There are numerous pitfalls to avoid as a foreigner wanting to build a house in the Philippines. Among them are (i) obtaining the services of the wrong contractor, (ii) thinking that since the Philippines is an underdeveloped country there is no limit as to how cheaply you can get it built, and (iii) a lack of understanding that common building materials used in the Philippines are not up to the standards you would expect in a developed country.
The primary problem
All the problems associated with a foreigner building a house in the Philippines flow from a primary problem - rushing out and obtaining the "services" of a contractor or architect who happens to be a friend or a relative of their Filipina girlfriend or spouse. This is an immediate recipe for a disaster!
You run the risk of working with a Philippines contractor who will disappear when the house is incomplete, or the architect will make a ridiculous design on a ridiculous foundation, or still further, the house may look nice when built but immediately thereafter it begins to crack or leak.
These Philippines family friends/relative architects and contractors, who always hold themselves out to be "experts", usually have no office and are unlicensed. Yet, because they offer what seem to be such low prices, foreigners rush in with total trust and launch into construction without even a written contract. Note that many local Filipinos consider it a great source of pride to "fleece" a foreigner.
Specific Tips for a Foreigner Building a House in the Philippines
1. Hire an Philippines licensed architect - you would never think of building a house in the USA without an architect, so by all means in a the Philippines, where you do not speak Tagalog, llocano or Visayan languages, nor fully understand the customs and work habits of Filipino construction people, start things right by hiring a professional, experienced and licensed architect. The highest impact on cost savings is in the planning phase, not in the bidding and construction phase.
2. Get a Philippines contract for the construction - be sure all agreements are in writing, and that you are dealing with a professional, experienced and licensed Philippines contractor.
3. You need to be sure the basics of the contract clearly set forth (i) a detailed description of the work to be done, (ii) specifics as to the materials to be used (as to quality, quantity, weight, color, brand name, etc), (iii) starting and completion dates, (iv) how and when payments will be made, (iv) warranties and guarantees of workmanship, and (v) methods of debris and refuse removal when the work is done.
4. Philippines building materials - ทาวน์โฮมมือสอง this is one of the most critical aspects of a home building project one needs to understand. Probably 98% of all houses in the Philippines are made with hollow blocks. The problem is every Filipino seems to have a backyard family business making hollow blocks. There is no standardization as to the minimum amount of cement to be combined with the gravel and sand to make a strong block. I have encountered blocks which were so brittle they literally broke in my hands.
Be sure you are able to verify the quality of the work. If you have followed the above tip of only working with a professional, licensed Philippines architect and contractor, this will not be a problem
In lieu of hollow blocks, consider use of (i) insulated light weight concrete panels or (ii) insulated concrete forms. These are newer forms of constructing concrete walls in the Philippines, and although they are more expensive, they are roughly ten times stronger and significantly reduce the need for full time air conditioning.
The problem with hollow block walls in Philippines construction are they offer no sound insulation and they absorb and store heat of the day. During the evening, they give that heat back to you. Homes with hollow block are therefore cool in the morning, but by evening time they literally become like an oven, and you are the meal being baked! Further, due to their poor insulation, you will have very high electricity bills. Humidity is high in the Philippines, so air movement is critical.
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