The purpose of the information set out here is to give you the detail of how we work and set expectations so you can feel confident about working with us and building your home in Spain. We explain here the protocol within the Spanish legal system, the responsibilities and how we protect your money. We believe that transparency is the way to build trust and confidence.
Index
Who’s Who in the Team
We Manage the Three Phases: Feasibility, Design, Construction
The Feasibility Phase
1. Meeting With Us in Our Office in Granada
2. Option 1 for land graded as “urban” – A Site Inspection and Oral Report
3. Option 2 for land graded as “rustic”: A Report on the Planning Situation
4. Option 3 Preliminary Designs and Cost Estimates
5. Option 4 – A Current Market Valuation on the Site and Estimated Value of the Finished Building
6. Important Notes on the Valuations
• The Design Phase
1. Outline Designs (anteprojecto)
2. Detailed and Final Designs (proyecto basico y de ejecucion)
• The Construction Phase
1. The Contract
2. Work on Site
3. Finishes and Licences
Keeping Your Money Safe: Who you pay and when
• Fees for the Design Phase
• Payments During the Construction Phase
• A Retention of 5%
• A Complete List of What’s Included / Excluded
Responsibilities, Guarantees, and Project Management
• Professional Ethics
• Communications
• Architectural and Project Management Responsibilities
• Planning Consent
• 10 Year Guarantee
• Independent Monitors
• Topographical and Geotechnical Report
• Health and Safety Plan
• Building Works Insurance
• Licence of First Occupation
Your Guarantee of Safety
Who’s Who in the Team
Eco Vida Homes is the trading name of “The Eco Design and Build Company S.L.” CIF B18957480. This is a limited company registered in Spain which is owned and run by John Wolfendale and Luis Llopis. All services are contracted with Eco Vida Homes who include the following people and companies in their team.
Arqur is a long standing practice of chartered architects owned and run by Luis Llopis. Arqur will be your architects and project managers. Luis Llopis will take personal charge of your project and you will have in depth personal contact with him.
Eco Vida and Arqur work out of the same office premises in the central business district of Granada and cover construction and renovation projects through Andalucia and Levante.
Rafael Leiva runs a construction company called DVS. He is a key member of our team. DVS are continuously active throughout Andalucia as they have the contract to build and maintain all the buildings in the Caja Rural portfolio.
Patricio Bautista, Ángel Carmona and Luis Ollero run a company called Abaco Ingenieros which specializes in heating, cooling and other engineering systems. They have a very wide experience in the design and coordination on site of all kinds of complex energy efficient systems in public and private buildings.
The Feasibility Phase
These services are aimed at people who have found a site and need assistance in making the decision to buy it.
If you already have a site and want to go straight to the Design Phase Option 1 – A Site Inspection and Oral Report is a necessary first step.
If you’d like us to help you find a site we can put you in touch with estate agents we trust in various regions of Andalucia and Levante.
We are always pleased to answer your questions by telephone, email.
Meeting with us in our offices in Granada.
We will be delighted to meet you if you’d like to come to our offices in Granada without charge or obligation. You can tell us about your plans and immediately find out how we can help you. Please call us to make an appointment.
Option 1 for land graded as “urban”: A Site Inspection and Oral Report.
Both Luis Llopis the architect and John Wolfendale, the chartered surveyor, Directors of Eco Vida, will inspect the land, and make initial enquiries with the local authorities to confirm the planning situation. We will then meet you to discuss your ideas and answer all your questions about what can be done on the site and any problems and issues. Our meeting could be on site and would last about 2 hours, or by telephone after our inspection.
Our fee in the case of land zoned as urban is 500 € plus travel expenses excluding VAT from Granada calculated at 0.50 € / km.
Option 2 for land graded as “rustic”: A Report on the Planning Situation
In the case of rustic land the planning situation is always more complex. First we need to understand what you want to achieve then typically we would make enquiries with all the authorities involved to establish how your proposals might be received and put our findings in a report to you.
We can give you a quotation for this work once we have identified the land and spoken to you about your project.
Option 3: Preliminary Designs and Cost Estimates
We will produce some basic drawings and a rough estimation of the cost of construction. These sketches will explore how the building might sit on the site, the size layout, and orientation. The fee you pay for this is a part advance towards the future fee for the formal Outline Planning Proposals (anteproyecto) should you decide to go ahead with that.
The fee varies according to the size of the proposed house as follows:
Size of House Fee (ex VAT)
Under 200 m2 1400 €
200-400 m2 2750 €
400-600 m2 4300 €
600- 800 m2 5300 €
800-1000 m2 6300 €
Over 600 m2 Call us for a quote
Option 3 can only be carried out if we have first carried out the site inspection and met with you (Option 1).
Option 4: A Current Market Valuation of the site and an Estimated Value of Finished Building
Campbell Ferguson of Survey Spain SL, Chartered Surveyors, regulated by RICS UK, (www.surveyspain.com), or another valuer of your choice, will carry out an independent valuation of the site and provide an opinion of the value of the finished building, so you can check you are not over-paying for the site.
You will be the direct client of Survey Spain S.L. and they will have a duty of care to you not Eco Vida. The valuations will be carried out in accordance with the RICS guidelines (http://www.rics.org/redbook) and be covered by professional indemnity insurance and are in writing. The information for these valuations will be provided to the valuer by John Wolfendale, MRICS, who is a UK qualified Chartered Surveyor.
This outline appraisal will enable you to judge the possible capital gain that will occur between purchase of the site and completion of the building, which provides a ‘Residual Value’ for the land.
For example:
Estimated Value of completed building: + 950,000 (before selling costs)
Less the estimated cost of construction and professional fees: -700,000 (including licences, finance costs, etc)
Equals the “residual value” of the site =250,000
You can compare this residual value of the site with the terms offered by the vendor and you may wish to use it in your negotiations although what you finally agree could be more or less than this figure.
We also research the market for sites in the area and take into account such comparable evidence as is available.
If the valuation can be carried out as a ‘Desktop’, based on the information provided without a site visit, the fee is 450 €
If a site visit is required, the valuation fee will be 650 € plus travel expenses as above.
Important Notes on the Valuations:
The estimated cost of construction and professional fees we use for Option 4 are approximations based on knowledge gained from earlier contracts. An actual cost of the construction project can be determined only after detailed designs have been carried out in close consultation with you, and your preferences taken fully into account. Many factors go into the final quotation such as the timing, the construction market in general, the quality of the finishes, gardens, and the geological character of the land.
The valuation of the completed building on Option 3 is carried out using the comparative method. That is to say it is a market valuation based on comparable properties that are available on the market.
The Design Phase
To initiate the Design Phase you must have passed through Option 1 of the feasibility studies (A Site Inspection and Oral Report)
The design phase has two parts to it: the Outline Designs (Anteproyecto) and the Detailed Designs. There are two parts to the detailed designs one which is used for obtaining planning consent (Proyecto Basico) and one which is used for constructing the building (Proyecto Ejecucion).
Our agreement is in writing which specifies the fee structure. Architects fees are discussed below.
Outline Designs (anteprojecto)
This is when the design concept is established, the building is located and orientated on the site, and the layout established. The process begins with a meeting with you to establish what you want from your home and how you will use it. If you haven’t opted into Option 2 of the feasibility studies (Preliminary Designs and Cost Estimates) then we cover that now.
We liaise with the planning authorities to make sure planning consent will be granted for what we propose. We will then present the plans drawings and maybe models to you to you get your feedback until we arrive at a design which satisfies you.
This is a comprehensive service which includes the preparation of basic 3D models of the building, a rough design of the swimming pool if there is to be one, and the design proposal for the garden landscaping.
Depending on the size and complexity of the project this could take between a month and a few weeks to carry out.
Fees are outlined below – Fees for the Design Phase
Detailed and Final Designs (Proyecto Basico and Ejecucion)
This second design stage fills out the design with a precise specification. This can take anything from a month to a few months depending on the size and complexity of the project.
One of the unique aspects of working with us is that we cost your project as we design it. We discuss the different options with you and how they affect cost, comfort, appearance, and energy efficient performance of the building. You end up with a fully costed specification which exactly matches your preferences and budget. This is very efficient. We get it right first time.
When we have finished and you have approved everything we have two important documents. The “basic project” (Projecto Basico) which contains all the finer details which will be used to obtain planning in the form of the building licence. And secondly the Proyecto de Ejecucion which is best called the Implementation Document. This contains all the information we need to construct your home such as details of the foundations, the structure and engineers’ calculations, and details of the materials, installations and finished. Both documents are approved by the regional Institute of Architects.
The Construction Phase
The Contract
The construction phase begins with the signing of a contract between us based on the fully costed specification we arrived at together during the design phase.
This is a fixed price contract so there is no risk of cost overrun.
We have agreed with you as we go along all the costs and these are specified in the contract.
We also declare our margin and all the professional fees so that you can check this is a competitive price.
You will pay a deposit into a separate bank account. (see Keeping Your Money Safe: who you pay and when).
Work on Site
The Eco Vida team, Arqur, DVS, Abaco and others, will then construct your building in accordance with your wishes which are laid out in the contract.
The construction period could be about half of what you would expect from a conventional contractor in Spain.
Finishes and Licences
When the building is completed and fitted out there is a period during which we make a careful inspection of the building checking over the finer details, walk round the inspectors who issue the licence of first occupation, get the services connected if appropriate, and make sure that everything is working properly before handing over the keys.
Keeping Your Money Safe: who you pay and when
For the Feasibility and Design phases you pay Eco Vida or Survey Spain in advance just as you might do with a conventional architect or firm of Chartered Surveyors. The costs of the Feasibility Studies are outlined in the text.
For the Construction phase you also pay Eco Vida and there is more on this below.
Fees for the Design Phase
Our charges are based on those recommended by the Institute of Architects which are presented in tables and are public knowledge. They vary according to the size of the project and the quality of design and finishes. You can assume they will be between 6% and 9% of the contract sum. The fees are specified in our contract at the beginning of the Design Phase.
For example in the case of a 350 m2 house in Almuñécar the fee rate according to the tables for a building with high quality finishes would probably be €55,000 (excluding VAT) which is an all inclusive fee (see the Complete List of What’s Included / Excluded). After our first meeting with you we would firm up on this having inspected the site and discussed with you the general quality of materials and fittings.
This sum is paid in phases (and in advance) as follows:
30% in advance of the Outline Designs (Anteprojecto) less what you may have paid for Option 2 Preliminary Designs and Cost Estimates
40% in advance of the Detailed Designs (Proyecto Basico y de Ejecucion)
30% in advance of the Construction Phase
Payments During the Construction Phase
The initial payment which you make to us to initiate the construction phase is governed by Law 57/1968 July 27th.
Under this Law, any developer who receives sums of money from the purchasers before the construction is started or whilst the construction is taking place, has to guarantee the repayment of these amounts plus the legal interest, through an insurance contract, or by way of a bank warranty.
That is exactly what we do. We open a special account with our bank into which you deposit the money and they will issue you a certificate of guarantee. You are completely protected. Whatever happens you either get your money or your building.
This mechanism is a very useful and simple way of giving you the confidence to make the first payments and of giving us the confidence to start work on site. We adhere to the letter of the law in every detail and invite you and your lawyers to check we do so. It’s important you understand this if you have heard of circumstances where banks have tried to evade their obligations by claiming some small detail of the procedure hasn’t been followed. Happily in these cases the courts are finding in favour of the consumer.
The first payment is normally 30% of the value of the contract. Subsequent payments are made against architect’s certificates which confirm the amount of work done. These are typically done monthly. Arqur, your architects, will certify that work has been completed up to a certain value, and you will pay that amount into the account.
In addition to this the bank will carry out its own independent assessment of the state of the works before releasing a stage payment to us.
If you have a construction mortgage then your financier will also be monitoring the project to confirm that the building is being constructed in accordance with the plans and specification agreed in the contract.
A Retention of 5%
5% of each of the architects certificateand the initial deposit is held back by you against any snags or defects which occur during the first year after the occupation licence has been granted and which will be rectified by us. The retention is made over to us after a final inspection one year after the granting of the licence of occupation.
A Complete List of Whats Included and Excluded
Here is a complete list of everything that you need divided into those items which are covered by the professional fees and construction costs you pay to us and those for which you need to budget separately:
Included in the professional fees and construction costs you pay to us:
• The entire cost of construction as specified in the contract and agreed beforehand
• Architects Design Fees and monitoring of the project during construction
• Project management and coordination of the project
• All work in managing the bureaucracy, obtaining permissions and licences.
• Quantity Surveyors fees in costing your project and different options to help you decide
• On site Health and safety coordinator during the construction period
• The Engineering and Structural Calculations
• Fees of the installations engineers (heating and cooling systems and such like)
• The Health and Safety Project and implementation
• Building Works Insurance Accident fire and theft
• All risks construction insurance
• Waste Management Project and Implementation
• Work on site during construction of the Quantity Surveyor (Arquitecto Técnico)
• 10 year guarantee and quality to control to obtain the insurance
Items you need to budget for in addition to what you pay us for:
• Cost of the land
• Your legal fees and notary fees
• Topographical Study
• Geotechnical Study
• Costs of the Colegio de Arquitectos approval
• Building license fee (Licencia de Obra)
• Independent Monitor if you’d like to appoint one
• License of first occupation (Licencia de Primer Ocupacion)
• Connection to the Utilities
• VAT
• Independent confirmation that contracts and legal paperwork are in order
Responsibilities, Building Guarantees, Licenses, and Project Management
Professional Ethics
It’s important to note that both the Spanish Institute of Architects and the Royal Institution of Chartered Surveyors hold their members to high standards of professional ethics and in this case you are looked after by John Wolfendale MRICS and Luis Llopis a Chartered Architect.
The law requires that certain professionals with specific responsibilities are involved in every building project in Spain. Some laws can vary between municipalities. We take responsibility for all handling all aspects of the bureaucratic processes, regulations and licences. This allows us to be efficient, minimise delays, and get the job finished quickly.
Communications
We understand the importance of communicating frequently with you and keeping you informed about what is happening. We will consult you regularly during the design process to get your feedback and approval for what we are doing. We will update you regularly with progress reports during the construction period.
Architectural and Project Management Responsibilities:
Your architect is Luis Llopis of Arqur which carries professional indemnity insurance. Arqur adheres to a strict code of conduct monitored by the professional body the College of Arquitects of Granada.
We will Project Manage the entire project coordinating all the professionals, builders, engineers and craftsmen that are involved.
The technical supervisory team (Dirección Facultativa) is the collective responsibility of the architect and technical architect (arquitecto tecnico) to make sure that every aspect of the construction adheres strictly to the original building design and complies with the building regulations. Arqur has additional professional indemnity insurance to cover them in this responsibility.
Planning Consent
We deal with all aspects of planning consent (licencia de obra) with the local authority and in the case of rustic land the regional authority too.
10 year guarantee(decenal insurance)
It is obligatory that all new buildings in Spain carry a 10 year guarantee against structural defects. This takes the form of an insurance policy lodged with an independent insurance firm on which you, or any future owner of the building, can rely. The insurance company monitors the structural work independently of Eco Vida. It’s paid for by us.
Independent Monitor of the Construction Works
Our bank will be monitoring the construction as the stage payments are released. If you are financed by a mortgage your bank will also be monitoring the construction as stage payments are released. If you wish to engage another independent consultant who is a qualified professional in this filed to advise you over any aspect of what we do then we are delighted to cooperate. In this case it would be paid for by you.
Topographical Report and Geotechnical Report
These are practical necessities which enable the design to be configured and the type and strength of the foundations established. They would normally be carried out prior to the outline designs (Anteproyecto). We handle all aspects of these even though you pay for them directly.
Health and Safety Project and Implementation
A report on health and safety is included in the Proyecto de Ejecucion which is submitted to the local authority for planning consent and the Institute of Architects for Aproval. We handle this all aspects of this.
Building Works Insurance and All Risks Insurance – civil responsibility
We organize and pay for insurance to cover accidents to workers, visitors to the site fire and theft.
Licence of First Occupation
This is granted by the local authority when the work has been completed and allows you to get connected to the water and electricity services. We handle all aspects of this including being present at their inspection to answer any queries they may have.
Your Guarantee of Safety
We can arrange, as an option, a certificate from an international firm of lawyers that you have good title to the land, that all the licenses, permissions and guarantees are in order and that everything has been done correctly to protect the value of your investment.
This certificate is completely independent of Eco Vida and the companies associated with Eco Vida. The lawyers with offices in all the major capitals of the world report directly to you. The property can be sold with the benefit of the certificate which is transferable to any owner of the property and backed up by significant professional indemnity insurance and an impeccable reputation for integrity.
You pay the lawyers directly for this service.
