Construction contract and payment schedule
Sign a written construction contract in Spanish, with an English copy, that sets the scope, plans, materials, price type (fixed or cost-plus), payment milestones, timeline, penalties, warranty, who registers workers with IMSS, and who handles permits.
Why it matters
Most building disputes start with verbal deals and large up-front payments.
Who helps
The builder and your attorney work out the contract with you. The DRO certifies progress.
What to do: Sign a written construction contract with milestones, penalties and a warranty.
Documents
- Contract with plans and specifications attached
- Builder's RFC and invoices (CFDI)
- Payment schedule tied to milestones
Costs Estimate
- Contingency: 10%–20% of the build budget (estimate).
- Attorney contract review: flat fee (estimate).
Estimates only. Get written quotes.
Common mistakes
- Paying ahead of the work actually done.
- No invoices, which raises your tax when you sell.
Say it in Spanish
- Los pagos se harán según el avance certificado por el DRO.
Payments will follow the progress certified by the DRO.
Confirm the details for your case with your notario or attorney.
Common questions
Why keep invoices (CFDI)?
They prove your costs and improvements, which lowers capital-gains tax when you sell.
Do I have to register construction workers?
Yes, construction must be registered with IMSS. Make sure your contract says who handles it.