Costa Rica Construction Nightmares

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  • #187476
    Alfred
    Member

    The two articles on the front page (construction horror & shark lawyers) are enough to scare the pants off many people wanting to build or buy. But horror stories also serve as a lesson. Shoddy workmanship happens all over the world. One story I know of was an attic floor joist that had shrunk sufficiently on new construction, over the dry northeast winter, as to have fallen through to the floor below. Everyone who buys a new home has seen settling cracks and other defects. Some can’t get the builder to do warranty repairs. Some builders go bust, the corporation then gets dissolved, leaving the homeowner with little recourse but to sue. Then you run up against the problem of trying to pierce the corporate veil to get satisfaction from the builder.

    In a foreign country the problem must obviously be compounded by a differing legal system, building code, and language barrier. I’m no expert, but this I’m sure could get frustrating.

    Doing you homework may not even be enough to protect you. Builders, Realtors, lawyers, and other professionals may not be trustworthy, as we see in these articles.

    You have to find people with a proven track record. You have to talk to as many persons as you can that have gone through similar processes. Ask if they were satisfied, would they deal with these “professionals” again, and were they able to see examples of the contractor’s prior work, before signing on.

    Saving money because someone is cheaper, might be one of the costliest mistake you can make. We added a bedroom balcony that a couple of years after construction, leaked into the bedroom below. It was built by a contractor, when we did renovation, who was a friend of a friend. After a few years, I had to have another contractor rebuild the entire decking and rail, remove the French door access to it, and reseal the entire thing. Also replacing the sheetrock in the downstairs bedroom. Ten years later, if the wind blows in a certain direction while it is raining, it leaks again. Now we will be on the third go-round to resolve this.

    I don’t want to sound like a killjoy, or a commercial for Scott either, but you have to do the research. Google people. I do it. I wish I had the Internet sooner. You want to be at least assured of getting reasonable service from anyone you contract with. Just because someone has a nice website or advertisement, does not guarantee good service. When you find good people who have been doing their job a long time, they will not be afraid to show you some of their past work. And go and look at the projects, not just the photos. Knock on a few doors and ask the homeowners if they are satisfied.

    This is just a few of the things I would do now, after having gone through some of my own headaches.

    #187477
    DavidCMurray
    Participant

    I must concur in everything that Alfred says above. It is critical to do your homework. Then do it again.

    Costa Rica has its statistically-appropriate share of charlatans and ignoramuses, just like everywhere else on the planet. Some of them tell a great story, smile at all the appropriate times, maybe have the purest of motives and intent, and then screw up the works in world-class fashion. Gringo, Tico, or anybody else, you have to protect your own interests.

    It is too easy here to be taken in by assurances granted in good faith or otherwise and not recognize that you are in a serious business relationship. If you wouldn’t trust a total stranger in the U.S. to perform, don’t trust one here. And, as Harold and Maude, the victims in the recently posted article, relate, they were dealing with their life savings. Their opportunities (and probably yours) to earn another stake and begin again are pretty limited. And the situation is made worse still if you’re dealing with a small-time operator who has no assets to back up his potential failures.

    I have the privilege of talking to a lot of folks who are about to undertake a move to Costa Rica and a building project and I am aghast at the number of them who are risking their total assets on the promise of someone they have never investigated. They have no concrete (sorry) assurances and no practical recourse if something goes wrong. It is, as someone else has said, as if they check their brains at the Immigration desk at the airport.

    Whether one decides to build here, in the U.S., or elsewhere, be skeptical, be very skeptical. This is probably your one chance to get it right.

    Edited on Oct 23, 2007 05:47

    #187478
    *Lotus
    Member

    It is strange how we “check” our brains at the airport. I had the same kind of thing happen when I was building a cabin in the Northern Catskills in NY. I just thought how quaint it is up here and I can trust everyone I meet it’s like Mayberry!! Not! Luckily early on I met one gentleman who took some pity on me after pulling me and my pregnant wife out of a ditch. When he got to understanding my attitude he quickly pointed out it ain’t Mayberry. And these quaint country folk look at you like your rich because you’re from NYC and can easily afford to be ripped off. Everyone was very nice all smiles, everyone was qualified to do what ever work you asked. And even when someone who claimed to be an electrician and didn’t know what a 220 circuit was, he was still all smiles and very pleasant…Lesson learned. You get to Costa Rica and it’s all smiles and sun and Pura Vida and you want to believe you have found “paradise”, where no one lies and a firm hand shake will do.

    #187479
    Alfred
    Member

    Checking brains at the airport has to be one of the truest lines spoken. I think we all do it to some degree. We think we have found paradise, no matter what anyone else says. We think we can conquer the new found land like nobody before us had. “The anticipation is always greater than the realization.” A quote from my 7th grade English teacher. How true it is.

    Lotus, I don’t know how long ago you bought in the Catskills, but I know some people that had properties upstate that they thought would never be worth too much. After 9/11 the properties skyrocketed in price, and they sold and made a tremendous return. Many people wanted to buy and build away from NYC, “just in case.” For years before, I toyed with the Idea of upstate property. Another opportunity lost.

    #187480
    Alfred
    Member

    PS Scott, Thanks for the correction on the title. My head was a little foggy this morning…

    #187481
    guru
    Member

    I have a big problem with the “solution” in Becky Clower’s article. It should seem fairly obvious that this is not just a case that the builder was ripping off the client but that the builder DID NOT KNOW WHAT HE WAS DOING! Just because the builder agreed to it right THIS time doesn’t mean he knows how or has the finances to do so.

    I have seen this in the US as well. It happened to my parents who I thought knew better. They trusted the local building inspections people to protect them from bad builders. The result was that they ended up a home that has a swamp of a “finished” basement, plumbing drains that run uphill and would require demolishing the house to fix, shingles and siding that were falling off in a few years. . . the list goes on and on.

    In my parents case the builder was a young man that had worked for his family contracting business and had gone out on his own. He talked a big story but knew nothing. He had no craftsmanship nor management skills. He could not properly instruct or control his workers. We suspected a lot of the money paid him may have been going to a drug habit. . . Like Becky Clower they figured this out well into the construction process and thought they had to deal with the builder to finish the job. They put more good money after bad and paid a LOT more than if they had cut their losses and gone with a new contractor. The finished result is what they have now. Now in their 80’s and living on social security they are faced with a house that is going to have enormous maintenance and repair costs.

    They should have fired the contractor and sued for the entire amount of the job as well as making sure that he could not work as a contractor. YES, they would have not gotten complete satisfaction. YES, they would have had to pay much more. There was NO happy way out. But 20 years later they would be snug in a comfortable home that would not need expensive repairs that they cannot afford NOW.

    To prevent things like this you have to do what has been recommended by others about investigating the builder and having a tight contract. THEN you have to personally inspect the work as it progresses. That contract needs to have check points and provisions for corrections. Even our esteemed Scott O. got stuck with a house facing the wrong direction! While many folks worry about final finish the most important work (especially in WET, earthquake prone Costa Rica) is the foundations and drains. Underfloor pipes and conduits are nearly impossible to fix. Inadequate footings result in settling and cracking well after the construction is complete. Water proofing is almost impossible or VERY expensive to fix later (as noted in a recent article here). AND the Tico cement finishers are VERY good at covering up the kind of mess that is shown in Becky Clower’s article. Once finished you cannot tell if the wall is solid or full of structural gaps until it starts to fail long after the contractor is gone.

    In most places in Costa Rica you do not call a concrete company to deliver X number of yards of concrete, of a specified quality, properly mixed in a truck to be delivered at a given time. It is mixed by hand or with small on-site mixers in small batches. This is grueling work that once started needs to continue to completion for each section. The larger the job the larger the on-site mixer. Many small builders in CR do not have mixers and must rent or borrow them OR do without. . .

    And by all means NEVER take the lowest bidder unless there is some outstanding reason that person can do the job for a less (Lives the closest, operates the local materials supply or saw mill. . ). Low bids are often NAIVE bids.

    Another problem in Costa Rica is the short building (dry) season in much of the country. IF you and your builder are not completely ready to work at the first break in the weather and are prepared to STAY ON THE JOB then you may need to wait another year to start. Just look around at the furious rate that new construction goes on in Costa Rica in January and February. Buildings that get under roof in the dry season may get finished within the year. Those that don’t may have to wait until the next dry season and hope that water does not damage what was built and that the builder is still available. So all that critical below ground and under floor work mentioned above is being done under a time crunch. So it must be done quickly, accurately and efficiently. To do good work fast requires experienced skilled workers AND close supervision.

    I hope Becky Clower gets the house of her dreams but I have serious doubts.

    #187482
    Alfred
    Member

    Guru, Supervision on a project is paramount. If you are having construction done in your native country and can check the progress you may have a chance to head off problems. When having construction done in a foreign country, and you possibly being thousands of miles away, you are just begging for problems.
    I work with a Honduran national who is building a home in his country. His wife supervised the project daily in Honduras. He did not have Internet access, so his wife would send photos of the progress to me at work. Being a very intelligent person, she took pictures of every stage and aspect of the construction.

    Like you said, once the finish is on the walls, all sorts of mistakes can be covered up. You have to be vigilant. It is your money, and you should be very concerned how it is being spent. No one will watch out for you as well as you can for yourself.

    #187483
    mediatica
    Member

    Guru: With all due respect, you assumed a lot of things about my article, and you know what they say about that!

    I can assure you, that this story is not about my house. How would you know one way or another? I don’t think we’ve met, but Scott Oliver has and he can attest it’s not MY house we’re speaking of. Not that it’s any of your business, but my husband and I bought a house that was existing a few years back. Let’s get that straight. I have not had the joy of having to construct my own house YET, but I will be doing that next year. The couple I spoke of were NOT clients of mine either. Scott suggested changes of the names, and I agreed, to protect the identity of all involved. I can say, there is some good news: The couple called me to let me know that the construction has commenced and so far so good. I will be happy to write a follow-up article once their construction is complete. If ONE person gets the bulk of what I implied and learn from the couple’s experience, that is the goal. Anyone would be naive to think that they are immune from these things happening to them. Anything can happen to anyone, theft, bad building experience, the list goes on. However, if you take all the precautions possible to avoid these situations, the likelihood of this happening to YOU decreases significantly. Also, yes, check the builder, by all means. Obviously he didn’t know what he was doing. That was one of the points of my article. Sorry you did not agree with the solution. That was my opinion, and I am entitled to that.

    Warm Regards,

    Becky Clower

    Edited on Oct 24, 2007 14:44

    #187484
    Alfred
    Member

    Becky, I certainly don’t want you to get the wrong idea in that I am nitpicking or correcting you on your post. The reason I put up this topic is because there ARE naive people who assume it won’t happen to them. Stuff like this has happened to me, and other people I know. And we all thought we had it figured out.

    You are a professional, and I am sure you have seen the “pie in the sky” look people get when they want to purchase homes or property. Many RE salespersons and contractors can and do take advantage of the “paradise” mentality would-be buyers can have.

    I wouldn’t want to speak for anyone but myself, but I did get the meaning of your article, and was hoping others would post their horror stories and the solutions they came up with to remedy the situation.

    I realize your post was directed at someone other than me, and I would not even think of questioning your integrity. I believe you are an honest professional, and you have your clients interests uppermost in your dealings with them. Just as you took the time to help the people who weren’t even you clients in the article, I would think all your clients get the service they deserve.

    I look forward to the followup article. I hope they are able to get it resolved. It is not fun to have your life’s savings go down the drain due to some unscrupulous individuals.

    #187485
    mediatica
    Member

    Hi Alfred:

    No, I wasn’t directing my comments towards you. No worries. Of course, this is an open forum, and everyone is entitled to their opinion. However, I wanted anyone out there who has read that article to understand that it was NOT my home I was speaking of, nor clients of mine. If it was my place, I would have said so. If you saw, the house in question is in the area of Naranjo. I work the area of northern Guanacaste. That’s all. I couldn’t agree with you more. I look forward to writing a follow up when the time comes. I am all for posting a true good story of a couple who was able to correct all the wrong done with the wrong builder. Pura vida!

    #187486
    Alfred
    Member

    I know your post wasn’t directed at me, Becky. I appreciated the article you wrote, and I think you have done a great service for those people. By exposing fraudulent or incompetent individuals, you help all of us wade through the garbage that is out there. CR is like any other place, and maybe more so. It can be filled with pitfalls. It is encouraging to know there are people like you and Scott who put themselves up front, and sometimes take the hits, for doing the right thing. Look at all the other blogs and forums, and you will see the difference. There are some who will knock their competitors unjustly to gain advantage. It always comes back to bite them.

    I’m not just saying this to curry any favor with you or Scott. Over the years I’ve seen my share of dirtbags in many fields of endeavor, and appreciate the refreshing change of seeing someone who puts people ahead of profit. The two, people and profit, are compatible. If you put people first, the profit will follow. It all depends on how you conduct yourself, and the things you truly value. My business practices have always been upfront and above board with anyone I’ve dealt with. Our family business has been around for 95 years, and still going. We may never become rich, but at least we can sleep at night.

    Sometimes, there are those who feel the expeditious thing to do in business is to rip someone off. In the short-term that may work, but when you are trying to build a future and a solid business, customers always have to come first.

    I wish you continued success.

    #187487
    diego
    Member

    Well put – Take a daily dose.
    This was a reply to David’s post.

    Edited on Oct 27, 2007 14:59

    #187488
    guru
    Member

    Becky, I am sorry I forgot that it was not YOUR house between when I read the article and made the post.

    I’m glad the subjects of your article are satisfied with the work going on now. There should be a follow up when the work is completed and then 5 years later when hidden defects would start being obvious.

    The problem many people have with inspecting work they are having done is that they do not know enough about construction. I’ve been involved in construction a significant part of my life and have designed and built a number of sizable structures mostly with my own hands. Everything from site studies and plans to forming and finishing concrete to electric and plumbing. Every time I visit Costa Rica I study the construction going on and have been trying to figure out what are good methods of construction and what are just the run of the mill cheap local methods. They do some things in Costa Rica that are unbelievable from a Gringo point of view. Some work due to the different climate, but I wonder about others.

    With what I know I would still be leery of trying to inspect and comment on the local construction methods. The SYSTEM in Costa Rica is to have the Engineer that approved the plans inspect the work. Good detailed plans are part of a good contract. However, many people seem to be working around the system. Even when the Engineer inspects the work you need to be educated enough to ask him the pointed questions and understand the answers. When there is no Engineer and the Builder is playing the part then your REALLY need to know your stuff and keep a close eye on what is going on.

    I am going to be building in Costa Rica in the future and even though building and making things is the joy of my life this particular task scares me.

    Reading plans and specifications is similar to reading a contract. Some is graphical, some is in text. Are there any loopholes? Are ALL the materials clearly defined? Can the builder substitute materials? DO the plans show proper details so that the finish items (trim, mouldings, gutters, hardware) meet your expectations. Who and how are changes approved and at what cost? Do the plans include landscaping as part of the price? Is final site and interior cleanup part of the contract?

    In this case it will all be in Spanish and NOT common conversational Spanish but technical Spanish with local technical jargon (much of which is in no standard translation book). Contracts written by lawyers can be reasonably tight but in this case much of what they do is refer to the plans as approved. So the plans are very important. THEN, seeing that the plans are followed.

    The local system with an Engineer doing the inspections is a good one. However, you need to be sure HE is diligent as well AND that you understand enough of what is going on.

    #187489
    karlafaria
    Member

    hello alfred i m from venezuela and my english is bad, but,i would like to know more about the life in costa rica, because my country is having a serius problem with the security, is probably that we have a totalitary estate. and a have a family that care and im thinking betwen costa rica and panama. well. i apreciate very much your opinion and if you can write in spanish better, if you dont know, no problem. i can read your lenguage very weel thank you. karla

    #187490
    Alfred
    Member

    Karlafaria, I believe there are other people many more times qualified to answer your questions about a choice of where to live. I have only visited Costa Rica and have never actually lived there. So many other people on this site will be able to give you a more informed answer, and I suggest you put up a new topic to get that information.

    One thing I can tell you is, I have spoken recently with a family that left Venezuela seven years ago. They still have relatives there and told me it is getting very bad. Caracas has about 100 murders per week, and they will kill you for a pair of sneakers. I don’t know if this is true or not, but it must be bad.

    To all other members; When anyone thinks I might be an expert on Costa Rica, I think I might be making too many posts.

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