by Kathleen Peddicord

Nicaragua is an awfully nice place to call home, full-time or part of the year. And more and more people who come to visit decide they’d like to be able to return regularly with their friends and families. They buy building lots… and then reality settles in. They’re faced with the proposition of erecting a house.
Building in a foreign country can be a daunting proposition, especially if you’re operating long-distance in a place where you don’t speak the language.My husband and I are in this position ourselves, making plans to begin construction of a house on Nicaragua’s glorious south Pacific coast. We have been traveling in the country for nearly a decade and have friends and business partners ready to lend a hand any way they can. Still, we’re nervous.
So many ways things can go awry. Whole houses laid out wrong, with rooms in the front that should be in the back and views of the hillside instead of the beach… retaining walls that crumble… foundations that crack… second-rate fixtures installed when top-of-the-line were stipulated (and paid for)… pools that leak… pipes that burst… (All real-life stories from people we know who’ve built houses in this part of the world.)

Successfully managing construction from afar
The most important thing is to recognize that you’re not operating in the States. Different building codes. Maybe no building codes. No inspection process.
The second most important thing (given the first) is to engage a reliable general contractor, or GC, who you’ve found with the recommendation of someone you trust and for whom you’ve gotten three current references. Best case (and what we’re trying to arrange) is to be in the country, on site, for the first month of construction. Then your GC can take over for you between your follow-up visits. If you can’t be on site when ground is broken and the foundation work, etc., is being done, your GC plays an even more important role.
Hire an independent agent to follow the progress of construction for you… to be your eyes on site. Someone living in the country for the duration of construction and who, preferably, speaks the language of the workers. We have someone living in the country that will be able to fill this role for us. When we finally begin building, we’ll get weekly updates and photos by e-mail.
Arrange for payments to be made according to construction benchmarks. Maybe 25% to start, 25% after certain milestones, 25% after the next set of milestones, 15% after another set of milestones, and the last 10% after you have been to visit the property and have assured yourself that you’re completely satisfied with the work.
One of the greatest advantages to building a home in this country right now is how affordable it can be, relatively. This means that you can build a spectacular home, complete with hardwood floors, French doors, Italian or Mexican tile kitchens and baths, wooden decks, air conditioning, and all the amenities for around $45 a square foot–a total of about $60,000 for a spacious two-bedroom home.
Or you could build a home that could be featured in the pages of Architectural Digest for maybe $90 per square foot. But these construction savings won’t last forever.
Nicaragua has been aggressively campaigning to increase the number of foreign visitors to the country over the past decade. More visitors leads to more buyers and that will lead to higher prices. The current slowdown in construction is an opportunity to find experienced work crews eager to work. Remember what I said about references.
The capital, Managua, has seen millions of dollars of new construction in recent years: office buildings, restaurants, apartment complexes, mini-malls. With any resurgence in this activity, construction prices won’t remain at their current low levels for long.

Tips for building in paradise:
* Identify what IS and what IS NOT included in the contract. For example: retaining walls, the pool, landscaping, etc. Get a firm price in writing, and be as specific as possible. Err on the side of detail - include electrical outlets, include the wall lamps by the pool (they’re in the drawing, but make sure they’re in the price), include the “hooking up” of the appliances.
* Understand how your house will look and what view you’ll have if all the homes around you end up being built.
* Understand all the maintenance costs – landscaping, security, pool maintenance, bug control (especially for a traditional thatch roof if you’re incorporating one).
* Consider whether you want to air condition the bedrooms, the public rooms, the hallways, or all of the above. This can make a big difference in the layout.
* Don’t let your builder change a thing without your consent or giving you a written quote as to how much it will cost.
* If you’re building on or near the water, use water- and salt-resistant materials on exposed surfaces (sounds obvious, but your builder may not remember).
* If you are going to put your house in a rental pool, remember that when you select furniture, bedding, sheets, etc.
* Make your home storm-proof and provide instructions to your property manager in case of a storm.
* Expect delays. The weather sometimes will be bad… materials often won’t arrive on time.
* Pick out your own appliances and finishings – the tiles, the air conditioners, the generator, the toilets, the light fixtures, etc.
* Get a warranty in writing from your builder, including such things as plumbing and electricity.
* A thatched straw roof looks lovely, but it requires much more maintenance than a tile roof. They say it lasts around five years. Hornets and scorpions favor the straw too, so that can be another vote for tile.
* Talk to your builder about “Covintec” sheeting. It is a wire-framed styrofoam sheet that you can use for walls and roofs. It has excellent thermal qualities and is designed for earthquake zones. It can also be used for pools. It is a great cost- and time-saver.
* Buy a generator or battery backup system, one that is proportionate to the size of your home. Ask your builder for recommendations.

Keeping in mind you are in a foreign country, be savvy and don’t assume anything… and you can build your beautiful dream home in a tropical paradise.