Do builders agree to an escrow account arrangement

Hi Sanjay Escrow is a great idea as it protects you and gives you some leverage if the job isn’t being done to your satisfaction,it would appear that many builders trade insolvently and rely on future payments to pay past debts and fund their show homes etc so they are unlikely to think escrow was a good idea. I don’t think its legal to with hold payments in case of defects,the Building Amendment act gives you a 12 month defect repair time and a 10 year warranty,enforcing this can be a problem. The builder is responsible for the contract price of the house and for the site itself,even to the point that you have to get their approval before you can enter the site(osh etc)It doesn’t become your property until fully paid for. The Building guide is a wealth of information. Good luck.

Hi Sanjay Can’t say there’s a hard and fast rule. I do hope builders would be open to it as it means their payments are safely locked away for them until they hit the milestone that would trigger payment. I’ll have to come back to you on the level of insurance – are you talking indemnity or Construction Works? PS – that’s for the kind words. 🙂

Hi Mark: I was exploring escrow for the whole build project. Will it work to have an escrow with BuildSafe and a HomeFirst guarantee? BuildSafe also has an insurance scheme with Stamford they call BuildSure. Apart from comparing the two insurance scheme offers (HomeFirst gets alternate builders to finish unfinished insured work), do you think a combination is a good idea? Wd value any advice on this, Mark – or anyone’s experience with these escrow and insurance purchase please. Many thanks

Hi Sanjay I haven’t had specific experience with them but I’m sure it would. I’m meeting with BuildSafe next week and can ask them if you like.

Hi Mark: I missed replying – sorry. Did you ask BuildSafe anyway? Sanjay