Home ConstructionPresident, Rocky Point Home Builders
Building your dream home in Puerto Peñasco is not a difficult process and there has never been a better time to start construction, given the strength of the dollar and the competitive lot prices. But, if you are considering building a home in the near future, make sure to protect your money by choosing a company who abides by Mexican Federal Labor Laws, has a good reputation in the community, who uses American Construction Contracts and American Escrow accounts.
Labor Practices
When deciding to build a home in Rocky Point, it is very important that you choose a company that follows the Mexican Federal Labor Laws. Mexico is highly protective of worker’s rights and medical wellness and it’s the hiring company’s responsibility to ensure those rights are respected. A company that follows labor laws will pay into the Federal medical insurance system for their workers, it’s Mexico’s version of social security and if a worker gets injured on the job the medical bills are paid. Think of it as workers compensation insurance in the States.
If you hire a company that does not follow the Federal Labor Laws you could be fined, potentially have your project shut down and will be responsible to pay any medical bills for any injuries incurred by a worker on your job-site. An easy way to ensure the company follows labor law is to ask for the company’s Cédula de Determinación, which is proof that they make payments into the social security system on behalf of their workers. A Cédula de Determinación is issued each month so make sure you are looking at the current month’s copy and hold the company accountable.
Building a home in Rocky Point Mexico is a big decision that makes most Americans nervous. You need to choose a company you can trust to not steal materials, cut any corners and stay on time with the schedule. Make sure the company you choose has a presence and notoriety in the community. Ask for a list of references that you can call to investigate before you sign a contract. Also, make sure the company has an office presence in town that is staffed during the day. Finally look at their media presence ensuring they have a website, Facebook page and run ads in local newspapers for example. These things are all important indicators when choosing the right company.
In order to protect yourself during the process, you want to contract with a company that holds an American corporation in the United States. This is important because, if there is ever a disagreement or breach of contract, you would have the ability to take legal recourse in the States versus Mexico. Americans do not have the ability to take legal recourse in Mexico as easy as they could in their own county. So to eliminate the anxiety and allow you to sleep easier at night, only contract with an American corporation using American contracting.
Escrow Accounts
A typical home build is in the six-figure range and you want to protect that money by working with a company that utilizes 3rd party American escrow bank accounts that are responsible for the distribution of funds per your contract agreement to the construction company. The escrow agent is responsible for protecting the funds and serves as a neutral party to the agreement. The escrow agent will hold the funds in an interest bearing account and will only distribute funds according to your contract with the construction company. This protects you and ensures that your money will be there to complete your entire project.
About the author: Joseph Sanchez is president of Rocky Point Home Builders a design/build contractor specializing in custom home design, construction and renovations. He resides here in Puerto Peñasco with his wife and two children and is originally from Chicago. For more information email him at sales@rockypointhomebuilders.com