Tuesday, June 9, 2009

LORETO BAY Construction

The following are some comments on future construction of village homes and custom homes:

With the current suspension of LBC construction activity I have read with some interest and bemusement the posted discussion related to various entities possibly assuming or taking over the construction business from the LBC. My partners and I have spent the last 18 months establishing a Custom Home construction company in Loreto Bay called FCM Finton Contruction Mexico and currently have 5 custom homes under construction. We are on the verge of completing in 12 months our first home for Bill Thompson at AV 90. see:http://www.fintonconstructionmexico.blogspot.com/

Anyone who says that they can come in and takeover construction is dramatically underestimating the complexity, the legality, the risks, the warranties, the hidden kickbacks, the labor issues, etc. of doing construction in Mexico. Also, when I hear these comments, I am concerned by the naivete of people who have not actually run a construction company and who have grossly underestimated the operational costs and the demands of locating on the ground in Loreto properly trained construction managers, on site construction supervisors, procurement teams, and accounting professionals to properly manage a construction company. Not to mention the storage requirements, equipment, and employee housing. Unfortunately, in the history of the LBC development, this has never been successfuly accomplished even with large corporate construction management companies like Beck brought in to try to get things running properly. There is no one currently involved with the LBC, or consulting to homeowners, who has the expertise or financial and human capital to establish a potentially viable construction company to finish village homes in FN or AV. Also, this notion that some entity will spring forth from the LBC to takeover is ludicrous. Why in the world would anybody believe that now is the time that some magical company will form (startup company?..do we need more of that?) and save the day. I recommend that if you have an unfinished home, that you take a deep breath and stay patient. Do not entertain opportunistic startups or well intentioned people that will undoubtably appear to solve your problems but have never actually successfully done it before! We have negotiated with LBC on many construction "takeovers" and they have been very messy complicated deals that require extensive construction forensics and analysis. And in some cases it is basically impossible to work out a takeover agreement that doesnt leave the owner liable for expenses that far excede their original construction contract amount.I am sorry to rain on certain parades but I cannot standby while these ideas are being discussed and entertained. We know what it takes to run a viable construction company in Loreto Bay and wanted to share with everybody a little taste of the reality of running construction in Loreto Bay. I will be posting comments on possible solutions as they come up...and hopefully can be much more positive. I think the homeowners need to really band together as i see is starting to happen and take control of the future of this development.
-Robin Donaldson AIA


  1. Interesting points, but am I missing where this writer is identified? This post is written in the first person.

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