Trustee payment

It refers to guarantee payment through a trust account(escrow). This system is implemented to secure the transparency of payment for construction parties and to protect subcontractors, also being used in real estate transactions in the Western culture.

This system does not target all of construction project, however the projects as designated to VIP status must fulfill conditions of trustee, as client and general contractor will not directly remit or receive payment through ordinary bank account. Client has to wire payment to trustee account in advance per trustee contract, then trustee bank will operate to remit payment to general contractor after technical supervisor’s confirmation as general flow

Hence it is to set up and confirm payment plan in advance, with this sake of situation, progress measurement rate and the payment amount might be slightly different. Therefore, it is necessary to establish a payment plan through a preliminary review between the client and the contractor.