Milestone Transactions

Milestone transactions are ideal for orders that need to be delivered in stages, otherwise referred to as milestones. A good example is a web development project that involves many stages and the client has to approve or suggest edits and improvements along the way. Due to the nature and scope of such a project, a client cannot pay the entire cost in advance because the developer may fail to deliver. Such a project can be delivered in several stages in such a way that the developer only proceeds to the next stage once the client is satisfied with the current one.

Advantages of a Milestone Transaction
  1. It lowers risk for both parties: In the event that the service is not fully delivered, there is only a partial loss. This is because the client will have only paid for the delivered milestone only. On the same breath, the contractor can only lose compensation for a single milestone if the work done is not accepted.
  2. It saves time and minimizes revisions: When instructions are not clear, the amount of revisions to be made can be too much. However, with a milestone service, this is limited to a specific stage only.
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How Escrow Kenya's Milestone Services Works
  1. The client and contractor agree to use our escrow service: Important points of consideration such as number of milestones, description of each milestone, cost, who pays the escrow fee, any shipping, inspection period, etc. The cost can vary from milestone to milestone.
  2. The client pays Escrow Kenya for the first milestone: Escrow Kenya verifies the payment and notifies the contractor to start working on the project.
  3. The seller delivers the milestone: The agreed inspection period commences. The contractor addresses any issues of concern by the client. Once the client is satisfied with that milestone, the contractor marks it as delivered.
  4. The client accepts the milestone: Having been satisfied by the delivery, the client accepts the order, which changes its status from "delivered" to "completed".
  5. Escrow Kenya releases the payment to the seller: This ends the first milestone and commences the next one, which goes through the same process. The milestone transaction ends when all the milestones have been delivered and accepted or when the buyer chooses to terminate the project.
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See Also

Broker Escrow

Motor Vehicle Escrow

Electronics Escrow

Freelancing Accounts Escrow


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