Baja Property Insider · Building · Stage Worksheet

Preparing a construction contract

Last reviewed September 2026 · bajapropertyinsider.com

A construction contract is where risk is assigned. A good one is specific about scope, money, time and what happens when something goes wrong.

What usually happens next

1. 01 — Attach the drawings and specification to the contract so 'scope' means something.

   A contract that says 'build the house' defers every question to the moment it becomes an argument. With the drawings and specification attached and referenced, the contract points at a document whenever 'is that included?' comes up. If the scope is not attached, it is not agreed.

2. 02 — Tie payments to completed, inspected stages rather than to the calendar.

   Stage payments — foundation complete, structure complete, and so on — keep money behind work. Define each stage, how completion is verified, and the percentage it releases. A modest retention held until the punch list is finished is standard leverage and worth insisting on.

3. 03 — Write in how changes are priced and approved, in writing, before they are built.

   Changes are where budgets go to die. A change-order clause means every change gets a written price and schedule effect that you sign before the work happens. Without it, 'small changes' accumulate into a final account nobody can reconstruct.

4. 04 — Set out warranty, delay and termination terms.

   The contract should say what happens if the work is late, defective, or the relationship breaks down: warranty periods, delay consequences, and the steps each side must follow to end the contract. These clauses feel pessimistic when everyone is getting along — which is the only time they can be written fairly. This is attorney territory; have counsel draft or review it.

What to watch for

• Payment schedules that stay ahead of the work completed.
• No change-order procedure, which turns every change into a negotiation.
• Signing the Spanish version without an accurate translation — the Spanish text governs.

Papers and people

• Who is involved: Attorney · Builder · Architect · DRO
• Documents that show up: Construction contract · Drawings and specification · Payment schedule · Change-order form

Notes

Gerardo Sánchez Aramburu

Independent Attorney Partner

Some steps on this sheet are judgment calls, not paperwork. When one of them turns out to matter for your transaction, an independent Mexican attorney is the right next reader — someone answerable to you, not to the deal. Gerardo works directly with foreign buyers and owners in Baja California Sur, in private 30-minute consultations.

Book directly: bajapropertyinsider.com/legal-guidance

Sources and last reviewed

Last reviewed September 2026. Laws, rates, and municipal requirements change. Treat this page as a starting point and confirm anything you intend to rely on with your notario or an independent Mexican attorney.

• Article 27, Constitución Política de los Estados Unidos Mexicanos — Foreign nationals cannot hold direct title inside the restricted zone; the bank trust exists because of this article.
• Municipal planning and land-use offices, Baja California Sur — Land use (uso de suelo), construction licensing, and permit requirements differ by municipality.
• Ley del Notariado para el Estado de Baja California Sur — Defines what a notario must verify, certify, calculate, and file for a property transfer.

A finished checklist is a well-prepared file, not a verified transaction. Baja Property Insider — bajapropertyinsider.com