Bidroom Platform Fee Structure
Bidroom charges a transparent 2.9% platform fee on all transactions processed through our escrow system. This fee supports the technology infrastructure, AI features, payment processing, dispute resolution services, and customer support that make the platform valuable for both property owners and contractors.
How the 2.9% Fee Works
The platform fee is calculated on the total transaction amount when funds are released from escrow to the contractor. For example, on a $10,000 milestone payment, the platform fee would be $290, and the contractor would receive $9,710.
Fee Breakdown
| Component | Percentage | What It Covers |
|---|---|---|
| Payment Processing | ~1.0% | Stripe payment gateway fees, bank transfer costs |
| Platform Services | ~1.2% | AI features, matching algorithms, project management tools |
| Escrow Management | ~0.4% | Secure fund holding, compliance, and release processing |
| Support & Insurance | ~0.3% | Customer support, dispute resolution, platform insurance |
Who Pays the Fee
- By default, the platform fee is deducted from the contractor's payout before funds are transferred to their bank account.
- Property owners pay the listed amount — no additional charges are added on top of the agreed milestone payment.
- For enterprise accounts, custom fee structures may be negotiated based on volume and contract terms.
Fee Comparison
The industry average for construction management platforms ranges from 3% to 8% of project value. Traditional general contractor markups typically add 15-25% to project costs. Bidroom's 2.9% fee is among the lowest in the industry while providing comprehensive project management, AI-powered tools, and secure escrow services.
Volume Discounts
- Standard — 2.9% on all transactions up to $100,000 annually.
- Professional — 2.5% for contractors with over $100,000 in annual platform transactions.
- Enterprise — Custom rates starting at 1.9% for organizations with high-volume project pipelines.
No Hidden Fees
Bidroom does not charge listing fees, bid submission fees, or monthly subscription fees for basic accounts. The only fee is the 2.9% transaction fee applied when milestone payments are released through escrow. Premium features like AI Bid Writer and advanced analytics are available through optional credit purchases.