FAQ

What kind of construction contract and documentation should I use?

Get yourself a good contractor, experienced in working with international companies, and you will have no problem in drafting a good contract and supporting it with clear, well-structured documentation. Most large Mexican law firms, who generally represent foreign companies, are thoroughly familiar with this work. Generally speaking, AIA forms do not function well in México, as they are designed for an entirely different set of laws, procedures and commercial practices.

Remember, Spanish is the official language in México and all official documents have to be in Spanish. A good contractor will provide you with bilingual documentation that will make your work easy and manageable.

Can I expect on-time delivery of my completed building?

México is some times portrayed as the land of “mañana”, where an Indian is asleep under a gigantic sombrero beside a huge cactus and nothing ever happens on time. Nothing is farther from the truth. You will find that Mexicans in general are devoted, conscientious, hard working people.

Do your homework. Choose your contractor carefully. Check references, talk to previous customers. And just as anywhere else, a good contractor will deliver your work on time, a bad one, who knows?

Should I worry about environmental issues?

You bet! Mexicans are getting as environment conscious as anyone else and their environmental protection agencies are becoming very active in enforcement.

Plan to do your construction work in such a manner as to comply with United States rules and regulations and you will certainly be out of trouble. In case of doubt, get yourself a good local environmental consultant to keep you from doing expensive mistakes. Your construction contractor should be able to assist you in finding the right consultant.

How about fire protection?

Some municipal governments in México require street hydrants as part of building construction. There is no ordinance requiring automatic fire sprinklers.

The basic criteria to decide whether or not to sprinkler your plant are not all that different from what you would use in the United States. In some cases where the Mexican facility is either supplying plants back in the United States or feeding a separate important market segment, business interruption insurance becomes very significant, and sprinklers will really help reduce premiums.

Two important issues to consider: The sprinkler system at your Mexican plant should be designed and built in compliance with National Fire Protection Association standards, so that it will be accepted as adequate by your U.S. underwriter for premium reductions. Your construction contractor should have previous experience in doing this kind of work with American underwriters, so that he can deliver you not just a workable system, but also a certified, accepted system.

And second, said underwriters generally do not accept Mexican city water systems as adequate sources of water for your sprinkler installation. This means that you have to build an independent reservoir as part of your own facility and consequently, your sprinkler system in México will probably be more expensive than in the United States.