How To Build A House In Costa Rica: Delivery Of The Construction

by Quatro Legal Real Estate Team | June. 20, 2024 | Article, Real Estate

Building a house in Costa Rica is an exciting journey. It provides the opportunity of blending tropical beauty with the opportunity to create a personalized home in paradise. Once the blueprints are drawn, permits are obtained, and the construction process is finished, the final phase is the formal delivery of the completed home. This crucial stage ensures that every detail meets your expectations and legal standards. Here’s a comprehensive guide to navigating the delivery of your new home in Costa Rica.
Before the official handover of the build is done and you are allowed legally to move in, several inspections must be conducted to ensure that the construction meets both your expectations, Costa Rican building regulations and that all structural elements comply with the architectural plans and safety standards (this includes checking the foundation, walls, roofing, and any structural beams), but also, verifying that all electrical and plumbing systems are correctly installed and functioning which includes checking the wiring, outlets, water lines, and sewage systems.
All the above, allows a construction to meet substantial completion, which is a significant milestone that indicates that the project is sufficiently complete in accordance with the contract documents, so that the owner can occupy or utilize it for its intended purpose.

Some of the key aspects to confirm you are at this stage, are:

1. Usability: This means the project is usable for its intended purpose even though minor work may still be needed or be completed. Hence, a list of minor defects or incomplete work, known as a “punch list”, is typically created. It is important to understand these minor aspects do not prevent the project from being used and legally delivered to the owner.

2. Financial Implications: The completion of a project commonly triggers the release of remaining funds, minus those funds retained for the punch list items. Once payment is done and construction is delivered the project starts the period for the building warranty to be exercised.

Past this stage it is the final part of the project delivery, defined as the “final completion”, which marks the ultimate conclusion for the construction project as it will be considered completed and the construction agreement duties for the contractor fulfilled.

This stage involves essential steps before the delivery:

Completion of all work: All items even those included in the punch list must be fully completed.

Final inspection: This part shall involve a joint inspection performed by the owner – an its inspection team -, the contractor, and any relevant party involved in the project to verify and confirm that the contractual obligations have been met. The aim for this inspection is to identify any deficiencies or issues that must be addressed by the contractor prior to declaring the work as completed.

Certification of final completion and project log closure: The contractor and/or technical director must certify that the project is completed and meets the contractual requirements agreed between the parties. Once this has been confirmed, the technical director of the project, during the 30 following days, is obligated to inform the Engineers Federate Collegue about the completion of the work and shall keep a copy of the project log during the following 90 days after its close.

The final completion marks the official end of the construction contract and signifies that the owner can fully utilize the project for its intended purpose without any outstanding contractual obligations from the contractor. If you want to have peace of mind and know more about the legal construction warranties, please take a minute to read this blog about the Construction warranties in Costa Rica.
The delivery phase of building a house in Costa Rica is the final step in realizing your dream home. By ensuring thorough inspections, obtaining necessary documentation, and addressing any last-minute details, you can confidently move into your new home. The beauty and tranquility of Costa Rica awaits, making all the effort worthwhile. Enjoy your new slice of paradise!
If you’d like further information of this topic, please feel free to contact me Hillary Cruz at hcc@quatro.legal.

Hillary Cruz Chaves
Attorney at Law

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