An Walker Insurance & Finance Services 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.
Construction Projects
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.
Walker Insurance & Finance 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 Walker Insurance & Finance 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, Walker Insurance & Finance Services are able to hold funds and make
disbursements as agreed, without any constraint upon the period that we may hold these
funds.
Enhanced Reputation
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:
- Home extensions
- Drive construction
- Loft conversions
- Sun rooms and conservatories
- Double glazing projects
- Kitchen / bathroom / wet room installations
- Roofing and thatching
- Barn conversions
- Solar projects
- Swimming pool builds
- Stable conversions