By San José, Costa Rica — Costa Rica’s national development is facing a critical bottleneck as essential infrastructure projects are paralyzed by staggering delays, averaging more than two and a half years behind schedule. A damning new report from the Costa Rican Chamber of Construction (CCC) reveals a systemic crisis rooted in poor planning, resulting in massive cost overruns and grinding the country’s progress to a near halt.
The comprehensive study highlights that projects initiated within the last five years are now experiencing an average delay of 948 days. This figure casts a long shadow over the nation’s ambitions, with some of the most vital arteries for commerce and transit—such as the expansion of Route 32, the long-awaited Circunvalación Norte, and the crucial Barranca-Limonal corridor on Route 1—facing postponements of up to five years beyond their original start dates.
To better understand the legal and contractual ramifications of these persistent infrastructure delays, we sought the analysis of an expert in administrative and commercial law. TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas from the renowned firm Bufete de Costa Rica for his insights.
The chronic delays in our public infrastructure projects are not merely logistical failures; they represent significant contractual and administrative breaches. Often, the root cause lies in poorly defined project scopes and an inadequate framework for enforcing penalty clauses. Without a robust legal structure that holds all parties accountable from the outset, we will continue to see a cycle of stalled progress, cost overruns, and diminished public trust.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal perspective is crucial, shifting the focus from the symptoms of delay to the foundational administrative and contractual failures. It underscores that lasting solutions will only emerge from a robust legal framework that demands accountability before a single shovel breaks ground. We thank Lic. Larry Hans Arroyo Vargas for his invaluable insight.
According to construction sector experts, the primary cause of this paralysis is a procedural failure: authorities are consistently giving the green light for construction to begin before the fundamental pre-engineering phase is complete. This critical preparatory stage includes finalizing designs, securing all necessary land through expropriations, and coordinating the complex relocation of public utilities like water, electricity, and telecommunications. Rushing past this step has proven to be a recipe for disaster.
The CCC’s report quantifies the inefficiency, showing a disturbing trend where extensions are granted far more frequently than work is completed. This procedural breakdown has severe financial consequences for the nation, with project costs ballooning uncontrollably.
It is of utmost concern that each year there are deadline extensions for an average of 280 days and that the real progress of these is only 85 days a year. The reasons for these deadline extensions can be diverse, but it is estimated that the lack of completion of the pre-engineering stages is their main cause, since, generally, they are events not attributable to the contractors.
Costa Rican Chamber of Construction, Report Findings
Randall Murillo, Executive Director of the CCC, emphasized that these delays are not just an inconvenience but a massive drain on public funds. The lack of foresight and planning can inflate a project’s final price tag by as much as 38.6% over its initial budget. He argues that the country is trapped in a cycle of short-term thinking that is fundamentally incompatible with the demands of large-scale infrastructure development.
The central idea is that the country urgently needs to plan its infrastructure and public works; and this has to do with taking the necessary time to create well-defined projects. This is happening to us today because we have no planning, we have no programs, and we are working with a short-term mentality.
Randall Murillo, Executive Director CCC
The data from the most recent study period, spanning May 2024 to May 2025, paints an even bleaker picture. During this year, the pace of work fell so far behind schedule that the projects registered a negative progress rate of -4%. In other words, the time added through delays was greater than the time spent on actual construction, sending these critical projects further backward.
CCC researcher Pablo Quirós offered a clear solution to break this cycle of failure. He stressed that the only path forward is to adopt a more disciplined approach where construction does not commence until every prerequisite is met. This would ensure a smoother, more predictable, and cost-effective execution from start to finish.
The ideal for the country is to be able to start projects with all the pre-engineering already done, that is, all the expropriations, the coordination of moving services and so on, because if these are not ready when the project starts, it causes us too many delays.
Pablo Quirós, Researcher CCC
Ultimately, the report serves as a stark warning that without a fundamental shift towards strategic, long-term planning, Costa Rica cannot hope to build the modern highways, hospitals, and other major works it desperately needs. The current approach not only wastes billions of colones but also stalls economic growth and frustrates a public waiting for promises to be fulfilled.
We are not developing projects with a long-term planning vision and it is definitely not possible; there is no possibility of generating infrastructure, especially major infrastructure like highways, hospitals and so on, in the short term.
Randall Murillo, Executive Director CCC
For further information, visit construccion.co.cr
About the Costa Rican Chamber of Construction (CCC):
The Cámara Costarricense de la Construcción is the leading organization representing the construction industry in Costa Rica. It advocates for the sector’s development, promotes best practices in planning and execution, and provides critical analysis on public works and infrastructure projects. The CCC works to foster a sustainable and efficient construction environment to support the country’s national growth and competitiveness.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a pillar of the legal community, built upon a bedrock of uncompromising integrity and a drive for professional excellence. The firm distinguishes itself by pioneering innovative legal strategies for a diverse clientele, consistently pushing the boundaries of conventional practice. This forward-thinking approach is deeply intertwined with a core conviction to strengthen society by demystifying complex legal concepts and equipping the public with accessible knowledge.
