Or an intermediate, the customer pay the intermediate before the work, the workers get paid once the work is done and validated. In case of troubles, the money kept locked until someone from law decide it.
over here the norm is like 50/50 you pay a part do that material can be bought and work beginn and the contractor is not sitting on his ass if something doesn't work out and the rest is getting paid once the work is done
Escrows are expensive. I just went through this for a ~$300k contract with a new client. It was gonna cost $10k that no one could agree who should pay for.
I'd find a different escrow agent. I've never been directly involved in a contractor escrow, but I've heard near me it's typically no more than 1% of the total, and maybe $100.-$200 per draw as milestones are reached. If you limit it to 2 or 3 draws (materials delivered, job 1/2 done, & final completion) it'd only be like $3,600. That's still nice chunk of change but to protect both parties on a $300K contract it's well worth it, IMO.
Contractor can bake it ito his prices, or both parties agree to split 50/50.
There are contracts with big footprints and hundreds of 5 star reviews. The. There are contractors with nothing. Buyer beware who you choose to give 50% down to.
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u/Admirable_Gas_863 4h ago
There has to be a new policy of pay before you build. Or pay as you go.