Real Estate FYI / How to Build a House in Yucatan

How to Build a House in Yucatan

How to Build a House in Yucatan

1 September 2015 Real Estate FYI 87

Before we moved to Yucatan, we spent two years renovating a 70-year-old Spanish Revival home in central California. While the process was initially quite enjoyable, several unexpected problems resulted in a project that took twice as long to complete than originally planned. It also cost a considerable amount more than we had budgeted. In the end, we swore off another project and bought a fully renovated house in Merida’s Centro Historico for considerably less.

Oddly enough, it didn’t take long before we found ourselves engaged in the renovation of a smaller colonial house to use as an office. Perhaps we’re slow learners, or we just can’t accept defeat. Yet, contrary to our expectations, the project was completed quickly and on budget, despite the arrival of a major hurricane near the end of construction.

If you plan to renovate one of Merida’s lovely colonial homes, or to build a new home in the area, don’t be surprised if your experience is like either or neither of ours. No matter where you are in the world, building a house can be simple or complicated, easy or hard, a dream or a nightmare.

Having said all that, there are some things that you should consider if you are going to build or renovate in Yucatan. Many of our readers have asked our opinions on this subject, so we are offering them in this article. By no means is this meant to cover every possible situation, and we would hope that anyone who has something valuable to share will comment below.

1 - Buy Local

The most important thing we have learned is that if you are building in Yucatan, then choose a local architect and construction firm that has several years of experience in Yucatan. Select those who have a portfolio that matches your tastes and a list of satisfied references. There are many here speak English and their firms have at least one additional person on staff who speaks English as well. Several architectural firms over the years have developed their English-speaking skills in order to communicate better with English-speaking clients. The local architect school, FAUADY, graduates more architects every year and is a well-respected school in Mexico. There are no shortage of competent, honest and creative local architects.

Many foreigners who come to Yucatan learn the basics of renovation and remodeling. Depending on the scope of your project, they may offer a reasonable alternative to using a local firm. But remember that they do not have friends or family in the business, nor in government, and it is through this network of personal resources that the majority of Mexican business gets done.

Local architects and contractors are well connected and know the local markets and best practices. They will be able to advise you on construction and design techniques that work best in a tropical climate using materials that are most common to the area. They know the authorities in the government and the culturally accepted way to make things happen. In the long run, they will probably achieve the results you want at a better price.

2 - Get An Estimate

Ask for a design and presupuesto (estimate) from more than one firm. Most will include the price of this effort in the cost of renovation and/or construction. The ones who are not awarded the contract will charge a nominal fee, which depends on the scope of your project. This process will educate you on many levels and help you to choose the best design, engineering and construction options. It will also help you determine which firm is the best fit for your project and is the most responsive to your needs.

Always obtain a design and presupuesto BEFORE starting work. It may be impossible to have a design that is complete in every detail, but the closer it is to including all line items required to complete the project, the fewer unhappy surprises there will be later on.

Most firms we interviewed will charge as little as 10% and as much as 30% of your construction budget to design, administrate and supervise your project. The amount you pay is not always a case of “you get what you pay for,” so be sure to shop around.

3 - Follow The Rules

Follow the laws of Mexico. In the past, many construction projects in Mexico have been preformed by an informal labor force and paid abajo de agua (literally, under water, but it means 'under the table'). Many changes by federal and local governments makes this approach more risky than it used to be. Avoid using free-lance labor on large projects, and be sure that all workers are paid Social Security. Not paying Social Security (IMSS... pronounced "eemz") may save you a few pesos, but you are taking that money right out of the mouths of the families being supported by the (mostly) men working on your house. And if anyone gets hurt working on your project, IMSS has them covered medically so that it will not come out of your pocket. Those abañiles (workers) work hard for you... paying them Social Security on top of their daily wage is only fair.

4 - Get A Contract

Obtain a standard construction contract from your Mexican architect or Notaria (lawyer). At a minimum, it should limit your liability for budget overruns and may include incentives for completing the project to a schedule. The contract should also stipulate that all workers be paid Social Security by the contractor (not you). The contract must be signed by all parties and notarized to be enforceable. All of the firms listed below will enter into a standard construction contract.

5 - Do Your Accounting

If the intended use for your finished renovation or new construction is a rental property or other income-producing venture, you should contract with a lawyer and accountant to establish a Mexican corporation (SA de CV) or limited liability company (S de RL de CV). You will need to report your rental or other income and pay taxes, or risk penalties and fines from Hacienda, the Mexican IRS.

6 - Permitame

Always obtain all required permits before beginning work. Many colonial homes in Merida’s Centro are designated as "historic" and will require a permit and inspection by INAH (National Institute of Anthropology and History). If you fail to obtain the proper permits, your project can be suspended and you will have to pay fines to resume.

We used to provide a list of local architects and construction firms that we knew to be good. But the list of known and good architects and builders has grown, and now it feels as if any list is leaving someone out. Longer too is the shorter list of architects and builders with whom people have had bad experiences. We will leave the comments to this article so you can read about others' experiences and opinions. But recommending or not recommending someone has become fraught with peril and is no longer practical.

7 - Check References

Suffice it to say that you should ALWAYS check references before you go ahead with someone to design or build your house. There are plenty of good people here in Merida with references. You could also check with Profeco, the federal government organization that monitors consumer affairs. If a business person in Merida has had problems enough that someone has reported them to Profeco, you can find out. If you do not speak good Spanish, consider taking a Spanish-speaking friend with you to make the visit easier.

8 - Have Fun!

This might be the hardest thing to do sometimes. Building a house anywhere in the world is stressful and has been known to break up marriages. Try not to take out your frustrations on your architect, your builder, your workers or your partner. Look at this beautiful thing you have the privilege of creating and enjoy the process!!

Suerte!

Profeco

address: Calle 49 No. 479-A, x 54 y 56, Centro, 97000 Mérida, YUC, Mexico
phone: +52 800 468 4212
website: https://www.gob.mx/profeco

Comments

  • molly 17 years ago

    We are in the process of buying a home in the area. Everything about the house is in good condition and very charming except the floor tiles. They are not beatiful tiles common to the area and are throughout the house which is generous in space.

    Does anyone have experience replacing tiles throughout an entire house which is otherwise in good repair? We are open to advice and recommendations of contractors to do the work.

  • Working Gringos 18 years ago

    Paul,

    As you've noticed by now, the range of building possibilites in Yucatan make it difficult to pin down a cost per square foot. You can probably design a house that will cost less than $30 or more than $100, depending on materials, practices, crew and your tastes.

    We have found that if you keep to local materials and building practices, and if you are not too flamboyant in your design, but you still want modern comforts like good water pressure and modern lighting, then a reasonable number is between $45 and $55 per square foot.

    Our architects have recommended several things to keep costs down while not harming our investment. Among these is the use of CPVC rather than copper plumbing, which has advantages in this environment and is not subject to damage from fire or earthquakes like back in California or other parts of Mexico.

  • Paul Frost 18 years ago

    Okay thanks for the great info. I found an architect and have crossed my fingers on making the right choice. I met with him last month and am hoping to see some drawings in the next 6 weeks or so. However, he does not do construction, only the drawings, so once I have the drawings I will be looking to have different contractors bid on the job. Any references would be appreciated. I am also trying to figure how much I should buget for construction. I have heard prices range from $24USD per sq ft to $150USD per sq meter. Since I will be building on the beach, I would expect the rate to be different than a sq ft or sq meter rate in town given how deep the building foundation must be. Can anyone recommend a set of numbers I can use for planning purposes?

    Thanks,
    Paul

  • Tim and Pam 18 years ago

    Thanks again to Working Gringos for timely and important information.

    My wife and I operate a small architecture and design firm in New York. Last year, we bought a small house in Merida. With a limited budget, we asked acquaintances here for names of Contractors and Architects; avoiding the better-known, (and more expensive) big names; looking instead for an english-speaking, maybe younger, less "established" partner.

    Our priorities, from personal experience, and friend's suggestions, were-

    1. english-speaking/ good communicator/ intermediary.
    2. innovative/ fresh ideas/ willing to listen, knows history and tradition, but not blindly fixed on Ex-Pat nostalgia.
    3. guidance thru, and experience with, local building regulations, requirements and realistic timetables.
    4. understanding of cultural nuances (esp. w/ albaniles!).
    5. a cellphone full of experienced workers.
    6. close, constant supervision!

    After alot of interviews, discussions, and estimates, (as well as some no-shows) we chose to work with Arq. Carlos de la Barrera. With his close supervision, we got a fantastic plumber and electrician, albaniles that actually showed up on Mondays, (for those w/ some experience down here, Monday, "St. Lunes Day", is often considered a no-show day), and a wonderful, finished house............within our budget.

    Feel free to contact us, www.odelab.com, with any questions; (e.g. we are happy to pass on tradesman's names) or other help. Or Carlos at itzaes@rocketmail.com

    Good Luck!

  • Building Our House IV 18 years ago

    [...] We did the leg work and took the time to learn as much as we could about the right way to do things. This effort resulted in our article, How To Build a House in Yucatan. [...]

  • jb linton 18 years ago

    i have found a property a short distance out of valladolid on which i would like to build a modest retirement home. there is no electicity available at the site. could you recommend a local builder with a knowledge of alternative energy production that might speak english.

    thanks, jb.

  • Mortgages in Merida, Yucatan 18 years ago

    [...] Architects and Contractors in Merida [...]

  • Ted Vanya 18 years ago

    Last year we rented a house in Telchac Puerto. Next door to the rented house a new house was built and I watched closely the daily progress and the way the Mexican workers did their job. Admiring the stamina and the loving care they had for the job on hand.

    One day a man showed up at our door asking for water for the construction because they ran out of their supply. The gentleman who was Mr. Victor Carrillo of Carrillo y Peon Arquitectos. This was the start of a relationship with Victor and his wife Ingrid. As greenhorns, we were considering to buy a hurricane damaged house and asked Victors opinion. He inspected the house and said that he could certainly repair a part of the house but because of many reasons he would not recommend us to buy it. Later, we found a building lot, 10 meter wide on the road by the beach, but a questionable width on the beach. Again, Victor warned us not to buy it, and it turned out that this lot was only 6 meter wide on the beach. Finally, we found a lot we liked. Now the problem was that the owner of the lot did not wish to wait for 3 months until the paperwork will be completed. We ended up that Victor bought the lot with our money, and I signed a Power of Attorney for Ingrid, who finally bought the land from Victor for me.

    You must understand that the Carrillos had to have our total confidence, we left ourselves wide open.

    To this honest couple of professionals we submitted a simple plan for our small house and transfered sufficient funds to build the house. For the final signing of the papers I came down,and allowed Victor to use our money for the building as he see fit. Victor and some friends we know sent us pictures of the progress of the building during the next three months. We arrived to Telchac after a 6 day drive from Ontario, opened the house, had a hot shower, cooked our dinner on our new gas stove and stored our foodstuff in our new fridge. The house was clean and ready for us. Next morning came the surprise, the obvious talent of this architect of making a pleasant building out of limited funds adding small conveniences, structural and aesthetic beauty where we expected only a box-like building.

    To answer the original question how to build a house in the Yucatan my answer is to find honest, talented, reliable professionals like Victor and Ingrid Carrillo are, and trust them with your dreams. They certainly came through for us with flying colours.

  • Arq. Victor Carrillo 18 years ago

    I'm glad that there are forums like this that help people from other countries that are planning to design, build or renovate in Yucatan with tips and info regarding the ways, customes and obligations from both parties prior to start a business relationship with a local architect. I have worked for a number of Americans myself and I have found out that most of the times problems arise because of a lack of communication between the client and the architect: the architect/contractor is used to a certain way of doing things and the client is used to a completely different way... if these topics are well discussed between both parties, I can assure you that building and living in this beautiful city is going to be a memorable and enjoying experience!. Greetings!!

    Arq. Victor Carrillo Alayola
    Email: carpe95@gmail.com

  • mario lope 18 years ago

    Hola a todos. It's funny I'm from Merida and I'm an architect, but I'm living in Texas...

    Me da gusto leer lo que expresan de mi ciudad, de mi gente y de companeros de profesion...

    Todo trabajo realizado en construccion se debe sacar permiso ante las autoridades y pagar el seguro social de los trabajadores, se puede pagar de dos formas: El contratista, previo acuerdo con el dueno en el presupuesto, ya que esto se cobrara en el trabajo, o el dueno puede pagarlo personalmente ante el IMSS con su permiso de construccion y existen tabuladores sobre los metros cuadrados de construccion, y en base a eso le cobraran, pero en este ultimo punto, solo hay que tener bien el numero de personas y los nombres de los trabajadores.

    La mejor opcion es que la pague el contratista, solamente hay que checar que en el contrato este estipulado.

    Como diseno de una casa, se cobra un % sobre el estimado del costo final, que va del 5% al 20% dependiendo del arquitecto.

    Tambien pueden encontrar otras opciones en la Facultad de Arquitectura de la UADY, ahi estudiantes de los ultimos cursos, lo haran mas barato.

    Lo mejor, es contratar al mismo arquitecto que te disena que te construya...

    Si tienen algunas dudas, por favor decirmelas, y podria ayudarlos con mucho gusto, incluso poniendolos en contacto con otros arquitectos, para que amplien sus horizontes...

    Email: mariolopemolina@hotmail.com

    -------------------------------
    [WGs English Translation:]

    I'm pleased to read what you have to say about my city, my people and my colleagues in this profession...

    All construction work should be performed with permission from the authorities (INAH and Ayuntamiento) and by paying social security to the workers, which can be done in two ways: The contractor, with previous agreement with the owner in a budget estimate, where this is part of the labor rate, or the owner can pay it personally to the IMSS (Instituto Mexicano del Seguro Social) with a construction permit. There are tables for the square meters under construction and you will pay based on these, but on this last point, you only have to have the number and names of the workers.

    The best way is to pay the contractor. You only have to check that this is stipulated in the contract.

    As for the design of the house, it costs a percent of the estimated total cost, which is going to be from 5% to 20% depending on the architect.

    You can also find other options at the UADY (Universidad Autonimo de Yucatan) Faculty of Architecture. There are students there in their last year of studies who will work for less.

    It is best to contract with the same architect who designed the house to also build it...

    If you have any questions, please let me know. It would be my pleasure to help you, including putting you in contact with other architects in order to expand your horizons...

    Email: mariolopemolina@hotmail.com

  • Working Gringos 18 years ago

    Most of the architects listed here would probably consider a project in Sisal.

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