How To Handle Change Orders When Building in Costa Rica (And Avoid Costly Mistakes)

Welcome to another video of the Quatro Legal Real Estate video series. In this article, we’re covering everything you need to know about change orders in Costa Rica.

Construction projects are dynamic endeavors where changes are not uncommon. From unexpected site conditions to client preferences evolving, managing change orders is crucial for the success of any construction or development.

How Do Change Orders in Costa Rica Work?

Change orders are alterations to the original scope of work agreed upon in the contract. They can arise due to unforeseen issues, design modifications, and material availability constraints, to mention a few examples.

Commonly, change orders can cause delays, cost overruns, and miscommunication. Because we are sure you want to avoid this when building your dream house or developing your project, here are some tips to manage changes during constructions.

How To Manage Changes During Construction In Costa Rica

Initial Planning

Thorough planning up front can minimize the need for changes later on. Anticipating and addressing potential modifications in the planning phase can streamline the construction process.

Documentation

Detailed documentation for every change order is essential. This includes a clear description of the change, its impact on the project timeline, and budget and any associated cost.

A good practice is to agree on a process, form, or slip template that must exist for a change order to be considered accepted. Establishing a clear approval process for change orders is crucial. Define who needs to approve changes.

Contingency Fund

Because change orders can significantly impact a construction project’s overall budget, we always advise our clients to set aside a contingency fund account for potential changes.

This buffer can absorb unexpected costs and prevent budget overruns.

Select the Right Type of Contract

Selecting the proper type of construction contract for your build is essential as some types align well with change orders and others do not. By understanding the reasons behind change orders, implementing a structured approach to managing changes and proactively addressing common challenges, construction teams can navigate the complexities of change while staying on track with timelines and budgets.

Looking for legal counsel you can trust to make your relocation to Costa Rica easier and more rewarding? Get in touch today.

Disclaimer: The information provided in this blog post is for general informational purposes only and is not intended to constitute legal advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change. For the most accurate and up-to-date information, please contact our office directly. Some images may be AI generated.