Raw Materials Costs Force Costa Rica Construction Costs Higher – Plus other costly mistakes.

Construction Costs Rise By 30% – New home prices have risen by 15-50% in one year.

According to SteelOnTheNet.com since the end of April 2007 up to the end of April 2008 global prices for iron ore (98% of the mined iron ore is used to make steel) have risen by 66%, with coal prices 104% higher and in Costa Rica, according to La Nacion research published on 24th May 2008 we have seen the following increases in the last 12 months:

1. Varilla #3 (1/4″ steel rods used in so much construction) have risen by 64%
2. Varilla #2 (3/8″ steel rods) have risen by 55%
3. Varilla #4 (1/2″ steel rods) have risen by 42%
4. Concrete blocks have risen by 100%
5. A bag of cement has risen by 15% and …
6. Zinc laminate has risen by 21%

La Nacion estimates that due to these dramatic increases in costs of the raw materials a home of 100M2 (1,076 square feet) would cost 30% more to build today than it would have cost this time lst year.

It’s no secret that construction means investing à lots of money, but making good real estate investments means being well informed.

Apart from the fact that construction costs have risen dramatically over the last year poor construction practices are common, and if you are building or thinking of doing so soon, you shouldn’t miss out on getting expert recommendations.

According to engineer, Rolando Coto, one problem is the responsible professional’s low level of supervision or control since he influences the site foreman and the builders. “This leads to wastage of materials and carelessness when using them because time is short and it’s a rush to finish the construction in the agreed time,” remarks Coto.

He adds that not meeting technical specifications or sticking to the dimensions stipulated on the plans are other anomalies.

Not meeting specifications means that some stage of construction might have to be demolished and rebuilt. This translates into a waste of materials, time, effort and man hours.

However, architect, Marco Vinicio Ramirez points out, “if specifications or planned dimensions are not followed, the only person responsible is the construction manager, call him the contractor or site foreman or whoever.”

Good construction practices respect the correct procedures and use of materials but mistakes can occur along the way. Here are some of the most common mistakes:

1. Cheap contractor: As the saying goes, “you get what you pay for”. Engineer, Allan Herra recommends taking experience, references, construction team, tools and the contractor’s men into consideration when working out the estimate for the work.
2. Too much trust: According to Herra, when an owner places all his trust in the contractor or supplier, the budget often goes into the red with the risk that the work is abandoned half way through.
3. Poor quality materials: Using defective materials that don’t meet specific building standards forces the constructor to replace them with the subsequent delay in the project and additional costs. Engineer Jose Roberto Solis recommends buying certified materials, a sentiment shared by Ramirez who adds, “sometimes due to the constructor’s negligence or the supplier’s dishonesty or ignorance, materials arrive on site without having the minimum quality needed for the work”.
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4. Poor workmanship: Sometimes the workmanship isn’t the best and according to Coto, there are several reasons for this – little or low technical training; poor pay; and social problems that affect the work force (alcoholism and drug addiction, etc).
5. Under-budgeting: The ideal is to start with a budget for the completed work that will let you estimate how much is being spent as the work progresses. However, many people don’t take into account that increasing the construction area or adding better-quality fittings will add onto the expenses and upset the budget. Sol+¡s emphasizes that it is important to anticipate any price adjustments for materials by consulting the National Institute for Statistics and Census index rates.

All these are common when people don’t do their homework carefully at the time of making extensions or improvements to their home but irregularities can also occur when work is managed by professionals.

Some of the more frequent are leaks because of insufficient overlaps on roofs; poorly mixed concrete; poor plastering; and cracks in the walls.

According to engineer, Mauricio Arce, trying to pour concrete over bad ground without doing prior soil studies will create uneven settling that can fracture the building. He warns, “With poor construction practices, two errors are usually found: those that can be easily seen, and hidden faults that take longer to appear but cause greater damage”.

The bottom line is to contract the services of a responsible professional and site manager that can draw on qualified workers.

Construction Managers Have Their Word:

“Unskilled labor” says Edgar Alvarado of San Jose. “For me, the most common mistakes come from hiring people who aren’t qualified, using poor materials during the process and not applying the Anti-seismic Code.”

“Poor administration” says Rolando Segura of Alajuela. “Bad practice often comes from a bad administration of the work; the client puts the pressure on during the construction and it becomes a race to meet the delivery date.”

Our thanks to Hassel Fallas & Gloriana Gomez and our friends at La Nacion – Costa Rica’s largest Spanish circulation newspaper for their permission to summarize their articles in English…

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Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.