How Milestone Escrow Works on BilaFundi

What Are Milestones?

A milestone is a defined stage of a construction project tied to a payment. Instead of paying a lump sum upfront or trusting a provider to invoice correctly at the end, milestones split the project into agreed stages — each with a deliverable and a payment amount. The payment for each milestone is only released when the client approves the completed work.

This protects clients from paying for work not yet done, and protects providers from clients who delay payment after delivery.

How to Create a Milestone

1. Navigate to /milestones from your dashboard.
2. Click Create Milestone.
3. Fill in:
   • Title — a clear description of the deliverable, e.g. "Foundation and slab completion."
   • Provider — select the provider this milestone is for. The provider must have a BilaFundi account.
   • Amount — the payment amount for this milestone.
   • Currency — select the agreed currency.
   • Due date — when the work should be completed.
4. Click Create. The provider receives a notification that a milestone has been created for them.

Milestone Lifecycle

• Pending — the milestone has been created and is awaiting the provider to begin work.
• In Progress — the provider has marked the milestone as started.
• Submitted — the provider has marked the work as complete and is requesting approval.
• Approved — the client has approved the work. Payment is released.
• Disputed — either party has raised a concern. BilaFundi's support team can assist in resolving disputes.

Releasing Payment

When the provider marks a milestone as complete, review the work and click Approve and Release Payment. Once approved, the payment is confirmed as released to the provider. Keep records of bank transfers or mobile money receipts off-platform as confirmation.

Disputes

If there is a disagreement about whether the work meets the agreed standard, either party can flag the milestone as disputed. Document the issue clearly with photos and written descriptions. BilaFundi support reviews disputes and helps parties reach resolution. Persistent disputes may result in account review for the responsible party.

Tips for Using Milestones Effectively

• Break large projects into four to six milestones aligned with visible construction stages: foundation, superstructure, roofing, finishes, handover.
• Attach the agreed scope description to each milestone so there is no ambiguity about what "complete" means.
• Never release a milestone payment before physically inspecting the work or receiving photographic evidence.