Frequently Asked Questions
Everything you need to know about protecting your building project.
Getting Started
What is Covarah?
Covarah is a UK construction project management platform that protects payments for both homeowners and builders. We use FCA-regulated escrow to hold funds securely, digital contracts to define the work, and structured dispute resolution if something goes wrong.
Who is Covarah for?
Covarah is designed for homeowners commissioning building work (extensions, renovations, refurbishments) and the builders delivering those projects. It works for projects from £5,000 to £250,000+.
How much does Covarah cost?
1.5% of the project value, processed through escrow. There are no hidden fees, no monthly subscriptions, and no setup charges. You only pay when you use the platform.
How do I get started?
Create a free account, set up your project (property details and team), create a contract with your payment milestones, and both parties sign digitally. The whole process takes about 15 minutes.
Payment Protection
How is my money protected?
All payments are held by an FCA-authorised Payment Service Provider under the Payment Services Regulations 2017. Your funds are legally safeguarded under UK law — held separately from any operational funds. Money only moves when you approve completed work.
Is this the same as paying by credit card?
No. Credit card Section 75 protection caps at £30,000 and only covers the card payment portion. Covarah provides 100% protection on the full project value through regulated escrow. There are no merchant fees, no APR risk, and no coverage gaps.
What happens to my money while it's in escrow?
Your funds are held securely by our FCA-regulated escrow partner. With Covarah's milestone-based approach, you only fund each stage as it becomes due — your remaining money stays in your own savings account earning interest until needed.
How do payments get released?
When a builder completes a milestone, they submit it for approval. You review the work and approve or raise concerns. Once approved, funds release to the builder. If you reject, the builder can rework and resubmit. Funds stay protected throughout.
Can the builder access my money before I approve?
No. Funds are held in escrow and can only be released with your digital approval, or through the outcome of the dispute resolution process. Neither the builder nor Covarah can access your funds.
Contracts
Are the digital contracts legally binding?
Yes. Digital signatures are legally valid and enforceable under the Electronic Communications Act 2000. Covarah captures timestamp, IP address, and user identity for every signature, creating a robust audit trail.
What does the contract include?
The contract covers: scope of works, payment milestones and amounts, programme dates, retention terms, insurance requirements, defects liability period, and dispute resolution process. Both parties review and agree before signing.
What if the scope of work changes?
All changes are managed through formal variation orders within the platform. Both parties must approve any variation before additional work begins. The contract value and milestones update automatically. No verbal or off-platform changes are recognised.
Disputes
What happens if there's a dispute?
Covarah provides structured dispute facilitation. First, we help both parties communicate and work towards resolution (target: 14 days). If that doesn't resolve it, an independent adjudicator is appointed through RICS, RIBA, or CIArb. For complex cases, binding arbitration is available. Courts are a last resort.
What happens to the money during a dispute?
Funds remain protected in escrow throughout the dispute process. Neither party loses money until the dispute is resolved. This removes the pressure and risk that drives unfair outcomes.
Is all communication recorded?
Yes. All project communication within Covarah is logged with timestamps and attributed to users. This creates an evidence-grade audit trail that can be used in dispute resolution. Off-platform communication is not recognised.
Security & Compliance
What does "FCA-regulated" mean?
Our escrow partner is authorised by the Financial Conduct Authority as a Payment Service Provider under the Payment Services Regulations 2017. This means they are legally required to safeguard client funds, maintain capital requirements, and comply with anti-money laundering regulations.
What are AML and KYC checks?
Anti-Money Laundering (AML) and Know Your Customer (KYC) checks verify the identity of all users. This ensures you know exactly who you're working with and complies with UK financial regulations. These checks are handled by our escrow partner.
Is my data safe?
Yes. Covarah processes data under UK GDPR. Data is encrypted in transit and at rest. You have full rights to access, correct, and delete your data. We do not sell data to third parties. See our Privacy Policy for full details.
Does Covarah hold my money?
No. Covarah is a technology platform. All funds are held by our FCA-authorised escrow partner under their own regulatory authorisation. Covarah does not hold, receive, or control user funds at any time.
For Builders
How does Covarah help builders?
Covarah guarantees your payment path. When a client funds a milestone, the money is already in escrow before you start work. Complete the milestone, get approved, get paid. No more chasing invoices. Clear contracts prevent scope creep, and documented communication protects you from unfair claims.
Do I have to pay to use Covarah as a builder?
The 1.5% platform fee is typically paid by the client as part of the escrow process. Builders benefit from guaranteed payment, clear contracts, and dispute protection at no direct cost.
What if a client unreasonably withholds approval?
Clients must approve or raise concerns within 5 working days of milestone completion notification. If approval is unreasonably withheld, you can escalate through the dispute resolution process. The evidence trail of completed work supports your position.
Still have questions?