Rogue traders, lost deposits and disputes over unfinished home improvements could be a thing of the past with the launch of Bondpay – a nationwide scheme to protect consumers when undertaking building works.
Since its launch Bondpay has been awarded the status of being a TrustMark ‘Associate Member’.
The new payment scheme uses a system, registered with the FSA (http://www.fsa.gov.uk/), that gives peace of mind and certainty to both homeowners and builders alike, eliminating financial risk in the transaction and giving protection before, during and after the work is completed. The scheme is completely free to the homeowner and provides added protection by way of a 12-month ‘Bondpay warranty’ supplementing those provided by the contractor.
Homeowner and contractor both register with Bondpay describing the work to be done and the agreed price for the job. The homeowner then securely lodges the money for the work up front; giving the contractor the confidence and certainty he will be paid the full amount on completion.
The money is held at HSBC in a special client account where both the homeowner and the contractor can see it but not touch it. Only when the work is completed to the satisfaction of the homeowner, is payment authorised to the contractor. On the off chance that there is a dispute with the builder, Bondpay will step in and mediate with both parties to avoid the expense and worry of legal battles. The scheme also protects the homeowner should the builder cease to trade or refuse to come back.
It’s felt that Bondpay is what the industry needs – “a bulletproof and secure way to pay for home improvements without any risk”. The building industry welcomes Bondpay, allowing them to buy materials, allocate resource and complete the job with the knowledge and certainty that they will get paid 100% (uncommon in today’s building industry).
http://www.bondpay.co.uk
Story from TRUSTMARK e-newsletter ISSUE 23 – 2011.
