CANCELLATION & REFUND POLICY

1. Scope.

1.1 Application. This Policy governs the cancellation of Projects booked through the Platform and the refund of Homeowner funds held in the Escrow Account. It applies to all Homeowners and Contractors who use the Platform’s Milestone Escrow service. Capitalized terms not defined here have the meanings given in the Terms of Service.

1.2 Relationship to Project Agreements. A Contractor may adopt supplemental cancellation or scheduling terms in a Project Agreement, provided they are disclosed before the Homeowner accepts the Quote and they do not reduce the refund protections this Policy provides for funds still held in the Escrow Account. Where a Project Agreement conflicts with this Policy regarding escrowed funds, this Policy controls.

2. Escrowed Funds Overview.

2.1 How Funds Are Held. Project funds paid through the Platform are processed by our PCI-DSS compliant Payment Processor and held in the Escrow Account. Funds are never released to a Contractor except when the Homeowner affirmatively releases a milestone (or, for Standard Escrow projects, final completion) through the Platform, when a refund is issued to which the Homeowner is entitled, or when an escrow determination under the Dispute Resolution Policy directs release. Ratedeed does not automatically release funds.

2.2 No Fees to Cancel. Ratedeed does not charge Homeowners any fee to post a project, fund escrow, or cancel before work begins. Cancellation itself never triggers a Ratedeed fee; the only amounts that may be retained from escrowed funds are payments for work properly performed and approved under Section 4, and Contractor-side Platform Service Fees as described in Section 10.

3. Cancellation Before Work Begins.

3.1 Before Contractor Acceptance. If a Homeowner cancels a project before a Contractor accepts the Quote or before any milestone work has commenced, one hundred percent (100%) of the funds in the Escrow Account are refunded to the Homeowner in full.

3.2 After Acceptance, Before Commencement. If a Contractor has accepted the Quote but has not commenced work on the first milestone, the Homeowner may cancel and receive a full refund of escrowed funds, unless the Project Agreement expressly provides for a documented mobilization or permitting payment for work already performed, in which case only that documented amount may be released to the Contractor and the balance is refunded.

3.3 How to Cancel. Cancellations are made through the Platform’s project interface or by contacting Support. A cancellation is effective when recorded by the Platform, and the refund clock described in Section 9 starts on that date.

4. Cancellation After Work Begins.

4.1 Homeowner Cancellation. A Homeowner may cancel a project at any time after work has commenced. In that case:

(a) funds for milestones approved and released by the Homeowner — or, for Standard Escrow projects, portions already released — remain released to the Contractor;

(b) for work performed but not yet released, the Contractor may submit a claim for the documented value of work properly performed to date, materials specially procured for the project that cannot be returned or repurposed, and documented direct costs; the Homeowner may review and object to that claim, and any objection is resolved under the Dispute Resolution Policy; and

(c) all remaining escrowed funds beyond the amounts described in (a) and (b) are refunded to the Homeowner.

4.2 Documentation. Contractor claims under Section 4.1(b) must be supported by evidence such as progress photographs, delivery receipts, permit filings, supplier invoices, or platform messages. Unsupported claims may be denied. Both Members agree to cooperate in good faith and to respond to reasonable information requests within five (5) business days.

5. Released Milestones.

5.1 General Rule. Funds that were approved and released by the Homeowner are payment for work performed and are non-refundable, except where a Milestone Objection was filed before Release and an escrow determination provides otherwise, where the Dispute Resolution Policy so provides, or where refund is required by applicable law.

6. Contractor Cancellation and Non-Performance.

6.1 Contractor-Initiated Cancellation. If a Contractor cancels a project after acceptance, all escrowed funds for uncompleted milestones are refunded to the Homeowner in full, together with any released funds the Contractor does not documentedly entitle to under Section 4.1(b). Repeated cancellations after acceptance may result in reduction in search placement, suspension of Quote privileges, or termination under Section 18 of the Terms of Service.

6.2 Abandonment. If a Contractor fails to commence or materially abandons a project without communication for a period that a reasonably prudent contractor would not allow under the Project Agreement, and does not cure after notice, the Homeowner may cancel under Section 4 and recover all unearned escrowed funds, and the conduct may be treated as a material breach of the Terms of Service.

7. Rescheduling and Project Pauses.

7.1 Mutual Agreement. Members may reschedule or pause a project at any time by agreement through the Platform. Escrowed funds remain in the Escrow Account during a pause, and no Release occurs while the project is paused by agreement unless the parties record one through the Platform.

7.2 Unilateral Delays. Delays caused by one Member without the other’s agreement do not obligate the Homeowner to release funds for work not performed, and do not affect either Member’s cancellation rights under Sections 3 through 6.

8. Release of Funds.

8.1 Manual Release. Consistent with Section 4 of the Terms of Service, funds leave the Escrow Account only when you affirmatively approve and release a milestone (or, for Standard Escrow projects, final completion) through the Platform’s release control. Ratedeed does not automatically release funds, and no passage of time alone releases them. You should review completed work promptly and release funds for work properly performed; unreasonably withholding Release without cause is a breach of good faith under the Terms of Service.

8.2 Objections Before Release. Filing a Milestone Objection before Release holds the disputed funds in escrow pending resolution under the Dispute Resolution Policy. Once funds have been released, disputes are handled under the Dispute Resolution Policy rather than by reopening the release, except where the Contractor agrees or applicable law provides otherwise.

9. Refund Processing and Timelines.

9.1 Timing. Approved refunds are initiated to the original payment method within five (5) business days of the refund determination and typically appear within five (5) to ten (10) business days thereafter, depending on the Payment Processor and the issuing bank. Ratedeed does not control bank posting times.

9.2 Method. Refunds are issued to the original funding source where possible. Where the original source cannot accept a return, Ratedeed may refund via an alternative verified method after reasonable identity verification.

9.3 Holdbacks. Ratedeed may temporarily hold a refund where there is a pending dispute, escrow review, suspected fraud or chargeback abuse, or a legal requirement, until the matter is resolved.

10. Platform Fees.

10.1 Homeowners. Homeowners are never charged the Platform Service Fee; there are no fees to post projects, receive or compare Quotes, or maintain funds in escrow, and no fees are deducted from Homeowner refunds.

10.2 Contractors. The Platform Service Fee is deducted from the Contractor’s Payout as described in Section 9 of the Terms of Service. In cancellation scenarios, the Platform Service Fee applies only to amounts actually released to the Contractor for work performed, and no Platform Service Fee is retained on refunded amounts, except that payment processing costs imposed by the Payment Processor on returned transactions may be allocated as permitted by Section 9 of the Terms of Service and applicable law.

11. Extenuating Circumstances.

11.1 Events Beyond a Member’s Control. Where a natural disaster, government order, utility failure, or other unforeseen event beyond a Member’s reasonable control makes performance illegal, unsafe, or impracticable, either Member may cancel, and funds for work not performed are refunded. Amounts for work properly performed and documented under Section 4.1(b) may still be released. This Section does not limit any rights that cannot be limited under applicable law.

12. Chargebacks.

12.1 Use the Platform First. Because project funds are held in escrow, initiating a bank chargeback before using the Platform’s cancellation and dispute procedures undermines the protections this Policy provides to both Members and may constitute a material breach of the Terms of Service. Members agree to pursue refunds through Sections 3 through 9 and the Dispute Resolution Policy first. Nothing in this Section waives any non-waivable right to dispute a charge with a bank.

13. Disputes.

13.1 Escalation. Any disagreement about the value of work performed, milestone approval, or refund amounts is resolved under the Dispute Resolution Policy, including direct negotiation, escrow review, and, where applicable, binding arbitration as described in Section 25 of the Terms of Service. This Policy does not create a second, alternative remedy for disputes about completed work.

14. Changes and Contact.

14.1 Changes. Ratedeed may update this Policy to reflect new features or legal requirements. The revised version will be identified by a new effective date and posted on the Platform, and material changes will be communicated as described in the Terms of Service. The current version applies to projects funded after its effective date.

14.2 Contact. Questions about cancellations or refunds may be directed to Ratedeed Support at support@ratedeed.com or through the Help Center.