Building on your Property

Whether you are purchasing an existing property or you decide to build your dream home, be well informed about the procedures involved so that you ensure your investment will be a profitable one. You will likely face a bureaucratic maze of governmental regulations. The law requires that an application for a construction permit be presented by a licensed architect or engineer. It is advisable that you contact a reputable, licensed architect or civil engineer to guide you through the construction process.

All architects and engineers in Costa Rica must be licensed by the Costa Rican Association of Engineers and Architects (Colegio Federado de Ingenieros y Ingenieros y Arquitectos-CFIA). They establish the fee schedule that can be charged by its members. Most fees are based on a percentage of the value of the construction project. According to the regulations of the CFIA (Reglamento para la Contratación de Servicios de Consultoría en Ingeniería y Arquitectura), the involvement of a licensed architect/engineer in a construction project is separated into two phases:

Phase 1 - Construction Plans and Permits

Phase 2 - Control and Execution

Before you build, you should carry out some preliminary studies on a piece the property to ensure that there won't be a problem obtaining a building permit. Determine whether or not the lot has basic services such as water, electricity, drainage, and telephone. Also make sure no restrictions have been placed on the lot that could result in the denial of a construction permit. Along with checking the Public Registry, you should check the Ministry of Public Works (Ministerio de Obras Públicas y Transporte). For future road construction projects, check with the Ministry of Health (Ministerio de Salud), the National Institute of Housing and Urban Development (Instituto Nacional de Vivienda y Urbanismo) and the municipality where the property is located (municipalidad). Requests for construction permits are filed with the Permit Reception Office (Oficina Receptora de Permisos de Construcción).

Phase 1 - Construction Plans and Permits:

This phase is further subdivided into several distinct professional services that can be provided by the architect/engineer. The percentages cited below are those that the CFIA has established as minimum chargeable fees.

A. The Preliminary studies: 0.5%, although depending on the scope of the project, these studies may or may not be required.

B. Pre-project design: From 1 to 1.5%. Usually the architect/engineer will meet with the client to discuss their construction requirements. With the information provided by the client, the architect/engineer will prepare drafts for the proposed construction project. The drafts should include the site planning and preliminary work drawings. Be sure you agree with your architect/engineer beforehand on what he or she is going to provide you.

C. Construction plans and technical specifications: About 4%. This is one of the most important steps in the overall construction project because the execution of the project will depend upon the quality and accuracy of the construction plans. Once an agreement has been made on the layout and design of the project, the architect/engineer will begin drafting the plans. The plans should include:

• A Site Plan
• A Distribution Plan
• Elevation, Transversal and Longitude Perspectives
• Roof and Drainage Design
• Design of footings and support beams
• Structural Plans and Electrical design, as well as a plan that details all of the interior design
• Mechanical and Sanitary System Design

Budgeting - The architect/engineer will prepare a list of materials based on your construction plans and a construction budget for you. 0.5% for global budgeting; 1.0 percent for itemized budgeting.

Phase 2 - Control and Execution .

The actual construction and project supervision takes place in this stage. The regulations authorize three kinds of supervisory tasks, each of which requires a larger time investment from the architect/engineer.

• Inspection: 3% of total construction value. Your architect/engineer will visit the construction site at least once a week to inspect it and ensure the plan specifications are being followed by the general contractor. He/she will also verify the quality of the materials being used and review the invoices being presented by the general contractor.
• Supervision: 5% of total construction value.
• Administration: 12% of total construction value. Here, the architect/engineer takes complete responsibility for the execution and completion of the project.

Depending on the amount of services required, phases 1 and 2 can range from 9% to 18% percent of the estimated value of the construction project. It is very common practice to negotiate these fees with the architect/engineer. Most will be eager for your business and will be willing to work out an agreement tailored to your needs. You can also opt to have your attorney do the negotiating for you to ensure that you will get the best agreement possible.

Be sure you understand the fee structure and what is and is not included in it before you sign any contract. You should also clearly define the responsibilities your architect/engineer will assume as well as your general contractor and any subcontractors.