What is Escrow Payment or Deposits?
It is critical that service providers perform their duties for service contractors with absolute confidence that they will be paid when work is completed. Service contractors do not want to pay and not receive product or services paid for either.
So how does the Escrow work then?
Once the service contractor selects the winner based on the bid offer. The service contractor will be directed to allocate funds on Escrow account. This can be done by credit card, debit card, EFT or bank deposit. The payment does not go the service provider at this stage. But credits on account for the service contractor are reduced by the value that is now allocated to service provider.
The service provider now proceeds to collect documents, attend the site meeting and return the documents per request. Once that is done , the service provider will specify the service is delivered.
Once the service contractor receives tender document or confirmation that service provider attended the briefing. The service contractor will mark the job as completed. As this stage our affiliate members receive their reward .
Once the service contractor confirms the job is completed, they will be prompted to release funds to service provider and close the project. At this stage the service provider can now withdraw funds. Please not that a minimum R500 must be reached to withdraw funds on your account.
What if the service provider does not release funds?
The service contractor must allocate funds on Escrow immediately once the winner is selected
The service provider must not provide services unless funds are allocated on Escrow account .
Service contractor must release funds within 12 hours of confirming job as completed .
In the event the service contractor does not release funds within specified period.
The service provider must lodge dispute immediately.
If a response is not received from service contractor within 12 hours . Site Briefing will release funds to the service provider.