BUILDING ON YOUR PROPERTY - BUILDING LAWS OF COSTA RICA

Before you purchase a lot with the intent of building on it, you should conduct some preliminary studies on the property to ensure that there won't be a problem obtaining a building permit. First, determine if the lot has basic services such as water, electricity, telephone, and drainage. Second, make sure there are no restrictions placed on the lot that could result in the denial of a construction permit. It will not be enough to check the Public Registry. You should also check the Ministry of Public Works (Ministerio de Obras Públicas y Transporte) for future road construction projects; 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). And finally, be aware of any environmental regulation that may affect your construction project, such as national wildlife refuges and areas deemed protected by the forestry Law.

Requests for construction permits are filed with the Permit Reception Office (Oficina Receptora de Permisos de Construcción), which is a centralized office that houses government representatives from MOPT (Ministerio de Obras Públicas y Transportes-roads), INVU (Instituto Nacional de Vivienda y Urbanismo-housing), ICE (Instituto Costaricense de Electricidad-telephone), AYA (Instituto Costaricense de Acueductos y Alcantarillados-water), SNE (Servicio Nacional de Electricidad-electricity), CFIA (Colegio Federado de Ingenieros y Arquitectos), and the Ministry of Health (Ministerio de Salud).

For a single family home that measures more than 70 m2 (735.2 ft.2), the applicant must provide the following documentation: four copies of the construction plans, four copies of the property cadastre plot plan (Plano catastrado), four copies of the permit checklist (hoja de comisión), two copies of your property deed (escritura), one copy of the consulting contract with your architect/engineer (contrato de consultoria), an approval from the water company (AYA) regarding availability of water, and one copy of your electrical design plan approved by SNE. Condominium projects, commercial construction, and urbanization projects all carry additional requirements for obtaining construction permits.

In addition to these requirements, you will need to request a building permit from the municipality in which the property is located. By law it is the municipality that is delegated the responsibility to ensure that all constructions comply with building regulations (Article 1, Construction Law). You can, therefore, expect periodic visits to your construction site by the municipal building inspector, who must certify that the construction is proceeding according to code.
Whether you purchase an existing property or decide to build you dream home, be well informed about the procedures involved so that you ensure your investment will be a profitable one.

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. This governing body establishes the fee schedule that can be charged by its members. Most fees are based upon 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 is construction plans and permits, and phase 2 is control and execution.

In order to build in Costa Rica, you will likely face a bureaucratic maze of governmental regulations. The law requires that any application for a construction permit be presented by a licensed architect or engineer (Article 83, Law of Constructions, Article II.2 Construction Regulations). It is therefore advisable to 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. This governing body establishes the fee schedule that can be charged by its members. Most fees are based upon 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 is construction plans and permits, and phase 2 is control and execution

Phase 1 - Construction Plans and Permits: This phase is further subdivided into several distinct professional services that can be provided to the client by the architect/engineer. The percentages cited below are those that the CFIA has established as minimum chargeable fees.

A. Preliminary studies (estudios preliminaries): 0.5 percent. These studies may or may not be required, depending on the scope of the project.

B. Pre-project design (anteproyecto): 1.0 to 1.5 percent. Generally, during this stage, the architect/engineer will meet with the client in order to discuss the client's construction requirements. With this information, the architect/engineer will prepare drafts of the proposed construction project for review by the client. These drafts should include site planning and preliminary work drawings. When you contract for this service 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 (planos de construcción y especificaciones técnicas): 4.0 percent. This is one of the most important steps in the overall construction project since execution of the project will depend upon the quality and accuracy of your construction plans. Once you and your architect/engineer have agreed on the layout and design of the project, she or he will begin drafting the plans. In Costa Rica, a complete set of plans should include a site plan, distribution plan, elevation and transversal and longitude perspectives, roof design and drainage, design of footings and support beams, structural plans, electrical design, mechanical and sanitary system design, as well as a plan that details all of the interior finishing's of the construction. Budgeting (presupuesto): 0.5 percent for global budgeting; 1.0 percent for itemized budgeting. Here the architect/engineer prepares a materials list based upon your construction plans and prepares a construction budget for you.

Phase 2 - Control and Execution. This stage involves the actual construction and project supervision. The regulations authorize three kinds of supervisory tasks, each of which requires a larger time investment from the architect/engineer. Inspection (Inspección): 3 percent of total construction value. Here your architect/engineer will visit the construction site at least once a week and will inspect it to ensure that the plan specifications are being followed by the general contractor. They will also verify the quality of the materials being used and review invoices being presented by the general contractor.

A. Supervision (Dirección Técnica): 5 percent. This requires more direct involvement by the architect/engineer in the day-to-day operation of the project.
B. Administration (Administración): 12 percent. Here, the architect/engineer takes complete responsibility for the execution and completion of the project.

The option you choose will depend upon the type of project involved, the reliability of your builder/general contractor, and the amount of time you are willing to dedicate to the construction project. All told, phases 1 and 2 can range from 9 percent to 18 percent of the estimated value of the construction project, depending on the amount of services required. As such, it is common practice to negotiate fees with the architect/engineer. Most, of course, will be eager for your business and, depending on the scope of the project will be willing to work out an agreement tailored to your particular needs. Otherwise, have your attorney do the negotiating for you to ensure that you will get the best agreement possible.

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 your architect/engineer is going to assume. Do the same thing with your general contractor and any subcontractors.

Hiring an Architect or Civil Engineer
By law, all applications for construction permits must be filed by an architect or civil engineer who is a member of the Costa Rican Association of Engineers and Architects (Colegio Federado e Ingenieros y Arquitectos). These experts will review your plans to ensure the building meets seismic, electrical and other regulations standards.

How much does an Architect cost?
Here are the minimum rates charged by members of the Costa Rican Association of Engineers and Architects:
Preliminary study of construction plans and permits: 0.5% of project cost. (Such a study may or may not be required, depending on the project.)

Pre-project design: 1% to 1.5% of the price of project cost.
If the architect meets with you to discuss your needs, provides you with drafts of site planning, reviews construction plans and technical specifications of the project: 4.0% of project cost.
Once you have agreed with the layout and design of the property, the architect will draw up the plans. These will include a site plan, distribution plan, elevation and transversal and longitude perspectives, roof design and drainage, design of footings and support beams, structural plans, electrical design, mechanical and sanitary system design, interior finishing and construction. He will provide you with a list of materials necessary for the project, and will prepare a construction budget.
Figure 0.5% of project cost for global budgeting; 1.0% for itemized budgeting.

Control and Execution
Construction and project supervision
Regulation require one of three types of supervision
A. Inspection: The engineer or architect visits the site once a week, inspects to make sure that the plan is being followed by the general contractor, informs you of the quality of materials being used, and checks the invoices submitted by the general contractor. Cost: 3% of total construction costs.
B. Supervision: Engineer or architect visits your site daily and is more directly involved with the construction. Cost: 5% of total construction costs.
C. Management: Engineer or architect steps in to manage the project. Cost: 12% of total construction costs.
Before signing any of these contracts make sure that you have a thoroughly understanding its contents.
Hearts are broken less by malice than by miscommunication.

Getting a Building Permit
You must get a construction permit to build a house of more than 70 sq./m. (750 sq./ft.)
You or your architect must file for permits at the Oficina Receptora de Permisos de Construccion (Permit Reception Office). The plans will be studied by representatives from the MOPT (Roads and Transportation Department), INVU (Housing and Urban Development Department), ICE (Electricity Department), AYA (Water Department), SNE (National Electrical Services), CFIA (Costa Rican Architect and Engineer Association), the Health Department and the local municipality where the property is located.

You will need the following:

1. Four copies of the construction plans
2. Four copies of the property cadastre plan (plano catastrado)
3. Two copies of the property deeds
4. One copy of the architect or engineer's consulting contract (Contrato de Consultoria)
5. Approval from the water department regarding availability of water
6. One copy of your electrical design plan approved by SNE.

Note: Condominium, commercial construction or urbanization projects require additional permits.

Local Building Permits
NOTE BENE: In addition to the permits listed above, you will need a construction permit from the municipality where your property is located. Each municipality creates and enforces building codes for construction project in its area.
How Long Is This Going To Take?
Property research, first draft 6 1/2 weeks
Construction plans 6 1/2 weeks
Building permits 9 weeks
Construction 33 weeks
Total: 55 weeks

The Total Cost
Building a house in Costa Rica is going to cost about $315 to $540 per sq. meter ($29 to $50 sq./f.) depending on the quality of work and materials.
So, consult your calculator and you discover that you can build a home large enough to lie down in without hanging your feet out the window (say, 10 by 20 m., or 32 by 64 ft.) for $73,000 to $108,000, not counting land costs. By European or North American standards, that's quite a bargain price, especially if your new home is built on a palm-studded hillside, bathed by tropical breezes, perfumed by sea air with no snow to shovel. Then the price seems a bargain, indeed.

Here Are a Few House Building Tips

A. Check for neighborhood zoning laws. In order to maintain local standards (and property values) some locales set down strict rules for style and quality of construction.

B. You cannot built a house within 50 to 100 meters (164 ft. to 328 ft.) of a river.

C. In most locales, you must to leave space for a front yard and a sidewalk.

D. Housing developers keep in mind that Costa Rican law allows you to dedicate only 60 to 70% of your land to be used for building lots. 20% to 25% will be used for property for roads and 5% to 20% for parks.

E. If you have a nice view from your property, play it smart. Buy the land around it.

F. Contractors get a discount on materials. It is always a temptation to build with the stuff that gives them the best markup. Check up on them. Make sure they're using the materials agreed upon.
G. Along both coasts, the first 200 meters (656 ft.) above mean high tide is owned by the government. No building is permitted within the first 50 meters (164 ft.) above mean high tide.

H. The area 50 meters(164 ft.) to 200 meters (656 ft.) above mean high tide may be leased from the local municipality with the approval of the Instituto de Turismo (Costa Rican Tourist Board). Ostensibly, foreigners cannot, legally lease property in this area. However, a clever or desperate person can find ways to circumvent these laws.

I. The ICT discourages the building of anything over three stories high in beach areas