If you are considering the purchase of property in Costa Rica with the idea to build a new home, you need to make certain that you will be able to obtain a building permit for your construction plans. It is wise not to rely on the opinion of a sales agent, and definitely not the sellers. They are not qualified to provide technical advice, and as a buyer, you will certainly not benefit from their opinions.

1. Hire an unbiased professional to make certain the property has sufficient water, electricity, telephone and drainage. Consider these services as inexpensive insurance that can save you a lot of money and stress in the future. Do not rely on the seller’s opinion that these services are obtainable. Many purchasers find out too late that the cost to bring the utilities to their property ends up costing far more than they were told. It’s little surprises like this that can end up costing you a bundle and ultimately depletes the funds you originally budgeted for the construction of your new home.
2. You need to make sure there have not been any restrictions placed on the land that could result in denial of your construction permit. Have a knowledgeable professional check at all of the following government offices.
3. Public registry
4. Ministry of Public Works (Ministerio de Obras Publicas y Transportes) for future road construction projects.
5. Ministry of Health (Ministerio de Salud)
6. National Institute of Housing and Urban Development (Instituto Nacional de Viviendo y Urbanismo) e. Municipality (Municipalidad); where the property is located
7. Be aware that “environmental impact” is a very large concern in Costa Rica. Make sure there are no environmental regulations that may affect your land acquisition and construction plans, such as national wildlife refuges and areas protected by the Forestry Law.
8. If you plan to build a residence that is larger than 377 sq. ft. (35m2), your application for permits must include the following:
9. three copies of your construction plans including an electrical design plan prepared by a licensed electrical engineer
10. two copies of your property deed (escritura) or registered report from the National Registry
11. two copies of the permit checklist (hoja de requisitos y formulario)
12. two copies of your properties plot plan (plano catastrado)
13. written confirmation of availability of water from the Instituto Costarricense de Acueductos y Alcantarillado (AYA) or the local aqueduct administrator (ASADA)
14. one copy of your consulting contract with a licensed engineer or architect (contracto de servicios profesionales para consultoría)

PERMITTING PROCESS – The first part of the process is acquiring the permits and it may take a lot longer than you would ever expect without the help of an experienced professional. It involves satisfying the changing demands of several national and municipal government officials who issue the permits. This process can be simple if you contract with an experienced professional who understands the system here.

The process begins at the Permit Reception Office (Oficina Receptora de Permisos de Construcción) where your plans and application are presented and signed by a engineer or architect, licensed by the Costa Rica Association of Engineers and Architects (Colegio Federado de Ingenieros y Architectos) CFIA. This is the governing body that establishes the fees charged by its members. Most fees are based on a percentage of the value of your construction plans as established by the CFIA. Because you are the owner (propietario) you will need to sign the application too (Contrato de Servicios Profesionales para Consultoría). Moreover, when you do, you are agreeing to the fees that you will be charged throughout the entire construction process. On the application, look very closely at the sections, Projects and Others (Proyectos) and (Otros), the Total Contract Percentage (Total Contratado %). Before you sign, be sure you know what services you actually need from a Costa Rican architect or engineer.

PHASE 1 – Construction Plans & Permits – Fase (1) Planos y Documentos.

This phase is further divided into sub-categories that may not be necessary if you plan to build a small single-family residence.

1. Preliminary Studies: Estudios Preliminares: 0.5%: These studies should be completed if you are planning to build on undeveloped or rural property. Preliminary studies must also be completed if you are planning to build a commercial or tourist project that may impact surrounding property.
2. Pre-project Design: Anteproyecto: 1.0 to 1.5%: This involves meeting with a professional to discuss your ideas and define your needs. With this information, preliminary plans can be prepared for your review. These plans should include a site plan and drawings of elevations as well as floor plans. Before you contract for this service, determine specifically what you want to build, so that you are not paying professional fees for conceptual ideas. If you are well organized and able to show your contractor exactly what you want, you will spend less time and money during this stage and throughout the entire construction process.
3. Construction Plans & Technical Specifications: Planos de Construcción y Especificaciones Técnicas: 4.0%: This is the most important step in the overall process, because the cost and completion of your construction project depends upon the detail and accuracy of your construction plans and specifications. Once you have agreed on the layout and design, your construction plans can be finalized in order to satisfy the regulations of the government agencies that will issue your permits. A final set of plans should include the following: Site Plan; Foundation; Footings and Beams Plan; Electrical Plan; Plumbing, Mechanical and Sanitary System; Floor Plans; Front, Rear and Side Elevations, sections; Roof and Drainage Design.

Additionally, you will benefit from detailed material and installation specifications. These specifications define the materials you have selected and any specific installation procedures needed to satisfy your requirements. The plans and specifications will become part of your construction contract along with a corresponding payment schedule.

You should also have documents or provisions for changes or additions and notice of defects or errors so you can notify your builder in the event that any of these situations occur during the construction of your home.

4. Budget: Presupuesto: 0.5% global; 1.0% detallado: This service provides for the preparation of either a general, per square meter or a more detailed itemized budget of materials needed based upon your construction plans and specifications. In order for a budget to be accurate, it must be prepared by an experienced professional who understands the type and quality of construction you want to build. He must also know the current availability of building materials near your property. Import duties and transportation costs can significantly affect your homes construction budget.

PHASE 2 – Control & Execution – FASE (2) Control y Ejecución – This part involves the supervision of the hands-on construction. At this point, you need to have an experienced builder who is capable of scheduling and instructing the tradesmen as well as organizing the delivery and installation of all the building materials required to finish your home.

1. Inspection: Inspección; 3% of the total construction cost: It is mandatory that a CFIA licensed engineer or architect sign your Consulting Contract and the “official book of inspections” issued with every construction permit. For this reason, you must contract with a licensed architect or engineer who will assume responsibility at the CFIA for the inspection of your construction project. He will inspect the work being completed as often as your construction requirements dictate.
2. Supervision: Dirección Técnica: 5%: This requires a professional with the knowledge to direct the installation of the materials specified, according to your construction plans. This individual needs to be very detail oriented in order to coordinate the purchase, delivery and installation of thousands of different building materials.
3. Administration: Administración: 12%: This is a full time position that requires a professional who is capable of maintaining complete control and responsibility for the execution and completion of the entire construction process from the day your construction begins until the day of your final inspection.

The CFIA has established minimum tariffs that must be charged by its licensed members. The following minimum tariffs are required to be indicated on the Contract for Professional Consulting Services, (Contrato de Servicios Profesionales para Consultoría,) which is submitted with your construction plans.

FASE 1 – Estudios Preliminares 0.5% Anteproyecto 1.0 to 1.5% Planos de Construcción 4.0% Y Especificaciones Técnicas

FASE 2 – Dirección Técnica 5.0% Total minimum tariffs required 10.5% If a contract is submitted for less than 10.5%, it will probably be rejected by the CFIA. These tariffs may be greater, as on larger and more complex projects, but they may not be lower than 10.5%. On smaller projects, the Estudios Preliminares are combined into the Anteproyecto, which is then 1.5% instead of 1.0%, but the total remains the same.

It is possible to split FASE 1 and FASE 2 into two different contracts with the same or two different engineers, but it will likely be more expensive and duplicates the paperwork. On a simple residential construction project, it would be advisable to contract with one professional.

PERMITTING PROCESS SUMMARY – The number of services you choose to obtain from professionals in Costa Rica will depend upon the difficulty of your construction process.

Any adjustments or changes that need to be made during your homes construction can be minimized by hiring an experienced building contractor who understands the Costa Rican culture and language. This previous experience combined with his knowledge of local building codes, requirements, suppliers, tradesmen, engineers and architects will insure that construction of your project will be completed as scheduled and within your budget.

The author, Tom Rosenberger has lived and worked in Costa Rica for 23 years and from his travels throughout the country inspecting property and constructing housing he has acquired a wealth of knowledge, and he helps his clients to see beyond the obvious when purchasing land and building homes here. If you would like to contact Tom, you can send him an email at [email protected].