Doing construction or renovation works on your property is always stressful, mostly because you have to deal with contractors. Apparently anywhere in the world contractors tend to be informal, don’t offer certainty on a timeframe and can’t guarantee the quality their work. But if you are foreign and you are hiring a contractor in Mexico, things can be even more difficult due to several factors such as the “mañana” time, the questionable honesty of many of these contractors, and the language barrier. If you bought a property in Puerto Vallarta that still needs some work and you want to transform it into your dream home, you have to be very careful when engaging with a contractor and specially when giving him an advance payment or any kind of payment because you may never see that money again.
So how can I be legally protected if I hired someone to do renovations or construction works on my property?
The first step is to sign a construction contract. This contract has to be precise enough and it should include certain clauses for your protection, such as a description of the work to be performed, details of the materials to be used, a calendar for the performance of the works, a calendar for payments, the obligations and liabilities of the contractor, penalties in case there is a delay in finishing the work, and so on. The advance payment should never be more than 30% of the total value of the contract. It is also advisable that you ask the contractor to hire a surety bond for the advance payment, a performance bond, and a hidden defects bond.
And beware of social security and labor obligations!
You should always verify that the contractor is complying with his obligations as employer before the social security and labor authorities. If the contractor is not fulfilling these obligations, his employees or the Social Security Institute (IMSS) can go after your property since it’s considered the main place of work.
A professional and honest contractor is not easy to find, but now you know that you should always have everything on paper and that way the money you decided to spend in upgrading your home in Mexico, is at a minimal risk.
