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I’ve been advised by the contractor who will be building my house in San Isidro de El General that I should engage an accounting firm to handle an escrow account to manage funds that are related to the construction. The accounting books for my S.A. corporation would be transferred to their keeping and they would maintain the books according to Costa Rican law.
I’ve not seen this topic covered in the forum before and I’d like to know if anyone has had any experience with this situation. Is it a wise step to have an accounting firm handle transfer of my money to the contractor? I thought that I would just open my own bank account and write checks to my contractor as she needs them. It seems to me that having an accounting firm do this needlessly adds a middle man to the equation. I’ve never been a corporation before, though, and I’d appreciate some advice as to the best way to go.
Thank for any help.
editer
What you suggest seems like overkill. What I would recommend is that you keep your architect involved in the project to completion and require him or her to certify that sufficient work has been completed satisfactorily to warrant the next disbursement to the builder. I can’t imagine that an accounting firm can verify completion of one phase of the building or another, so just what service would they really be perfoming? What value might they add?
There are construction auditing firms here that are very good at this type of thing… I have no idea what size of homes/projects there are involved with but will meet with one of them next week and will report back in a few weeks…
Scott Oliver – Funder
WeLoveCostaRica.comThanks Dave and Scott,
Construction won’t start on my house until next November, so I have time to consider this option. Thank you so much Scott for looking into this. Another reason I depend so much on your web site to help me do my due diligence.
editer
Hi Scott,
Have you had an opportunity to meet with any of the construction auditing firms yet? I’ve signed with E&T (Escrow and Trust) Solutions in San Isidro but I haven’t sent any money down yet. I’m curious to know if this is a secure and efficient way to get money to my contractor.
Thanks for any information,
editer
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