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Using escrow to secure construction transactions

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Posted by: from Concord
9/17/2012 at 4:05:51 PM

Hi all contractors out there,

I just wanted to ask some questions:

a) How many contractors considered using escrow to secure payment for a project?

b) What is the average rate of customers giving problems to contractors with payments at the end of the project?

c) How do contractors go about accounts in default?

d) How many consumers know about holdbacks under Construction Lien Act?

e) What is a reasonable rate a contractor would agree to pay for escrow services (considering all collection costs if there was no escrow)?

Thanks.

REPLIES (3)
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Date/Time9/17/2012 at 9:59:37 PM

Serge,

I would not even consider taking on a project if there is talk of escrow, trade product in lieu of, or any situation that is not clearly defined.

My basic terms are devided into thirds. The first if for materials, second after work begins and the third upon completion. If a lengthy project there may be additional payments as the work progresses. Simply, ... put into a contract that protect both the customer and the contractor. I NEVER play games.

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Syed Painting & Handyman Services in Brampton
Date/Time9/17/2012 at 11:57:02 PM

Hi,

I would say if there is a written contract between the home owner and contractor with all terms and condition then there shouldnt be any problem. But there are people who can never be satisfied with anything, these kind of people give trouble when making payment at the end.

I painted a house at the end they lady had a flashlight and magnify glass in her hands and started looking in corners with flashlight and magnify glass. These kind of customers will never satisfy. Some people want the contractors to do other things that they never talked about in begining. To me every 15th customer will make trouble but I alway wright the contract that's why they have to pay.

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Date/Time9/18/2012 at 11:23:49 AM

Excellent idea, i posted something very similiar.

Good luck you have my particpation

cheers

joe

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