Costa Rica Construction – Red Tape Presents Obstacles to Construction

Building a large hotel or residential project implies having to carry out a series of steps prior to building, which can take up to two years.

One of the main obstacles is that institutions take longer to process permits than the law allows. On the other hand, there are permits that take only one month to be processed but since institutions are allowed five months, they use the whole time allowed.

But this is only one of the situations that arises to block the way and cause many investors not to build here.

Another point that drags out the process is that response time is not stipulated for environmental-impact studies. The entities involved can take all the time they consider necessary.

Furthermore, the concept of “silence means assent” (when an institution does not answer in a given time, it’s considered a “yes”) does not exist for these institutions. In addition many steps must be taken in specific order, i.e. one permit must be allowed before another one can be granted.

Local government: Many mayors and municipal employees do not have the right training and little developmental vision and are often fearful when faced with a large-scale project. Their inexperience and anxiety slow down the process.

The Institute of Municipal Development has tried to train municipalities but admits that it is not enough. Every four years they give a one-week workshop on transparency, efficiency and planning. The municipality is in charge of maintaining order and responsible development in the community while at the same time promoting competition and investment.

When problems arise with municipalities one can appeal to the service comptroller in the same municipality, to the Defender of Residents, the Government General Comptroller and to the Public Ministry

Tardiness in getting building permits means a risk to the investor and discourages many, who stop trying and take their investments elsewhere.

Good organization is the best way to improve the process. Pre-planning and hiring one or two people to do the paperwork helps. A large-scale project can require as many as 150 steps, which can take longer than expected.

Studies are being done on how to improve the legal process and findings will be presented to the new government.

Look For Support in the Law

One of the most important advances in legislation is the law that protects citizens from excessive requirements and paperwork: Law No. 8220 went into effect in 2005 and has helped considerably, but not enough.

Legislation: stipulates that once papers have been presented to an organ or public functionary, it cannot be required again for the same step nor for any other step within that organization.

1. Response Time to petitions must be adhered to.
2. On the other hand, the law does not stipulate new or shorter time periods.
3. The law is not being applied in its totality, however people have complained and received positive responses.
4. The law of “Silence is Consent” is being considered for every aspect of building except environmental-impact studies.
5. If a government official does not follow Law 8220, no sanction is applied.
6. Reforms to this law are under consideration in hopes to make it work better,

Our thanks to our friends at La Nación – Costa Rica’s largest Spanish circulation newspaper for their permission use this article.

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.