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10 Mistakes to Avoid When Hiring Construction in Portugal

Updated: June 25, 2024
By: Frederik Pohl

Building a home in Portugal can be an exciting journey, offering you a chance to put your stamp on every aspect of your dream house. However, this process can also be riddled with potential pitfalls, especially when it comes to choosing the right construction company. To help you navigate this critical phase, here are the ten biggest mistakes you should avoid when hiring construction companies in Portugal.

Frederik Pohl
Frederik Pohl, CEO
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1. Neglecting to Research the Company

Doing comprehensive research on potential construction companies is key. Look for companies with strong experience and positive references. Check their operating licenses, proof of insurance, and adherence to safety procedures. Overlooking this step could result in hiring a company with a poor track record.

2. Ignoring the Company’s Financial Position

Even if a construction company has an excellent reputation, its financial stability is crucial. If a company is in a poor financial position, it might struggle to complete the project on time or may even go out of business before completion.

3. Falling for the Lowest Bid

Cost is, of course, a significant factor, but don’t let it blind you. Remember, the lowest bid does not necessarily translate to the best value for money, especially considering the diverse building standards of property in Portugal.

4. Not Checking the Assigned Project Leader

The project leader or the civil engineer is critical for the success of your construction project. Check their qualifications and track record in managing similar projects.

5. Overlooking the Subcontractors

Often, construction companies hire subcontractors for different tasks. It’s essential to know who these subcontractors are and their respective qualifications and experience. Neglecting this could lead to low-quality work.

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6. Not Clarifying the Scope of Work

An ambiguous scope of work can lead to misunderstandings down the line. Ensure that your agreement clearly outlines what the construction company is responsible for, including deadlines, budget, and quality of work.

7. Forgetting to Get a Completion Guarantee

A completion guarantee is crucial. This ensures the construction company’s responsibility for specific tasks for up to 5 years. Neglecting this may leave you unprotected should any issues arise post-construction.

8. Neglecting Regular Site Visits

Regular site visits are key to monitoring the progress of your project. Even with a reputable builder and architect, you should still schedule these visits. Hiring an independent building inspector or surveyor can also provide an unbiased report on the construction work.

9. Ignoring Legal Matters

Ensure that the company follows all local construction laws, and your property meets all legal requirements, which can usually be found in the Municipal Master Plans (PDM), Urbanization Plans (PU), and Detailed Plans (PP). Failing to do so might risk having your project suspended or even blocked.

10. Neglecting to Establish Clear Communication

Building a property in Portugal is a complex project that needs clear and constant communication between you and your construction company. Ensure that you have established a solid communication plan with your builder. Lack of communication can lead to mistakes, delays, and cost overruns.

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Construction & Renovation

Construction of a new house or renovation of an existing one? This can be a big decision when you’re buying in Portugal, since everything’s

Building your dream house in Portugal should be a joyous occasion, not a series of hurdles. By avoiding these common mistakes when hiring a construction company, you’ll be better equipped to make your dream a reality!

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