Escrow in Construction: What Changes for Contractors and Suppliers
Uzbekistan's new escrow law keeps buyer money in a bank until the building is finished. Here's what it means for construction suppliers and contractors.
What the new law does
Uzbekistan's Legislative Chamber has passed a law on escrow accounts in shared construction. Buyers' money will now sit in a bank account, not with the developer. The developer gets it only after the building is commissioned. All shared-participation contracts and their amendments must be notarized. The rules apply to projects whose construction permit is issued after the law takes effect. Earlier, the Senate made notarization mandatory for both contracts and amendments.
The goal is simple. Before, buyers' money went straight to the developer. If the project stalled or the company went bankrupt, buyers lost everything. Now the bank holds the funds until the building is ready. The law also tightens requirements for developers and sets protections for buyers if deadlines slip.
What it means for suppliers
The main change is in cash flow. Developers can no longer freely use buyers' money. It stays in the bank until the project is finished. Some developers may have less working capital for purchases. They will watch payment terms and delivery schedules more closely. But the money does not disappear. It is tied to the project, and the developer gets access as completion nears.
Suppliers who work with clear contracts and documented delivery stages can benefit. Banks and developers will demand orderly paperwork. Contractors and suppliers should tidy up their contract base now: acts, specifications, payment schedules. It is hard to say when new procurement will appear. The law applies to projects permitted after it takes effect, and the sources do not give the exact start date. But construction procurement runs constantly. According to TenderLabs, as of 10 November 2026 there are 2,490 open lots in the Construction sector.
What to do now
- Check your contracts with developers: do they have clear stages, payment deadlines and terms for funding delays?
- Organize documents from past deliveries — acts, invoices, specifications. You will need them if the developer reports to the bank.
- Ask your developer partners how they plan to work with escrow and whether their procurement schedule will change.
- Watch construction lots on tender platforms. New projects under the new rules will appear after the law takes effect.
- If you raise money from buyers yourself, prepare contracts for notarization in advance. It is now mandatory.
TenderLabs can help you track construction lots and stay ahead of these changes.
Photo: Kun.uz