{"id":8746,"date":"2017-01-20T09:00:32","date_gmt":"2017-01-20T14:00:32","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=8746"},"modified":"2020-09-07T09:14:34","modified_gmt":"2020-09-07T13:14:34","slug":"building-dealing-contractors-part-2","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/building-dealing-contractors-part-2\/","title":{"rendered":"Building and Dealing with Contractors – Part 2"},"content":{"rendered":"

Building a home overseas is an adventure. \u00a0\u00a0\u00a0\u00a0It can be a wonderful experience if we plan ahead, stay focused, and admit that we don\u2019t know what we don\u2019t know. \u00a0\u00a0Part one of this article covered the design, engineering, and the selection of a builder. \u00a0\u00a0Part two covers rule of law as it relates to contracts with a builder, assumptions we might make as North Americans, and the fun parts of building a home, furnishing it, and getting it ready to enjoy. \u00a0\u00a0\u00a0Part three of the series will cover some of the topics related to moving to a new country and getting your stuff and pets there too. \u00a0\u00a0\u00a0For now, we pick up where we left off last week talking about how to hire a builder. \u00a0\u00a0<\/span><\/p>\n

When it comes to the contract with a builder, or any contract for that matter, please know that in most countries of the region, the legal system is Civil Law.\u00a0\u00a0Also, in almost all cases, the official language of the contract and law is Spanish (Portuguese in Brazil). \u00a0\u00a0Having a bilingual attorney that you trust is key.\u00a0 In the end, you can and should request an English language translation of the contract, but remember, the Spanish version is the legal version.\u00a0\u00a0 Your lawyer will be your advocate to make sure you get the terms of the contract you want.\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n

One main difference, and an important fact to always keep in mind when working in Civil Law, is that there is no \u201cspirit of the law.\u201d\u00a0\u00a0Anything and everything is either explicitly allowed and included, specifically excluded, or it does not exist and is not relevant to the contract.\u00a0\u00a0\u00a0If you can get a warranty from the builder, then be sure to have it written explicitly in the contract.\u00a0\u00a0 Make sure that it is very specific.\u00a0\u00a0A long list of covered items might seem redundant, but remember, if it\u2019s not specifically included, it is not included or relevant.\u00a0\u00a0Redundancy and extra pages are part and parcel of the Civil Law process.\u00a0\u00a0\u00a0Suffice it to say, be careful and make sure you have everything in the agreement that you want before you sign it.\u00a0\u00a0This is critically important, so look for an article on Civil law vs. Common Law in the future where I\u2019ll dig a bit further into these differences and the issues they raise.\u00a0<\/span><\/p>\n

Payment timelines are important too. Unlike in North America, where a builder has a line of credit (or you have a loan from the bank to finance the construction), in Latin America, typically you are going to fund the construction with pre-payments.\u00a0 As much as everyone would like to stay behind the builder, it probably won\u2019t happen.\u00a0\u00a0What this means is that you\u2019ll have paid your builder, at any moment, more than the value of the property under construction.\u00a0\u00a0\u00a0 This is not a good thing, but they are depending on your cash to buy materials, pay labor, and put food on their table.\u00a0\u00a0 Accept this, but keep as tight a leash as possible.\u00a0\u00a0<\/span><\/p>\n

A 30% down, 30% at roof, 20% at dry, and 20% at keys is a best-case scenario.\u00a0\u00a0 If you can negotiate that, great.\u00a0\u00a0\u00a0Most builders want 30\/30\/30\/10, which keeps them significantly out in front during the whole process – and puts you at risk if they fail or just simply disappear.\u00a0\u00a0 Understand that this is the nature of the business in the region.\u00a0\u00a0\u00a0Your best protection is an inspector who keeps you posted of progress and holds the builder\u2019s feet to the fire for delivery and milestones.\u00a0\u00a0 <\/span><\/p>\n

Needing to hire an outside, independent inspector is a topic that drives right to the heart of the saying, \u201cWe don\u2019t know what we don\u2019t know.\u201d \u00a0\u00a0In North America, a building inspector\u2019s job is to make sure a building is being built to code. \u00a0\u00a0They are not your agent, but instead work for the city or county to verify that the building codes are being met. \u00a0\u00a0In Latin America, the local building inspector won\u2019t be coming out to make sure that your home is being built to plan, or to code, or being built at all. \u00a0\u00a0Trust me. \u00a0\u00a0\u00a0Chances are, they may never visit the site at all. \u00a0\u00a0Sure, your contractor will go by their office and pay the required building permit fee, but no one from the permit office will likely ever visit. \u00a0<\/span><\/p>\n

Therefore, having your own building inspector is very important.\u00a0\u00a0It is best if they are an engineer themselves, perhaps the one who engineered and\/or designed the house.\u00a0\u00a0\u00a0 They should have the same agenda as you and make sure the standards designed into the home are what gets built.\u00a0\u00a0Your inspector should also help you by identifying the timelines and progress of construction, and be able to spot problems early in the process.\u00a0\u00a0<\/span><\/p>\n

This person should be there at least weekly, but daily is better.\u00a0\u00a0Costs for this kind of service range from 1-5% of the cost of the home.\u00a0\u00a0Engineers cost more than a layman, but will have an eye for the specifications.\u00a0\u00a0\u00a0As the home moves into the final stages of construction, an engineer becomes less important than someone with an eye for style and finish detail.\u00a0\u00a0It may make sense to have a second set of eyes when the painting, cabinetry, and tile work start. \u00a0\u00a0Getting photos and video is easy these days, and it also ensures that the inspections are being performed.<\/span><\/p>\n

Another foreign concept for North Americans building a home in Latin America is to know what is \u201cstandard\u201d and included.\u00a0\u00a0\u00a0When building my first home in Nicaragua, my wife and I walked in when the home was nearing completion.\u00a0\u00a0We had designed in a large soaking tub\/hot tub in the master bathroom.\u00a0\u00a0During this walkthrough, we noted that there was still a huge hole in the floor of the bathroom.\u00a0\u00a0 The sinks were in, toilet was there, and the cabinets were finished.\u00a0\u00a0\u00a0 <\/span><\/p>\n

We asked our sales person,<\/span> \u201cWhen will the tub be here?\u201d\u00a0\u00a0\u00a0<\/span><\/i><\/p>\n

<\/i>She replied,<\/span> \u201cWhen did you order the tub?\u201d\u00a0 <\/span><\/i><\/p>\n

\u201cWe didn\u2019t,\u201d <\/span><\/i>we replied.\u00a0\u00a0\u00a0<\/span><\/p>\n

\u201cThen I don\u2019t know when,\u201d <\/span><\/i>said the agent.\u00a0\u00a0\u00a0 <\/span><\/p>\n

When we pressed for the reason they didn\u2019t order it, when it was clearly shown on the architectural drawings, she replied,<\/span> \u201cThe driveway shows a pickup truck drawn in it, but you aren\u2019t getting that either.\u201d<\/span><\/i><\/p>\n

Wow.\u00a0\u00a0We didn\u2019t see that one coming.\u00a0\u00a0\u00a0 <\/span><\/p>\n

Likewise, when our builder asked us to order all the phone and internet cables for the house, we were stunned. \u00a0But they at least did tell us about that and we did order the wires.\u00a0 The same happened with lights, fixtures, fans, etc.\u00a0\u00a0\u00a0These are things that we may assume are included as they are in the North America, but are probably not included in Latin America.\u00a0\u00a0We don\u2019t know what we don\u2019t know.\u00a0\u00a0Be thorough and ask a ton of questions.\u00a0 Get the answers in writing.\u00a0\u00a0Assume nothing. \u00a0\u00a0<\/span><\/p>\n

When picking appliances and fixtures, be sure to shop in the local stores.\u00a0\u00a0\u00a0\u00a0 The selections are usually excellent, and product offerings come from all over the world.\u00a0\u00a0 If you want fancy European faucets, you can get them.\u00a0\u00a0\u00a0 Remember though that getting a replacement handle may be nearly impossible. The other issue is to make sure the models in the stores are not left over, discontinued stock.\u00a0\u00a0Again, replacement parts will be hard to come by.\u00a0 I know firsthand as there was no way to get a replacement seat for a toilet we had. \u00a0When it comes to appliances, use the brands that the locals sell, stock, and can maintain.\u00a0\u00a0\u00a0 GE might be a favorite brand at home, but if LG or Samsung are what the local technicians know how to fix and stock spare parts for, get that.\u00a0\u00a0<\/span><\/p>\n

The other thing to keep in mind when it comes to appliances, computers, and toys, is the quality and reliability of power.\u00a0\u00a0The grid systems of the region are getting better and better for sure.\u00a0\u00a0 Actual power outages in major population centers are becoming rare.\u00a0Outside the cities, power can become less reliable and be off from time to time, and the further out you are, the less reliable it can be.\u00a0 Having a backup generator, battery bank, or alternatives like solar or wind probably make sense.\u00a0\u00a0Additionally, with the higher cost of electricity, the savings or \u201cpayback\u201d for the upfront investment generally occurs quicker than in North America.\u00a0\u00a0 Note: \u00a0The utilities generally do not buy back power produced at the home.\u00a0\u00a0Size for your needs only. \u00a0\u00a0<\/span><\/p>\n

The real issue with electric power in the region is the variableness and poor quality of the power.\u00a0\u00a0 Spikes and brown-outs are far more frequent than actual outages.\u00a0\u00a0 People lose TV and electronics because of the poor quality of the power, so it is important to have all devices on surge protectors.\u00a0\u00a0Even better are power conditioners that level the brown-outs.\u00a0\u00a0 The best solution is a whole house conditioner that can be tied into a battery bank for power reserves when the power goes off, and tied into solar panels to keep them powered up.\u00a0\u00a0\u00a0<\/span><\/p>\n

The same local brand buying decisions for TVs make sense in this area too.\u00a0\u00a0\u00a0 Again, spare parts for the popular brands in your host country will be stocked, and technicians will be trained to do the work.\u00a0\u00a0 Ordering spare parts for a TV from overseas, even with better shipping via FedEx and others today, will cause time delays and, in many cases, the parts will be subject to customs, duties, and sales taxes upon entry.\u00a0\u00a0Stick to local favorites on the TVs and appliances. <\/span><\/p>\n

As your home nears completion, what people consider the most fun part of the process begins: \u00a0\u00a0\u00a0shopping for furniture and decorating. \u00a0In the U.S., this is fun. \u00a0Overseas, it\u2019s a blast! Imagine getting online photos of your favorite expensive furniture and printing out the pages, then taking those pages to a craftsman who will custom make the piece for 10-20 cents on the dollar. \u00a0\u00a0\u00a0Imagine strolling flea markets in Buenos Aires and picking up knick-knacks, stopping at antique stores and stalls along a country roadside, bargaining for cool finds to hang on the wall or adorn a tabletop. \u00a0Or perhaps you\u2019ll strike up a relationship with a local artist or two and hang original magnificent masterpieces around your home. \u00a0The affordability and access to real treasures is absolutely incredible, and the discovery process is a true joy. \u00a0\u00a0\u00a0<\/span><\/p>\n

A few notes to folks considering renting out the house you\u2019ve just built. As mentioned in the previous article, be sure in the process of designing the home that you create an owner’s lock up. \u00a0\u00a0And depending on what you plan to store, consider a dehumidifier to condition the air to keep mold and mildew at bay. \u00a0If the home is going to be rented, you will also want to consider this important factor in the types of furniture, appliances, linens, and housewares you buy. \u00a0Many property managers have a standard set of products. Many also mandate the brands, make, and model to ensure easy replacement of broken or missing items on the fly. \u00a0\u00a0No matter what, you\u2019ll want to keep in mind that renters can be hard on your things, so while it might not be the exact perfect interior design for you, remember the practical side of renting. <\/span><\/p>\n

One last issue to cover is that of self-reliance. \u00a0It is always wise to follow the boy scout motto of \u201cBe Prepared.\u201d \u00a0\u00a0It is even more so south of the border. \u00a0In North America, the federal governments have the responsibility, and funding, to respond and provide assistance following a natural disaster. \u00a0Even with the criticisms post-Katrina and Sandy, the fact is that the agencies showed up with resources and people. \u00a0\u00a0In Latin America, these agencies don\u2019t exist at the level they do in North America. \u00a0They don\u2019t have the resources to help you in a tough situation. \u00a0Remember, you are a guest in the country and the local government\u2019s responsibility is to take care of its own citizens. \u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n

So being prepared is key – have water and food handy. \u00a0There are plenty of websites to advise you on the quantities one should stock. \u00a0Notice that you\u2019ll see lots of locals with above ground, elevated cisterns of 500 gallons or more. \u00a0They know something. \u00a0\u00a0They are probably used to having the water go off and are prepared to keep water and pressure intact. You should do the same, and it\u2019s possible to hide the cistern in a roof space if you don\u2019t want it visible. \u00a0\u00a0If you have solar and battery storage systems, you\u2019ll keep some power. \u00a0\u00a0If you have a fridge, you\u2019ll be glad, especially if the power is off for a long time. \u00a0Also, have a plan to evacuate for a short period of time. I\u2019ve lived in the aftermath of a hurricane. \u00a0It\u2019s not fun. \u00a0\u00a0\u00a0<\/span><\/p>\n

Lastly, hope for the best. \u00a0The likelihood of a natural disaster is slim. \u00a0So enjoy your new home and new community. \u00a0Get out and make friends. Get involved. Join Rotary or a non-profit that is making a difference in the lives of people around you. \u00a0Be a part of the larger solution and enjoy seeing the smiles of the people you meet and get to know. \u00a0\u00a0\u00a0<\/span><\/p>\n

Building a home overseas is a large task – and an adventure no less. \u00a0\u00a0The more we plan, the better off we will be. \u00a0\u00a0Getting it right, or mostly right, the first time is a very worthwhile goal, and a goal that is achievable if we take our time and do as the carpenter says, \u201cMeasure twice. \u00a0Cut once.\u201d \u00a0\u00a0<\/span><\/p>\n

Look for an upcoming article in this series discussing the process of moving, what to bring, what to leave home, and how best to decide. \u00a0The decision making process is the key. \u00a0More on that soon.<\/span><\/p>\n

Did you miss Part 1? Click here to read it now!<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Building a home overseas is an adventure. \u00a0\u00a0\u00a0\u00a0It can be a wonderful experience if we plan ahead, stay focused, and admit that we don\u2019t know what we don\u2019t know. \u00a0\u00a0Part one of this article covered the design, engineering, and the selection of a builder. \u00a0\u00a0Part two covers rule of law as it relates to contracts […]<\/p>\n","protected":false},"author":238,"featured_media":9050,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"footnotes":"","_jetpack_memberships_contains_paid_content":false},"categories":[3],"tags":[],"yst_prominent_words":[1890,14108,14106,5143,14102,14103,14107,9436,2149,9096,2461,1895,8987,5128,3299,13691,14104,8224,3915,14105],"acf":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2017\/01\/CobbFeatureHouse.jpg","_links":{"self":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/8746"}],"collection":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/users\/238"}],"replies":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/comments?post=8746"}],"version-history":[{"count":5,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/8746\/revisions"}],"predecessor-version":[{"id":40941,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/8746\/revisions\/40941"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media\/9050"}],"wp:attachment":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media?parent=8746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/categories?post=8746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/tags?post=8746"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=8746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}