A contractor told someone he'd take a year to finish a project. Two years later, the machinery is still on site. TradeSafe could have saved this situation if the parties had completed a contract specifying the payment schedule. The contractor will not receive his final payment unless the job is complete. Another messy part of Construction for both the contractor and the client is often the final account. The contractor moves off site and the client takes possession.
Unfortunately this is when final project payments and finishing touches can start to go wrong. The contractor's bargaining chip (possession) has been taken away; and the client can struggle to get the contractor back to complete the last items.
Both the client and contractor can benefit from TradeSafe's escrow platform. All final contract documents and snag lists are agreed before leaving site, up-loaded onto the TradeSafe platform and the 'Final Account' funds loaded. Once the contractor has completed the snag list and the client is happy, we release the funds. if not we can facilitate arbitration on the matter!
Full construction projects can also be facilitated on the platform as either a single trade for small jobs or multiple trades for monthly or fortnightly contract payment agreements. We suggest you set milestones which can be set up as separate individual trades on TradeSafe. This will allow for enhanced protection and efficient cash flow planning.
The most difficult part of any construction project, of any size, is when it comes to an end. The contractor moves on to his next project and the client takes possession of the job. It is at this time that problems and faults are detected and final project payments start to go wrong. Both client and contractor can benefit from TradeSafe's escrow platform. Here, find out how.
Thinking about building a new house, renovating an existing home, adding on or simply repainting one? Let TradeSafe protect you from unscrupulous contractors.
In this article from Eversheds, Peter Mills outlines how conflict in the construction industry seems endemic, with the only winners being the litigation attorneys, advocates, claims consultants and expert witnesses. Savvy contractors and clients who use the TradeSafe escrow system, on the other hand, will find disputes and conflicts of this nature adequately facilitated by us, ensuring that fair trade is concluded between them.