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I’m sorry if I missed this in a past post, but ironically, I’ve been in CR for most of the summer, and did not access the discussion forum much at all.
In any case, we finally signed up an architect for our project in Manuel Antonio. We hope to start building with in the year, or less, and the idea was brought up by someone there who has built a few places to pre-buy the steel and cement, and store it.
According to her, it may be cheaper to store the materials then to pay the price increases in materials that will surely occur.
I am curious to know if anybody has an opinion on this.
If one were to pre-buy, are there indicators as to when will be the best time?
Do prices fluctuate, or do they simply increase steadily or otherwise?
One person in CR speculates that because China has all but finished building for the Olympics, that the demand for certain materials will lessen, and prices will drop……
Aren’t we only talking about a handfull of buildings ?
I imagine that the surge in China’s need for materials goes far beyond staging the Olympics.
So, any thoughts?…..
Thanks!
Mark, in Key West…..for now.There are advantages and disadvantages to this. While prices are rising dramatically for steel and concrete it cannot continue at this pace. It should slow or stop for a while (we all hope). You need to look to see if the projected price increases are much greater than interest your money may earn elsewhere. Then there are other costs.
The most serious problem is storage. Do you own a warehouse or storage containers? Materials must be stored racked to prevent breakage or warping. Materials must be kept dry to prevent rust, corrosion, mildew and hardening (of the concrete). In a normal North American shed or garage a bag of cement may harden in a year or two. In sodden Costa Rica. . . I do not know, but definitely less.
Storage also means security problems. Property theft is very high in Costa Rica and building materials are prime targets. Lock a shed on your property and come back a year later and the you may find the materials AND the shed missing. . .
So, you need a good dry storage building and security to protect it. You might think that you will have someone on site full time once construction starts but much construction is seasonal and there ARE holidays.
If you have read Scott’s book you will know that you need a trusted contractor that takes responsibility (by contract) for missing tools, equipment and materials. Not only must he agree but you should want him to have the financial wherewithal to uphold his duties in this regard. This person may supply the needed security OR be the security. But you need to let him know he will be responsible for a small mountain of materials. HE may not want that responsibility.
SO, while theoretically it may be a good idea there is more to it than just buying the materials and throwing a tarp over them. Ask your contractor. The added costs may not result in any savings.
I have been building and purchasing materials in Costa Rica since 1992. On various WLCR threads about construction in CR, you may find prices thrown around for the cost of construction materials and which distributor has the lowest prices. Certainly, buying in volume has its benefits, however, there are risks involved that the major distributors have take into consideration and factored into their pricing. The largest distributor and local manufacturer of building materials, Abonos Agro as well as the largest retail building supplier, El Lagar, were recently purchased by a multi-national conglomerate. I would suggest leaving the volume purchasing, warehousing, security and transport to the big distributors and focus on tightening up your Construction Specifications and Timetable for completing your construction. You can review articles about construction on the following WLCR threads;
https://www.welovecostarica.com/members/1780.cfm
https://www.welovecostarica.com/members/1718.cfm
https://www.welovecostarica.com/members/1093.cfm
If you would like to review some construction specifications tailored to Costa Rica, visit, http://www.costaricahomebuilder.com and go to the Documents page where you can select the Construction Specifications document that lists many items to consider when building in CR.Pay for materials yourself, ensure *all* paid for materials are delivered, and ensure they are guarded during construction. You can get the same “contractor discount” that contractors love to tout by simply negotiating with the local suppliers and set up a few accounts with them.
Hi,
If you will be in CR during the build, you might consider this approach. The combination of contractor overcharging for materials and some of them disappearing might be a larger concern than a price increase over the next year. Having known several people who have built in CR, over time they (commonly) saw the following scenarios:
Contractors ask for cash to order or buy more materials, provide a receipt from the purchase, but the # of bricks delivered is less than the # listed on the receipt…
Contractors ask for cash for materials, and then use it to pay someone else that they owe, and tell you things are paid for but back ordered…
Large stashes of materials are targets for thieves (which can be your workers) A percentage disappears and unless the owner is on site daily, who would notice?
Overseeing the building of your home in CR is no pic nic, but it’s not impossible either. You catch mistakes and other issues while there is still time to correct them. Doing so can be considered building instant equity, easily 6 figure equity on a midrange (by US standards) home, compared to what you would pay for a finished home. Plus you have the piece of mind knowing that it was built well.
If you hire a contractor, you can bet that he will not spend a lot of time on the property and thus not catch some issues, and that you will pay his salary at least.
Start asking around now to find a reputable work crew. One strategy is to connect with others who are currently well into their own construction, and happy with their crew. Then you can see the results and negotiate to have them build your house next!
Just some things to consider and good luck! Manuel Antonio is *muy bonita*!
**Note**
I do not intend to indicate that contractors or workers are generally not to be trusted. But some are. Also, with the construction boom in CR and specifically from Jaco on south to Ojochal, the best and most trusted workers in the region are in demand. Be cautions, but not paranoid, and monitor things. Just like you would on any other significant investment…Edited on Aug 10, 2008 17:58
Good point, have a friend building a b&b, did not count every item on a delivery—driver was in a ‘hurry’, soon found he’d been shorted about half his order and after calling the owner found himself on short end having lost about $1,000. Count it, and note on delivery receipt if short.
ed fJust like anywhere else in the world, you get what you pay for.
Some folks decide to move to a foreign country and become a builder. Many have found out the hard way, that it’s best not to try the “Do It Yourself” method. You need to acclimate to the culture and speak the local language before you can understand what you’re getting yourself into.There is no yellow brick road in Costa Rica. Building even a small project is more than a full time job and is definitely not the best way to begin your new life in paradise. Unknowing and inexperienced foreigners, getting themselves into construction projects they have no idea how to complete, have broken many dreams of living in paradise.
You must do your homework, just as you would do in the real world. Find professionals, whom you can communicate with, and stay with them for as long as they continue to provide good work. If you’re looking to educate yourself in order to build your own home, you may find the on-line forums to be the school of hard knocks.
Chrhomebuilder is right! My suggestion is certainly not the best plan for many. I know some folks who have done so successfully, but don’t know at all that I would want to try it myself, especially if arriving to begin my retirement! My suggestions are an option, nothing more and nothing less. You don’t want your home sliding down a hill like a current article here describes!
All I can say is *monitor* your contractor and construction workers, and pay as you go. At least one contractor highlighted in welovecostarica has a poor reputation in the eyes of several owners he built for. I refuse to name names, but the point is that I encourage anyone building their dream home to strongly monitor all activities related to it.
You really would want to meet with the owners of homes who any possible contractor has constructed, both to see the quality and to get advice.
Good Luck! It will turn out great if you do due diligence!
Please either post here or email me privately if you prefer pweisel1
I need to know who exactly you are referring to when you say that: “At least one contractor highlighted in welovecostarica has a poor reputation in the eyes of several owners he built for.”
Scott Oliver – Founder
WeLoveCostaRica.com
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