cost Overruns
Usually the finished cost of a home is more then the original bid price. Cost overruns occur from overspending the allowances, making changes, and encountering unforeseen problems. Proper planning can greatly reduce cost overruns. In general, it is a good idea to allow an additional 10% to cover unexpected costs.
iv. Inflation and Market Conditions
Usually the cost of building a home increases around 6% per year. If it will be several years before you begin construction, remember to include inflation into the cost estimate for your home. When using other homes to compare prices, try to use homes that have been built within the last six months.
b. What Does It Cost?
To analyze potential costs, we need to identify what kind of house is to be built. Here are three general scenarios:
i. A basic, local-style construction, like a “rancho” house: involves a simple design, and inexpensive features. It is usually one floor, it doesn’t have hot water through the house, and the finishes are very basic. Built typically of cement block (or something cheaper like different kind of light materials), with basic tile floors and a tin roof, this would be one of the most modest constructions you could choose. Approximate costs are $20-35 sq. ft.
ii. A North America standard house: requires a well designed layout with clear specifications of the structural, electrical and finishes. Everything will be to US codes, and the house will have ceramic title, porcelain, two or more bathrooms, kitchen countertops, hot water throughout, A/C, roof tile, and so on. This construction could cost from $70 to $120 per sq. ft. (or more depending on the finishes)
iii. A luxury house: it is hard to give a price of a house in this range because the higher end practically has no limit. But assuming “standard” luxury items like marble floors, granite kitchen tops, top end appliances, vaulted ceilings, central A/C, and so on, the price starts at about $120, sq. ft. and heads north from there…
3. Recommendations or What To Watch Out For
a. It is important that you have someone representing your interests who speaks the language. This person should have some contacts and expertise in construction.
b. Have your owner’s rep visit the building site as many times as possible, at least two times a week to answer questions and check that everything is going well.
c. Before hiring people ask for references, go and see what they have done and talk to the people that they have worked for to CONFIRM if it is true.
d. Hire a reliable architect or engineer. Before hiring this professional is advisable to be sure that he/she would perform weekly inspections (sometimes including the electrical and structural engineer, as well), and that the set of the plans have been reviewed as many times as necessary and that they are complete and quite clear.
e. Review some of the houses that the contractor and architect have built in the area, and talk to the owners of those places. Also, it is better if the contractor will be on the construction site all the time, or if not, as much as possible.
f. Pay the builder for his labor only, a certain price per foot/meter. I don’t advise that you pay one price to the builder for both labor and materials. The danger is that you will not be happy with the resulting quality of the materials and finishes.
g. Have a written contract with all the contractors; make it as explicit and clear as possible. I highly recommend never paying unnecessarily in advance. Work out a schedule of how much to give the builder, architect, and sub-contractors, and make them stick to it. Also, include some kind of penalty clause in the likely event that things are not done on time.
h. Before you sign any contract, be sure that you understand the fee structure and know exactly what is and is not included in the fee. Likewise, clearly define the responsibilities that people you are going will assume.
i. Demand that your builder keep a very organized and clean job site through the construction.
j. Get a detailed estimate from the builder regarding the kind and number of materials will be needed to build your house. Don’t let the builder run up unlimited credit at the hardware store. Maintain a strict control over the buying of materials.
k. Make sure that all the people you are hiring by contract have their CCSS and INS in order. Remember that by law it is the ultimate responsibility of the owner to make sure the workers are legally registered for benefits like Social Security and INS.
l. Negotiate with hardware stores to give you a builder’s (wholesale) discount, including free delivery.
m. When you get to the finishes part don’t be limited by what the area provides. The hardware stores here don’t have much selection. Some things are better bought in San Jose or even brought down from abroad if they aren’t too big (if possible bring certain small but valuable things from abroad through the airport, like electrical outlets, door locks, plumbing fixtures, lamps, etc.) Shop around, it pays off.
n. Save on security costs by letting the workers sleep at the site during construction, typically in lean-tos that they build, thereby saving you the need to have a guard.
o. Be sure when the workers are gone (typically Sat-Sun.) someone is watching the house, to avoid theft.
p. Insist on good quality; cheap work and materials will only turn out more expensive in the long run.
q. Keep a clear and organized account of expenses.
r. Try to plan things way ahead, don’t leave anything for the last minute, because you can count on enough unforeseen delays along the way.
