Home Construction Services - Costa Rica on the Cheap

There are 3 options for building your home in Costa Rica.

When building a home in Costa Rica, the number one concern must be constructing your home for earthquake conditions. While earthquakes are rare, our last good shake came in November of 2004, they do happen. If you notice, after every major disaster in the world, there are always a few structures standing. I want those structures to be homes we built. How do you get the “best bang for the buck” in Costa Rica? There are many ways to construct a home in Costa Rica. We recommend that you work with a local architect (see note below) and contract out for labor only. This way, you get all of the discounts on building materials and there is no builders’ markup on the items purchased for construction. Most Builders will markup the cost of building materials 20% to cover cost and profit. We don’t mark up anything but labor and encourage our clients to make all selections and receive builders’ discounts for all materials.

We have also negotiated, on your behalf, with local hardware stores for discounts on building materials. We have researched the local construction industry in the Cartago and Orosi Valley and we hire the best workers in the valley. Of the 50+ construction managers, we found there are 3 that are of exceptional quality and can build homes to US specifications. We will not build more than a few homes per year, so that we will not spread ourselves to thin. We turn down more projects than we accept. Before a construction project is accepted, both parties must understand the scope of the project and share the same vision. There is an old saying in the construction industry, your favorite contractor is the person you are beginning a project with next week and your least favorite contractor will be the same person one month before completion. We work hard with our clients to make sure that does not happen.

The cost of labor for home building in the USA is normally over 60% of the cost of the home. In Costa Rica the cost of labor is 25% to 40% of the total home cost. Labor cost for the rental villa was around $11,000, with a total cost of $50,000. That $11,000 labor cost included 4 workers that worked for 4 months. Labor cost for a 4,000 sq. ft. home will be about $44,000 ($11.00 per square foot, labor only) and the project will take one year to complete. Very little will be subcontracted. Windows, doors, kitchen cabinets, closets and woodwork are not covered in construction pricing.

Note* When working with a local architect, they will provide a sheet of paper or form that outlines cost for their services. These costs are a percent of finished cost. Do not sign a contract to pay for the cost as listed. These costs are negotiable and are about double what you should pay. What the form does provide of interest is a list of the responsibilities for the architect. One discussion point that is not addressed in the form is the amount if time the architect will spend at the construction site. We have seen architects that visit the construction site several times per week and architects that visit once a week for an hour. Make sure that your architect stays involved for a better product.