Learn How to Trust Construction Payments

Comprehensive guides on escrow, blockchain technology, fraud prevention, and building trust in the construction industry.

Core Concepts

What is Escrow?

Understanding the basics of escrow and how it protects both parties in a transaction.

  • Escrow is a financial arrangement where a third party holds and regulates payment of funds between two parties
  • Funds are only released when all terms of an agreement are met
  • Protects buyers from paying for incomplete work
  • Protects sellers from delivering work without guaranteed payment
  • Common in real estate, construction, and high-value transactions
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Construction Industry Fraud

Learn about common fraud schemes in construction and how to protect yourself.

  • Payment fraud: Contractors disappearing after receiving deposits
  • Scope creep: Unauthorized work leading to inflated bills
  • Subcontractor non-payment: General contractors not paying subs
  • Material substitution: Using cheaper materials than specified
  • False completion claims: Claiming work is done when it isn't
  • Industry loses billions annually to fraud and disputes
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Blockchain & Distributed Ledger Technology

How blockchain creates trust through transparency and immutability.

  • Blockchain is a distributed database shared across multiple computers
  • Every transaction is recorded in a "block" linked to previous blocks
  • Once recorded, data cannot be altered or deleted (immutable)
  • No single entity controls the ledger (decentralized)
  • All participants can verify transactions independently
  • Eliminates need for trusted intermediaries
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XRP Ledger (XRPL)

Why Sabeam uses XRPL for fast, low-cost, and secure escrow transactions.

  • XRPL is a decentralized blockchain optimized for payments
  • Transactions settle in 3-5 seconds (vs. hours for traditional banking)
  • Transaction fees are fractions of a cent
  • Built-in escrow functionality at the protocol level
  • Energy-efficient consensus mechanism (no mining)
  • Battle-tested since 2012 with 100% uptime
  • Supports multi-signature and conditional payments
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How Sabeam Works

A step-by-step guide to using Sabeam for secure construction payments.

  • 1. Create Project: Define milestones, amounts, and approval rules
  • 2. Fund Escrow: Client deposits funds into XRPL escrow account
  • 3. Work Begins: Contractor starts work on first milestone
  • 4. Submit Evidence: Contractor uploads photos/docs as proof of completion
  • 5. Client Approval: Client reviews evidence and approves milestone
  • 6. Funds Released: Payment automatically released to contractor
  • 7. Repeat: Process continues for each milestone until project completion
  • 8. Audit Trail: All actions recorded on blockchain for transparency
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Building Trust Through Verification

How Sabeam's reputation system and verification processes create accountability.

  • KYC Verification: Identity checks for contractors and clients
  • Reputation Scores: Based on completed projects, on-time delivery, and quality
  • Public Profiles: Showcase past work and client reviews
  • Dispute Resolution: Transparent process with third-party arbitration
  • Evidence Verification: Cryptographic hashing ensures authenticity
  • Smart Fee Incentives: Lower fees for high-reputation contractors
  • Community Standards: Industry best practices enforced through platform rules
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How Sabeam Protects You from Fraud

For Clients: Never Pay for Incomplete Work

The Problem: Traditional construction contracts often require large upfront deposits. If a contractor abandons the project or delivers substandard work, clients have little recourse and may lose their entire investment.

Sabeam's Solution: Funds are locked in a blockchain escrow and only released when you approve each milestone. You review evidence (photos, documents, inspections) before approving payment. If work isn't satisfactory, you can reject the milestone and request corrections.

Technical Protection: Every piece of evidence is cryptographically hashed and timestamped on the XRP Ledger. This creates an immutable record that proves exactly what was delivered and when. Contractors cannot fake completion or alter evidence after submission.

Dispute Resolution: If you and the contractor disagree, Sabeam's transparent dispute process involves third-party arbitration with all evidence publicly verifiable on the blockchain. The arbitrator cannot be bribed or influenced because all decisions are recorded permanently.

For Contractors: Guaranteed Payment for Completed Work

The Problem: Contractors often complete work only to have clients delay payment, dispute quality, or refuse to pay altogether. Legal action is expensive and time-consuming, leaving contractors out of pocket.

Sabeam's Solution: Clients must fund the full escrow amount before work begins. Once you complete a milestone and submit evidence, the client has a defined approval period. If they don't respond, the milestone auto-approves and funds are released automatically.

Technical Protection: XRPL's built-in escrow functionality ensures funds cannot be withdrawn by the client once deposited. Smart contracts enforce approval deadlines and automatic releases. No bank or payment processor can freeze or reverse the transaction.

Reputation Building: Every successful project adds to your reputation score, which is publicly verifiable on the blockchain. High-reputation contractors enjoy lower fees, better visibility, and more client trust—creating a virtuous cycle of quality work and fair payment.

Why Blockchain Makes This Possible

Immutability: Once a transaction or evidence hash is recorded on the blockchain, it cannot be altered or deleted by anyone—not even Sabeam. This prevents fraud, backdating, and evidence tampering.

Transparency: All escrow transactions are publicly auditable. Anyone can verify that funds were deposited, milestones were approved, and payments were released. This creates accountability and deters fraud.

Decentralization: No single entity controls the XRPL network. Even if Sabeam's servers go offline, your escrow remains secure and accessible through the blockchain. Funds cannot be seized, frozen, or misappropriated.

Speed & Cost: Traditional escrow services involve banks, lawyers, and intermediaries—each taking days and charging fees. XRPL settles transactions in seconds with fees under $0.01, making escrow practical for projects of any size.

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