On this page
- What “I Agree” actually means
- Anatomy of a Leo contract
- Contract rigour by price bracket
- Payments, escrow & the materials card
- Variation orders — how changes work
- The Leo materials card in detail
- Dispute resolution — aparejador, arbitration, court
- Cancellations & card suspension
- Bringing your own contract
- Frequently asked questions
1. What “I Agree” actually means
The moment both parties tap “I Agree” on a Leo scope, a binding construction agreement forms between the homeowner and the professional — not with Leo.
Leo is neither the contractor nor the client. We are the platform that structures the agreement and holds the payment infrastructure. The contract is between you and the person doing (or commissioning) the work.
By tapping “I Agree” both sides confirm:
- The scope of work accurately describes what will be built, repaired, or installed
- The itemised pricing (unit rates × quantities) is accepted
- The milestone schedule and payment terms are understood
- Both parties agree to handle changes through variation orders, not verbal side-deals
- Disputes will follow the resolution process described below, before any legal action
Why this matters: A clear, written agreement protects both sides. The homeowner knows exactly what they are paying for. The professional knows exactly what they are expected to deliver. No ambiguity, no “I thought you meant…”
2. Anatomy of a Leo contract
Every Leo job agreement contains the same core elements, drawn from standard Spanish construction contracting (contrato de obra) and international works procurement practice.
The parties
Full legal identity of both the homeowner (or property owner / authorised representative) and the professional (autónomo or company with CIF). The property address where the work will take place — the legal site.
The object — scope of work
A structured description of what is to be built. Not a vague paragraph — an itemised list of work packages, each with:
- Description of the task (e.g., “Remove existing tiles in main bathroom, 12 m²”)
- Unit of measurement (m², linear metre, unit, lump sum)
- Quantity
- Unit rate (€/unit)
- Line total
This is the same structure used in professional presupuestos across Spain. It makes pricing transparent and variations easy to calculate.
Total price & payment milestones
The contract total is the sum of all line items, plus the Leo platform fee (5%, paid by the homeowner). Payments are tied to milestones — not calendar dates. Money moves when work is done, not when time passes.
Timeline
Estimated start date, estimated completion date, and expected duration of each milestone. These are good-faith estimates — delays happen on building sites. What matters is that both sides can see the plan and flag slippage early.
General conditions
Governing law (Spanish law), variation order process, dispute resolution, force majeure, insurance requirements, site access, and cleanup obligations.
3. Contract rigour by price bracket
Not every job needs the same level of paperwork. A €300 tap replacement and a €45,000 kitchen renovation are different beasts. Leo scales the formality to match the risk.
| Job value | Agreement level | What’s included |
|---|---|---|
| Under €1,000 | Simple scope | Itemised description, total price, single payment on completion. Lightweight — disputes resolved via Leo’s AI-assisted review. |
| €1,000 – €5,000 | Standard agreement | Full scope with unit rates, 2–3 milestones, materials card option, variation order process, standard dispute resolution. |
| €5,000 – €20,000 | Detailed agreement | Everything above, plus detailed payment schedule, materials tracking via Leo card, photo documentation requirements at each milestone, independent review available for disputes. |
| Over €20,000 | Full construction contract | Comprehensive agreement with retention clause, insurance verification, detailed programme of works, penalty provisions for significant delay, formal independent arbitration for disputes. |
The principle: Higher value → more rigour. But even the simplest tier gives you a written record, payment protection, and a dispute process. That is more than most homeowners in Spain get today.
4. Payments, escrow & the materials card
Money is where most renovation disputes start. Leo’s payment structure is designed to prevent problems, not just resolve them after the fact.
How milestone payments work
Both sides agree to the scope
The homeowner’s total payment is processed through Stripe. Funds are held — not released.
Materials advance (typically 30–40%)
Released to the professional or loaded onto the Leo materials card. This covers upfront material costs so the professional doesn’t fund your project from their pocket.
Milestone completion
The professional marks a milestone complete with photos. The homeowner reviews and approves. Payment for that milestone is released.
Final sign-off
The homeowner confirms the work is complete. Remaining funds (minus the 5% platform fee) are released to the professional.
| Megaflo Eco 170i cylinder | €620 |
| Installation labour (1 day) | €280 |
| Safety valves + fittings | €85 |
| Leo service fee (5%) | €49.25 |
| Your total | €1,034.25 |
The 14-day safety net: If a professional marks a milestone complete and the homeowner doesn’t respond within 14 days, Leo reviews the evidence and may release funds. This protects professionals from being held hostage by unresponsive clients.
5. Variation orders — how changes work
On a building site, surprises are normal. You open a wall and find damp. The client decides they want a different tile. The original spec missed something. What matters is how changes are handled.
In standard Spanish construction practice, a variation order (modificado de obra) is simply an amendment to the contract. The original agreement stays in force — the variation adds, removes, or changes specific items.
Common reasons for a variation
- Unforeseen site conditions — hidden damp, unexpected structural issues, asbestos, outdated wiring
- Client-requested changes — upgraded finishes, additional rooms, changed layout
- Regulatory requirements — building inspector requires additional work for compliance
- Material substitutions — specified product unavailable, alternative proposed
- Scope clarifications — original scope was ambiguous, both sides agree on interpretation
How a Leo variation order works
Professional submits the variation
Through Leo: what changed, why, photographic evidence, the cost impact (using the same unit-rate format as the original scope), and the timeline impact.
Homeowner reviews
The homeowner sees exactly what is proposed, how much it costs, and why. They can accept, negotiate, or decline.
Both sides accept → contract amended
The variation becomes part of the agreement. New milestones and payments are added. The audit trail is preserved.
The homeowner is never obligated to accept a variation. If they decline, the professional completes the original scope as agreed. No verbal side-deals, no “we’ll sort it out later.” Everything is written, timestamped, and traceable.
James found corroded pipe behind the wall during installation — needs replacing for safety before continuing.
6. The Leo materials card in detail
The materials card solves a fundamental problem: professionals shouldn’t have to finance your materials out of pocket, but homeowners shouldn’t hand over cash with no visibility on how it’s spent.
How it works
When the contract includes a materials advance, the homeowner can opt for a Leo materials card instead of a direct bank transfer. This is a prepaid card issued to the professional, loaded with the materials budget from the escrowed funds.
- Every transaction is logged — merchant, amount, date, category
- Purchases are matched against the agreed materials list in the scope
- The homeowner has read-only visibility of all card transactions in real time
- Receipts and invoices from suppliers are attached to each transaction
Where can materials be purchased?
Anywhere the professional normally buys — builders’ merchants, Leroy Merlin, Porcelanosa, specialist suppliers. Materials can be delivered to the job site, the professional’s workshop, or collected in person. The card works wherever Mastercard/Visa is accepted.
Spending controls
The card is limited to the agreed materials budget. If the professional needs to exceed the budget (e.g., due to a price increase from the supplier), they submit a variation order for the difference. The homeowner approves, and additional funds are loaded.
When can the card be suspended?
The card is a contractual tool, not a punishment lever. It can only be suspended in specific circumstances:
| Situation | Can the homeowner suspend the card? | What happens |
|---|---|---|
| Spending outside the agreed scope | Yes | Homeowner flags the transaction. Professional must justify. If unjustified, card is suspended pending resolution. |
| Contract formally terminated by either party | Yes | Card is automatically suspended. Remaining balance returned to escrow for settlement. |
| Homeowner is unhappy with progress but contract is not in breach | No | The proper route is a conversation or, if needed, a dispute. Not a unilateral card freeze. |
| Professional is behind schedule but still within reasonable tolerance | No | Delays are normal on building sites. The contract allows for reasonable schedule adjustment. Card stays active. |
| Professional is significantly in breach (abandoned site, serious defects) | Yes, via Leo | Homeowner raises a formal dispute. Leo reviews evidence and may suspend the card as a protective measure. |
The principle: The materials card is governed by the contract, not by mood. If the contract is in force and the professional is performing, the card stays active. If there is a legitimate concern, the dispute process handles it — not a surprise card cancellation.
7. Dispute resolution
The best dispute is the one that never happens. Clear scopes, milestone payments, and written variation orders prevent most problems. When something does go wrong, the Leo agreement provides a structured, proportionate path — from a 48-hour cool-down through to court enforcement.
The escalation ladder
In-app mediation — automated, 48 hours
Leo generates a case file automatically and opens a structured conversation. Both sides state their position against the documented record. Most disputes — scope misunderstandings, timing, communication failures — resolve here at no cost.
Remote aparejador review — 3–5 days
If unresolved, Leo commissions a qualified Arquitecto Técnico (aparejador) to review the dispute remotely. The aparejador examines the scope document, milestone photos from both parties, variation order records, and invoices. They issue a written professional opinion — work within scope, outside scope, or insufficient remote evidence — signed under their COAAT colegio registration. This opinion is legally admissible in Spanish arbitration and civil court.
Physical aparejador site visit — where remote review is insufficient
If the remote aparejador states they cannot determine the disputed fact from documentary evidence — for example, a hidden structural defect or a question about materials actually installed — the dispute escalates to a physical site visit. The aparejador inspects in person, issues a full informe pericial (expert report), and this becomes the basis for the next stage. Physical visit cost: approximately €300–600, typically borne by the losing party.
Junta Arbitral de Consumo — free consumer arbitration
Leo prepares a complete submission to the relevant Junta Arbitral de Consumo under Real Decreto 713/2024: pre-filled form, signed scope, aparejador report, payment records, and communication history. Every Leo contractor commits to this arbitration system when they join the platform. Every Leo contractor agrees to participate in arbitration when they join the platform. If they refuse to participate when invited by the Junta, that refusal is documented as a breach of the Leo service agreement and strengthens the homeowner’s case in subsequent court proceedings. The arbitration laudo (award) has the same legal weight as a court judgment and is enforceable against the contractor’s assets.
Procedimiento Monitorio — court payment order (no lawyer required)
For money owed that the contractor disputes or ignores, the procedimiento monitorio allows a homeowner to file a petition at the local Juzgado de Primera Instancia without a lawyer, regardless of the claim amount. If the contractor does not respond within 20 days, the court issues an automatic enforcement decree — a judgment debt enforceable against their bank accounts and assets. Leo prepares the pre-filled petition from the case file.
Juicio Verbal / Juicio Ordinario — civil litigation
For contested claims: Juicio Verbal for amounts under €15,000 (no lawyer required under €2,000, threshold raised to €15,000 by RDL 6/2023); Juicio Ordinario for amounts over €15,000 (lawyer required). Under Ley Orgánica 1/2025, prior MASC (mediation/arbitration) attempt must be documented before proceeding to a Juicio Ordinario — Leo’s arbitration step fulfils this requirement. Leo provides the full case file and can refer to construction law specialists for this stage.
The arbitration clause in this agreement
By accepting a Leo scope, both parties agree to the following:
“Las partes acuerdan someter cualquier controversia derivada del presente contrato a la Junta Arbitral de Consumo competente, de conformidad con el Real Decreto 713/2024, de 23 de julio. En caso de que la controversia no pueda resolverse por vía arbitral, las partes se someten a la jurisdicción de los juzgados y tribunales del lugar de ejecución de la obra.”
Translation: Both parties agree to submit any dispute to the competent Consumer Arbitration Board (Junta Arbitral de Consumo) under RD 713/2024. If arbitration fails, disputes go to the courts of the project location.
Every Leo contractor commits to arbitration as a condition of joining the platform. If they refuse to participate when invited by the Junta, that refusal is documented as a breach of this agreement and strengthens the homeowner’s case in any subsequent court proceedings. Leo documents that refusal as part of the case file.
Platform-level protections on dispute
The moment a dispute is flagged, Leo takes immediate action on the platform without waiting for any determination:
- The contractor’s materials card is frozen — no further purchases on any job
- All pending milestone payments are withheld across all their active Leo projects
- New job matching is paused — they do not receive new homeowner enquiries
- The case file is generated and delivered to both parties
These protections apply symmetrically: if a homeowner raises a false dispute, the same evidence trail and aparejador process defends the contractor. The platform does not take sides — it enforces the contract.
What Leo looks at in a determination
- The original scope of work and accepted unit rates
- All variation orders (accepted, declined, or pending)
- Milestone completion photos and timestamps
- Communication history between both parties
- Materials card transaction records (if applicable)
- Market pricing data for the work in question
- Aparejador written opinion (remote or physical, if commissioned)
The contract is the referee. Because every Leo job has a clear scope, itemised pricing, photo evidence, and a written variation trail, disputes are resolved on facts — not on who argues louder. See the full dispute process →
8. Cancellations & card suspension
Sometimes things don’t work out. Here is what the contract says about ending the relationship early.
Homeowner wants to cancel
Under Spanish consumer protection law and the Leo agreement:
| Timing | What happens |
|---|---|
| Before work starts | Full refund of escrowed funds, minus any non-refundable materials already purchased on the Leo card (with receipts as proof). |
| During work — no breach by professional | The homeowner pays for work completed to date (based on milestone percentages) plus materials already purchased. The professional is entitled to reasonable compensation for mobilisation costs. Remaining escrow is returned. |
| During work — professional in breach | If the professional has abandoned the site, produced seriously defective work, or is in material breach, the homeowner can terminate and claim back funds proportionate to the undelivered work. Leo facilitates the determination. |
Professional wants to cancel
Professionals may withdraw from a contract for legitimate reasons (serious illness, force majeure, client making the site unsafe or inaccessible). In such cases, they are paid for work completed and materials supplied. The homeowner receives the remaining escrow.
A professional who abandons a job without legitimate cause forfeits claim to unreleased milestone payments and may face a review note on their Leo profile.
The card follows the contract
The materials card is an instrument of the contract. When the contract is in force, the card is active. When the contract terminates (by completion, mutual agreement, or formal cancellation), the card is suspended and the balance is settled as part of the final account.
9. Bringing your own contract
The Leo standard agreement works for most jobs. But if you already have lawyers, or your project requires a bespoke contract, Leo supports that too.
You can import your own construction contract into Leo. When you do:
- Your contract governs the relationship between homeowner and professional
- Leo’s escrow and milestone payment system still applies (it’s how the money flows)
- The materials card, if used, still follows Leo’s card policies
- Leo’s dispute resolution is available as an option, but your contract’s own dispute clause takes precedence if it specifies one
The default is designed to be enough. The standard Leo agreement is based on Spanish construction law, international works procurement norms (FIDIC-lite for residential), and our domain expertise. Most homeowners and professionals will never need their own lawyers. But the option is there.
10. Frequently asked questions
Quick answers to the things people ask most.