Dispute Resolution on Bidroom
While most projects complete successfully, disagreements can arise between property owners and contractors. Bidroom provides a structured dispute resolution process to help resolve conflicts fairly and efficiently while protecting both parties' interests through the escrow system.
When to File a Dispute
- Work quality does not meet the agreed specifications outlined in the project scope or contract
- A milestone is marked as complete but required tasks remain unfinished
- Materials used differ significantly from what was specified in the bid
- Timeline has been significantly exceeded without valid explanation or communication
- Contractor has become unresponsive and work has stopped without notice
Resolution Process Steps
| Step | Timeline | Description |
|---|---|---|
| 1. File Dispute | Day 1 | Submit dispute with detailed description, photos, and supporting documents |
| 2. Notification | Day 1-2 | Other party is notified and given 5 business days to respond with their perspective |
| 3. Mediation | Day 3-10 | Bidroom mediator reviews evidence from both sides and proposes a resolution |
| 4. Cure Period | Day 10-20 | If applicable, contractor is given time to fix the identified issues |
| 5. Resolution | Day 20-30 | Final decision on fund release — full, partial, or refund based on evidence |
What Happens to Escrow Funds
- When a dispute is filed, the disputed milestone funds are frozen in escrow — neither party can access them until resolution.
- Both parties submit evidence including photos, communications, contracts, and receipts.
- The mediator may authorize a partial release if some work was completed satisfactorily.
- In cases of clear contractor default, funds may be fully refunded to the property owner.
- In cases where the owner unreasonably rejects completed work, funds may be released to the contractor.
Preventing Disputes
- Clear Scope — Define detailed specifications for each milestone before work begins, including materials, dimensions, and quality standards.
- Regular Communication — Use in-app messaging to document all project discussions and decisions.
- Photo Documentation — Take progress photos at each stage of work as evidence of completion and quality.
- Written Change Orders — Document any changes to the original scope with updated pricing and timeline through the change order system.
Escalation Options
If you disagree with the mediation outcome, you may escalate the dispute to binding arbitration or pursue resolution through the appropriate legal channels. Bidroom maintains detailed records of all project communications, payments, and documents which can serve as evidence in formal proceedings. For projects over $50,000, we recommend consulting with a construction attorney.