At Workana, we use an Escrow Payment System to protect both parties throughout the project. The client makes the payment, and the funds are securely held until the agreed-upon conditions are met.
This way, the professional can be confident that the funds are available, while the client has a mechanism to manage the payment according to the agreed terms.
IMPORTANT: The Escrow Payment System applies only to Fixed-Price Projects, where the payment is secured through this system.
Hourly Projects, direct payments, and recurring payments are not covered by this system.
How Does the Escrow Payment System Work?
- The client accepts the professional’s proposal and deposits the agreed amount into Workana, which acts as an intermediary.
- Workana holds the funds until the professional submits a delivery.
- Once the client reviews and approves the work, they release the payment to the professional.
When entering into a contract or project, the client and professional should agree on each party’s responsibilities, the project timeline, scope, and corresponding fee.
For the engagement to be officially confirmed on the project, the client must deposit the full agreed amount into escrow. Ideally, these funds should remain linked to the project until it is completed. However, the parties may agree to release part of the funds in stages, based on the project’s progress and their mutual agreement.
Workana will monitor the process. If the client and professional encounter an issue and cannot reach an agreement, Workana may step in as an intermediary during the arbitration process. In these cases, only communications exchanged through the Workana platform may be used as evidence during the resolution process.
If it is confirmed that the project was completed according to the specifications and conditions established at the beginning, Workana will release the corresponding percentage or payment to the professional.
What Are the Benefits of the Escrow Payment System for Clients and Professionals?
- Professionals have the assurance of receiving payment for the services provided, as long as they have fulfilled the conditions agreed upon in the contract or project.
- Clients have the peace of mind that if the work is not completed as agreed and within the timeframe established by both parties, the payment will not be released to the professional.
IMPORTANT:
The client should keep the payment in escrow throughout the project.
If the client decides to release part of the payment before the project is completed, they should do so only when there is concrete progress that justifies the release.
Any amount released to the professional will be deducted from the funds held in escrow at Workana. Once released, these funds are no longer covered by Workana’s escrow protection and cannot be returned or refunded.
For this reason, we recommend not making payments outside Workana and releasing funds only in accordance with the concrete progress of the project.
The Escrow Payment System allows Workana to provide both parties with a neutral and trusted virtual work environment based on the terms and agreements established between the client and professional.
In addition, both the client and professional can track payments and manage them according to the agreed terms once they are satisfied with the outcome of the work.
What Happens If the Client and Professional Cannot Reach an Agreement on the Project?
If the client and professional cannot reach an agreement regarding the project, the client can start a mediation process to find a solution and, if applicable, request the project to be canceled.
If the parties cannot reach an agreement during mediation on how to conclude the project, either the client or the professional can request arbitration through the options available in the project.
In this process, Workana acts as the arbitrator and determines how the engagement will be concluded.
We hope this information has helped you better understand how the Escrow Payment System works and how it can help you work with greater peace of mind and security on Workana. 😊