At Workana, we use the Escrow payment system to ensure that both the client and the professional can be assured that the projects will be carried out as agreed.
Only for Fixed Price Projects, payment is guaranteed by this system.
Projects hourly pay, direct payments and recurring payments do not work by following this system.
How is the escrow process?
- The client ( buyer) accepted the bid of professional and make payment of the entire project to be realized. Workana at this time is the withholding agent;
- Workana receives the guarantee payment and keeps it in its possession until the requirements set out in the project are met.
- Once the conditions established between the client and the professional have been met, Workana delivers the money to the professional ( seller) .
When entering into a contract / project, the client and the professional define each other's obligations, the scope of the project and the value associated with it.
During the execution of the project, the amount agreed between the client and the professional is deposited in guarantee, ideally it must remain linked to the project until its conclusion.
However, the parties may stipulate that the amount deposited in guarantee be partially released, according to the evolution of the project and agreement between the parties.
Workana will be aware of the entire process, closely monitoring to, if necessary, act as an arbitrator in an eventual arbitration, if the client and the professional do not reach an agreement. At this point, only the communications maintained within the Workana platform can be used as evidence during the arbitration resolution process.
If it is found that the project was carried out by the professional, in accordance with the specifications and conditions stipulated at the beginning, Workana will release the payment to the professional.
What benefits does this system bring to clients and professionals?
Professionals are guaranteed that they will receive payment for the provision of services, provided they have fulfilled their part of the contract / project.
Clients have the peace of mind that, if the work is not carried out as agreed and within the term established between the parties, the payment will not be released to the professional.
The escrow system allows Workana to provide both parties with a neutral and reliable virtual work environment based on the conditions and agreements established between the client and the professional.
It is important that, if funds are released before the end of the project, this is done against delivery of concrete progress. Why? The funds released under these conditions are not covered by the guarantee and may not be returned or reimbursed. That's why it's important that there are concrete advances in order to release payments.
Likewise, both the client and the professional can monitor payments and execute them once there is agreement on the result obtained.
What happens if there is no agreement on the fulfillment of the project?
If there is no agreement on the fulfillment of the project, the client can initiate the process mediation to cancel the project.
If, in the case of mediation, the parties do not reach an agreement on how to terminate the project, both the client and the professional can request arbitration. For Workana, through the options in the project, in this procedure we act as an arbitrator and decide how the project will be terminated.