Contractor FAQs

The contractor will invoice the obligee as they typically would on any other project.  When payment applications are approved, the obligee will send funds directly to the funds control account per the Letter of Directive signed by the contractor and obligee. Payments are still made payable to the contractor – just sent to NACS’ address if a physical check or to the contractor’s funds control account if payment is made electronically.

Once funds are received, NACS will work directly with the contractor to collect any invoices, pay applications for subs and suppliers, and cut checks to those subs and suppliers as well as issue payment to the contractor for any OH, Profit, labor, etc. All checks will be sent directly to the contractor for their distribution to subs and suppliers.

We typically turn funds around the same day. As long as the contractor has their Payment Request and backup documentation submitted ahead of time, we can have that all entered into our accounting system, have any questions answered, and process checks the same day funds are received from the obligee.

The contractor will provide us a schedule of value detailing the costs of the project as well as soft costs such as OH and Profit. The contractor can request OH/Profit as the job progresses and is paid on a percentage of funds received. As an example, if the funds control account has received 25% of the contract funds, NACS can pay the contractor 25% of their OH/Profit.

No worries, NACS will reimburse the contractor for direct job costs that have been paid out of pocket. We require a copy of the invoice/pay app that was paid and proof of payment which could be an unconditional lien waiver and/or copy of a cleared check.

No, NACS’ name is not on the checks, nor do we have direct contact with your subs and suppliers. All checks cut by NACS are sent to the contractor for their distribution.

No, as long as we have all final waivers and status that the job is complete, we’ll get the sign off from the surety and release any remaining funds/retainage when received from the obligee.