You can trust that your money is safe with DG Assure Escrow.
With so many construction businesses going into liquidation, the issue of putting down a deposit with tradespeople has become a subject of concern for many consumers. We get it and we feel the same, which is why we choose to hold your deposit in an escrow service called DG Assure.
A recent Fair Go report has shed light on the challenges faced by individuals who make upfront payments, only to be left dissatisfied or abandoned by unscrupulous tradespeople. It’s scary we know. So let’s look at our position on deposits.
Understanding deposits
Deposits are payments made by consumers as a commitment to secure the services of a tradesperson. These deposits are intended to demonstrate good faith and cover potential costs incurred by the tradesperson in the event of cancellation or rescheduling of the project.
John Green, founder of the Building Disputes Tribunal, spoke to Fair Go about contractors being hung out to dry, when they set aside time to do a job and turn away other work only to be let down. “At the last moment, the client or homeowner will obtain a better, sharper quote and simply tell them that they’re not needed”.
Deposits are payments made by consumers as a commitment to secure the services of a tradesperson. These deposits are intended to demonstrate good faith and cover potential costs incurred by the tradesperson in the event of cancellation or rescheduling of the project.
John Green, founder of the Building Disputes Tribunal, spoke to Fair Go about contractors being hung out to dry, when they set aside time to do a job and turn away other work only to be let down. “At the last moment, the client or homeowner will obtain a better, sharper quote and simply tell them that they’re not needed”.
At this point, the business may have already received product and associated invoicing or incurred labour costs in preparation for the completion of the project and they are left with no funds to cover these expenses. Deposits provide reassurance that those initial expenses will be covered should a project be cancelled.
A path to fairness using Escrow services
For most, the reason for concern is not the fact a deposit is required but how the deposit is held.
Some businesses will hold deposit funds in the business account and use the funds as part of the day to day cashflow. Should the business go under, consumers are left struggling for extended periods of time to have their deposit money returned so they can begin the process again with another business. Some sadly never see that deposit money returned.
John Green suggests holding funds in a solicitor’s trust account or similar, so the business can be confident the money is available and you the customer can rest easy knowing it is secure until the agreed time for release of the funds.
We completely agree! To ensure fairness and transparency, we have implemented an escrow service for holding deposits to provide a fair solution for both the customer and our business.
Escrow services use trusts that act as an impartial third party, responsible for holding and disbursing funds only when certain conditions are met. By utilizing escrow services, both consumers and businesses can benefit from increased security and reduced risks
Introducing DG Assure Escrow
DG Assure is an independently administered escrow service, governed by NZ legislation, that ensures due care in managing customer funds. DG Assure is
audited annually to ensure its meets these strict legal requirements and operates to best practice standards. The funds are held in security for the project, in the DG Assure trust account with BNZ.
DG Assure is administrated by RetroGlaze Network LP. This admin service includes the receipting of deposits by customers and the release of funds to licensees (our local businesses) following instructions from you the customer.
At any point during the project you can view what funds are held for your project. When the RetroGlaze Partner has met the contractual obligations for the deposit then you are asked to approve the release of those funds to the business. Until that point the funds cannot be accessed.
Before the funds are released both the RetroGlaze Network LP administrators and Strettons Accountants must also approve the release of funds, ensuring that no single person can complete payment of funds from the DG Assure Trust Account.
You can pay the deposit with the assurance that it will only be spent on your project. The RetroGlaze Partner can be assured that the deposit money will be ‘released’ to them when they have met the agreed milestone on the given project, being when goods have been manufactured.
The process is made visible to you via DG Assures customer project portal. This will provide visibility of how your project is tracking and allow you to view and approve documents and transactions.
Should your circumstances change and you need to cancel your project, your funds will be returned to you excluding fair and reasonable costs for goods purchased or work completed to date.
So rest easy knowing that your hard earnt money is being kept safe, set aside in a trust to be used for your project alone with DG Assure.
