The role of the inspector when building in costa rica?

by Quatro Legal Real Estate Team | April. 19, 2024 | Article, Real Estate

Building is a complex process. Building in Costa Rica is a very complex process. I want to make this clear to stress that one of the most common mistakes expats and investors make when investing in Costa Rica and/or building their home is trying to save money or overlooking parts of the building process which can be a costly mistake.

It does not matter where you build, building is dynamic and full of moving parts and parties. It normally involves a lot or paperwork and red tape, architects, engineers of different kinds, working crews, supply of materials, change orders, fluctating budgets based on currencies that may also change, inclement weather, etc. Given this nature it is likely things may not go as planned. Let’s face it: a construction process is never perfect and never free of surprises. Hence, it you know what’s coming, how can you protect your peacemind and wallet?

Use an inspector!

What is an Inspector? The role of the inspector is regulated by the CFIA (Colegio Federado de Ingenieros y Arquitecto) and it is a professional or group of professionals that serve as advisors and conselors during a building the process. Inspectors are in charge of supervising the construction is executed according to the terms agreed. They guarantee it is done according to the best construction practices, blueprints, tecnical specifications, and other documents part of the building contract, such as the construction schedule and construction budget. An inspector is basically your best and dearest friend during the construction process. Well, a friend you need to pay, but you get the point.

How are inspections done? The service is rendered by periodic and scheduled visits to the project. The regulations state there should inspections every 7 calendar days in each specific stage and according to the work progress. However, in reality, this is something agreed between client and inspector according to budget and needs.

What does the inspector do? The inspector works for you. Hence, the main activity is to protect you, but we will be get a little bit more technical. A good inspection job should include:

  • Supervising and controling the construction work is done according to blueprints, technical specifications, and other documents part of the building contract.
  • Proposing changes in design as per owner’s best interest. This implies personal and professional responsibility for the inspector.
  • Preparing the final reception of the building along with the owner and a final report.
  • Preparing periodic reports to the owner with findings, areas of improvements, corrections and recommendations.
  • Preparing periodic reports to the owner with work progress.
  • Controling and approving disbursements according to work progress, construction schedule and budget.
  • Advising the owner to accept or request work changes when necessary.
  • Reviewing, approving, rejecting and/or requesting clarifications on invoices sent by vendors or builder for payment.
  • Reviewing the quality of the materials and construction process to make sure it is done according to code and constructions standards.
  • Reviewing and approving the materials, equipments and fixtures to install according to blueprints, technical specifications, and other documents part of the building contract.
  • Making sure all important decisions are registered in the construction log and blueprints.

How much does it cost to retain an inspector? The standard fee according to regulations is 3% of the construction value according to the Schedule for Professional Services for Edification Advisory. It is worth it.

We advise clients to always use a qualified inspector because when a construction project goes bad and the onwer realizes it, it is normally too late to act on it. You don’t want to be at what I call the “point of no return”. This an informal term I use to descibe the cases where what is left of the budget is not enough to finish the construction or hire someone else to finish or the timing is not ideal to make corrections to the build. I litigated in many arbitration cases pertaining construction matters and many of them could have been avoided by hiring an inspector through the building process.

For more information please reach out to GONZALO ROJAS at grb@quatro.legal

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