About Construction Process in Costa Rica

peter tilaran

Building in Costa Rica is not expensive, IF you are aware about the facts involved into this process, and choose the correct manager / company to develop your life projects.

About construction contracts...

1. Close contract: or named "turn key method", less flexible, has to have a very clear scope of work, detailed drawings and finishes, specific furnishing, windows type, and more...as more You have solve the consulting process less misunderstandings on the process. My expertise in this process, spend enough meetings and time with your Project Manager ( not architects or engineers necessarily ) and your contractor, to overview every single point of the process, and develop what is missing on drawings together as a team. Also, keep for you or your Project Manager, some activities as furniture, wood works, landscaping and outside gates, it can be develop in parallel. It is usual, contractor charges from 20% to 25% profits for building administration services, including guarantee ( if it is certified by CFIA ) and afford the contract responsibilities. the payment method depends of Project Manager ( not architects or engineers necessarily ) expertise, in my case, we develop contracts, training, 3D model analysis with the crews, good construction practices process, and payment chart by goals with incentives, but also faults. In this case also, the Project Manager can be the technical inspector instead the architects or engineers which did the drawings, if you have not paid this services, for the same price of 3%.

2. Open contract: or named " MANAGEMENT", this is a flexible process which involves clients decisions under construction process but without moving to far from the budgeting and scopes. This is when the Project Management manage your money for you on the construction process, and subcontract companies or contractor for different purposes, activities and duties. Also, every 21 days, he delivers an accountant chart report " informe de gastos" with all the purchasing invoices, labor invoices ( as payrolls or contracts) and other expenses for client revision, approval and next payments. In this case, the client is open to transfer the necessary but not mandatory money amounts for the construction process, and audits how it is being invest. Usually. Usually companies or Project Management charge between 10% to 15% for this services, and has to include at least a long list for providers, contractor, contacts, where houses best deal, among others... The guarantee in this case for the project is the Project Manager, but architect/engineer which did the drawings has to do construction inspection IF their services were contract separately.

Both systems works for construction, remodeling, additions, and home/commercial upgrade.

About other expenses...

Some construction companies / contractors have INSurance policies that may work for You, and also they have to have CCSS ( social health ministry payments ), but it is very important to clarify this issue very well with your Project Manager, remember, Costa Rica institutions visit the projects and could charge you non refundable if they find people working without this two points.

CCSS is a percentage split into two pieces, worker and owner, usually for 5 people working on construction site, you could pay $ 800.00 to $ 1000.00 monthly, and it depends of what kind of labor the people is doing.

Public services, as water and electricity along the project runs, are very cheap, and MANAGERS or the client could pay for it every month even by internet.

SETENA, if your project has more than 500 m2 ( sometimes is 300m2) or it is a special project as hotel o restaurant, it is required to proceed with D1 to achieve an environmental approval, the study cost usually isfrom $ 1 900.00 plus an environmental guarantee deposit refundable of 1%., except if it is requires to achieve a formal licence PGA or EIA. Contact us for more information about this process.

Drawings and consulting permitting 10.5%, it last 2 to 4 months to achieve stamps, see our other blog to know more about this process.

Construction Permitting is 1% from total budget, usually they charges from CFIA stamps.

CFIA tax is 0.27% from their construction averages, in regards of finishes type, measurements, and location.

INSurance payment ( for labor and people into the construction site ) is necessary to achieve construction permitting, and has to be paid prior to pay construction tax, it is 2% of total cost, but IF you have a Right and professional budget, you may pay less.

Water connection varies depending the area, in San Jose Valley it is $ 100, but in rural areas you could pay $ 500 per meter and if is necessary piping infrastructure.

Electrical meter cost is $ 100 and provisional infrastructure has to be install, no more than $ 200.

It is very important, to have construction permitting paperwork on site, CCSS payroll, INS number ID, construction book from CFIA, SETENA if applies, and drawings stamped all the time in construction site.

for more information contact us at jose@artesanocr.net

kind regards

#constructioninCR #service