Overview
Traditional bank escrow has been used for decades in property transactions, but it wasn't designed for construction projects with multiple milestones. Wediate offers a modern alternative that combines the security of bank-held funds with the flexibility of milestone-based releases.
Traditional Bank Escrow
Solicitors and banks have long offered escrow services, typically for property settlement. A lawyer holds funds in a trust account until conditions are met, then releases the full amount.
How it works:
- Lawyer or bank holds funds in trust
- Funds released when all conditions met
- Single release point
- High setup costs ($500–$2,000+)
- Manual, paper-based process
- Limited visibility for parties
Wediate — Digital Milestone Escrow
Wediate modernises the escrow concept specifically for construction and trade projects, using dedicated Commonwealth Bank holding accounts with milestone-based releases.
How it works:
- Dedicated holding account with unique BSB/account number
- Funds released per milestone as work is completed
- Dual approval (email + phone) for each release
- 1.5% fee (inc. GST) — no setup costs
- Online portal with real-time visibility
- Public Account Directory for verification
Why Modern Escrow Wins for Construction
| Feature | Traditional Bank | Wediate |
|---|---|---|
| Setup cost | $500–$2,000+ | None |
| Ongoing fee | Varies | 1.5% inc. GST |
| Milestones | Not supported | Built-in |
| Speed | Days/weeks | Real-time |
| Visibility | Phone/email lawyer | Online portal |
| Verification | None | Public directory |
| Integration | None | Simpro, Xero |
The Key Advantage: Milestone Releases
Traditional escrow releases all funds at once. This doesn't work for construction where payments should align with project stages. With Wediate, a $50,000 renovation might have five milestones — demolition, framing, rough-in, fit-off, and final — each with funds released only when the buyer confirms completion.
Verdict
For construction and trade projects, Wediate provides better value, more flexibility, and greater transparency than traditional bank escrow. The milestone-based approach aligns payments with project progress, protecting both buyers and sellers.
Ranking: Wediate 1st, Traditional Bank Escrow 5th