Builders who use bank garantees should be ok.

happywriter

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Apr 25, 2009
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I have had some building work done in Portugal. Because there used to be so much bad building scams a system evolved to avoid the fraud which cowboy builders sometimes caused.
A contract was agreed; with detailed list of works, schedules, etc. The buyer placed a "bank garantee" in a bank. This was effectively an "escrow" which locked up the expected payment until released by the client. If there was a dispute it went to arbitration, the money not being released or paid back until it was resolved.
Of course, the builders did not like the system - if for no other reason than they had no "up-front" money to buy materials with. Also that they had less possibilities of scare tactics.
The genuine builders did not mind the method, merely added the costs on using their own money on to the charges. If the builder would not accept the method it was a good indication of whom one was dealing with.
 

Tony

What Consumer Founder
Apr 7, 2008
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Bolton
It does sound like a reasonable idea, but surely it would squeeze out the one-band bands and push up the cost of building work for everybody

Tony
 

happywriter

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Apr 25, 2009
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In practise the small builders arrange to bid on jobs in two ways - with or without the bank garantee. If a builder is offering the two methods, with the logical difference in price, a client is confident that the builder is genuine. The cost of the bank garantee is not excessive or complicated, and the funds can be released in periodic stages to work with the accomplished stages of the project.