Article
Permits, Contracts, and Retention: Building in Baja
Building or remodeling in Baja Sur involves municipal permits, written contracts, and disciplined payment retention.
6/27/2026 · 4 min read
Construction in Baja California Sur is often handled informally, which is exactly where foreign owners run into trouble. A disciplined structure protects both quality and budget.
Permits and approvals
- **Municipal construction license** for new builds and significant remodels.
- **HOA / condominium approval** if applicable.
- **Environmental approvals** for projects near the federal maritime zone, mangroves, or protected areas.
- **Utility connections** (CFE for electricity, water authority for service).
The written contract should specify
- Scope, drawings, and material specifications.
- Schedule, including milestone dates.
- Payment schedule tied to milestones — not to time.
- Retention (retención) of 5–10% held until punch-list completion.
- Warranty period after substantial completion.
- Dispute resolution and applicable law.
Practical discipline
- Never pre-pay large lump sums.
- Photograph each milestone before releasing payment.
- Keep all change orders in writing and signed.
- Confirm the builder's tax registration (RFC) and insurance.
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