An ECS construction escrow account may be used to help to mitigate the risk of employer and / or contractor insolvency during construction projects.
The construction escrow account will effectively ring-fence an element of an employer’s money in a place where the contractor can see and use the money as security for interim payments. All too often we have heard of contractors being put out of business, perhaps due to the developer going into liquidation. Construction escrows can help to mitigate that risk.
Normally, in the event of insolvency, property that is held in trust is not included in the assets which may be distributed to the creditors.
Contractors Working Abroad
Escrow accounts may be used where contracts involve work abroad and / or non-UK employers.
Clearly construction projects will have a wide variety of scale and size, but regardless of this the problems of delays, costs spiralling out of control and time-scales being constantly extended are similar. While not all construction problems can be resolved by a construction escrow contract on its own, it can go a long way towards imposing strict payment controls and alleviating trust issues.
Escrow Custodian Services are able to hold funds and make disbursement at the various agreed stages providing that the agreed criteria are met.
Home Improvement / Construction Escrows
Escrow accounts may be used within the home improvement industries.
Many of us have heard tales of unscrupulous builders who take substantial deposits and payments up front for say, conservatories that appear to be not fit for purpose, or perhaps extensions that are not compliant with planning regulations – but the inverse is that there are probably many unscrupulous buyers who will make unreasonable demands in order to delay making payment.
The construction escrows from Escrow Custodian Services can help to protect both buyer and seller from some unnecessary financial risk.
Depending upon the scale and size of the home improvement contract, the contract can be constructed in order to offer draw-down schedule payments at each agreed phase and subject to completion as per agreement.
As an escrow custodian, ECS are able to hold funds and make disbursements as agreed, without any constraint upon the period that we may hold these funds.
Does this offer protection to the contractor?
Our construction escrows act to protect both parties, with payment being held by a neutral and independent third party.
Offering customers escrow accounts may be regarded by many as a positive offering – creating higher levels of trust to all concerned.
Areas we may cover include:
To learn more or to discuss a specific application (without obligation) call 0207 856 0129 and speak to a member of the Escrow Custodian Services team or email email@example.com