5. Poor contracts which do not correctly protect your interest
When you build a luxury villa there are lots of different people you need to help and each of these will have a contract. It can be hard to understand the clauses and many people sign them without really grasping what protection they need and how important these contracts are in ensuring a successful build. Here are some things to think about –
- What guarantees do you have for work completed. Has the constructor or architect contracted subcontractors who do not fall under the guarantee? Ensure you have the necessary guarantees in place before commencement of works.
- Are you making changes to the scope of the project which are not covered in the builder’s or architect’s contract? If so, you could pay over the odds and not expect those additional costs.
- Suppliers of materials included or not included in the constructor’s or architect’s contract – make sure you understand the “memoria de calidades” and its impact on your project.
You can find out more about the importance of a good contract during development on our blog, or ask us how we can help make sure you are properly protected.
6. Not having the correct licenses in place for your building
Unfortunately, we can see the remnants of developments and unfinished villas across the Costa del Sol which were started without the correct licenses in place and were never able to finish. Others were finished and may be lived in, but do not actually have the licenses they need and therefore no buyer will be given a mortgage on the properties. Before you start, ensure that the land has the correct licenses for the type of project you have planned? You also need to check whether it is protected in any way or limited by any legal impediments before the project gets underway. Read our lowdown on gaining building licences on our blog, or contact us to find out how we can help you get the licenses you need as quickly and efficiently as possible.
7. Lack of utilities and services
Make sure you have the services in place, or a guarantee of installations of water, sewage etc for after the villa is built. Also ensure that the project already has sufficient utilities supplied to cater adequately to the eventual needs. Think long term to ensure it will work for you for many, many years to come.
8. Missing out the snagging process and having to live with problems or pay extra
Snagging is a vital step in the build of a luxury villa. Make sure your “finished product” has efficient snagging performed by an expert, including three rounds of reviews. Items found to be deficient need to be made good or the guarantees are called in to cover the costs. It can be tempting to skip this step and just move in, but statistics prove that 95% of new properties have problems with quality issues. Detailed and regular supervision of works on-site and a thorough 3-phase snagging process prior to delivery ensures quality standards are always met and avoids additional costs, claims, disputes and delays.
9. Not contracting independent project management until problems arise
Many clients choose to save money by using the project management services of their builders or architects, but this is usually a false economy. In fact, bringing in a project manager from day 1 can save you a lot of money and stress. You will benefit from a high-level strategy being implemented right from the beginning, this can save you money on the so called “soft costs” such as fees (for licences and professional due diligence) but also on capital costs and interest. Your project manager will also make sure your contracts include all obligations, deliverables and processes, so you know you’re covered with firm and factual deliverables. Last but not least, they will always keep you informed and make sure everyone working on the project is working to your brief and stays on track.