One fee, fully explained.
What your fee pays for, what it comes to on a real project, and how Covarah compares with other ways to pay.
What your fee covers
Everything a project needs to stay agreed, funded and on the record, for both sides.
Protected stage payments
Each stage is paid into regulated escrow with Transpact before work starts. The homeowner approves the work, then releases the payment. Everyone who pays or gets paid is identity-checked.
A contract you both sign
Scope, stages, prices and dates, agreed and signed online. Every change is a written variation the homeowner approves before the price changes, with no extra charge to the builder.
The project record
Messages, calls and documents sent through Covarah stay on the project record, alongside updates, photos and approvals.
A clear dispute process
Facilitation from our team first, then an independent professional if it’s needed. The money stays held in escrow until it’s settled.
Also on the way
Split a stage into parts
Coming soonPay each part of a stage to whoever is owed it, and hold back only the part in dispute.
Your choice of insurer
Coming soonPick the cover that suits your project, with what’s covered set out plainly.
Property Passport
Coming soonA lasting record of the work done on your home, to hand to buyers, surveyors and insurers.
About the Property Passport
One fee, paid by the homeowner.
Free for builders. No subscriptions, and no setup fees.
of the project value
The same rate whatever the size of the project. Fees exclude VAT, as set out in our terms.
What that looks like
| Project | Project value | Covarah fee |
|---|---|---|
| Kitchen renovation | £25,000 | £375 |
| Extension | £100,000 | £1,500 |
| Full renovation | £200,000 | £3,000 |
Worked out at 1.5% of the project value, excluding VAT.
How it compares with other ways to pay
Each option does something different with your money while the work is being done. Here’s how they compare, in plain terms.
| Way to pay | Where the money is during the work | What else you get | If something goes wrong |
|---|---|---|---|
| Covarah | Each stage is held in regulated escrow with Transpact, from before it starts until the homeowner approves it. | A signed contract, written variations, the project record and identity checks. | The money stays held while a clear dispute process runs. |
| Consumer escrowA general-purpose escrow service | Held by the escrow provider. | Usually nothing else: no contract, stage plan or project record. | Settled under the provider’s own terms, using whatever evidence you’ve kept yourselves. |
| Bespoke escrowAn escrow agreement drawn up for one deal | Held under an agreement drawn up for your deal, usually with solicitors involved. | Set up one-off, with costs that suit large commercial deals more than home projects. No project tools. | Settled under the terms of that agreement. |
| Credit card | Already paid to your builder. | Section 75 protection, for purchases between £100 and £30,000 paid at least partly by credit card. Interest if you don’t clear the balance. | A claim against your card provider, made after the money has gone. |
| No protectionBank transfer or cash | Already paid to your builder. | Nothing. | Getting the money back can mean going to court. |
Covarah
- Where the money is during the work
- Each stage is held in regulated escrow with Transpact, from before it starts until the homeowner approves it.
- What else you get
- A signed contract, written variations, the project record and identity checks.
- If something goes wrong
- The money stays held while a clear dispute process runs.
Consumer escrow
A general-purpose escrow service
- Where the money is during the work
- Held by the escrow provider.
- What else you get
- Usually nothing else: no contract, stage plan or project record.
- If something goes wrong
- Settled under the provider’s own terms, using whatever evidence you’ve kept yourselves.
Bespoke escrow
An escrow agreement drawn up for one deal
- Where the money is during the work
- Held under an agreement drawn up for your deal, usually with solicitors involved.
- What else you get
- Set up one-off, with costs that suit large commercial deals more than home projects. No project tools.
- If something goes wrong
- Settled under the terms of that agreement.
Credit card
- Where the money is during the work
- Already paid to your builder.
- What else you get
- Section 75 protection, for purchases between £100 and £30,000 paid at least partly by credit card. Interest if you don’t clear the balance.
- If something goes wrong
- A claim against your card provider, made after the money has gone.
No protection
Bank transfer or cash
- Where the money is during the work
- Already paid to your builder.
- What else you get
- Nothing.
- If something goes wrong
- Getting the money back can mean going to court.
A general guide, not financial advice. Check the terms of any service before you use it.
Pricing questions
More answers in the FAQ.
Why might Covarah cost more than some alternatives?
Some alternatives charge a low flat fee for basic payment protection, and only secure a small deposit upfront. Covarah’s fee covers more: every stage protected before work starts, the contract and written variations, a project record of messages, calls and documents, identity checks by Transpact, and a clear dispute process with the money held throughout.
Coming soonSplit stage payments, a choice of insurer and the Property Passport.
It’s a wider scope of protection, not a cheaper version of the same thing.
Who pays the fee?
The homeowner. It’s 1.5% of the project value. Builders don’t pay anything to use Covarah: they get stage payments funded before they start, a clear contract and the dispute process, free.
Do I pay for the whole project upfront?
No. Only the next stage is paid into escrow, before it starts. The rest of your money stays with you until it’s needed.
Is there anything else to pay?
There are no subscriptions or setup fees. Our fee excludes VAT, as set out in our terms.
Transpact, the FCA-authorised provider that holds the money, charges a small fee of its own on each stage payment.
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