Surety Funds Control/Escrow
When partnered with your surety bond, NACS’ funds control can mitigate project risk by closely monitoring project costs & ensuring that subs and suppliers that provided materials or performed work on the project are paid in a timely fashion.
– Specific escrow accounts are established for each respective job in the Contractor’s name and Tax ID. Absolutely no comingling of funds.
– Letter of Funds Directives are put in place creating a direct pipeline of funds from the obligee to the escrow account.
– Close monitoring of the schedule of values ensuring that funds are properly used specific to each project.
– Profit and Overhead is carefully calculated based on completion and funds received on the project eliminating front loading and the ability to rob Peter to pay Paul.
– Lien waivers accompany each check and are tracked to ensure subs and suppliers are paid up to date.
Federal Funds Control/Escrow
NACS has the ability to accept federal funds direct to the escrow account utilizing a Notice of Assignment qualifying under the Far Act. It is a common misconception in the surety world that federal funded bonded projects cannot utilize funds control or use the tool how it was intended to be used. Please contact NACS to discuss how they can solve this bonding issue for you.
General Contractor Funds Control/Escrow
NACS can work with a GC to protect funds on a project when there may be some DBE or 8A risk concerns. With joint checks becoming less and less compatible, funds control can solve the internal risk concerns a GC may encounter by ensuring that funds are being allocated to those due on the project. This tool works wonders in teaming agreement situations.
Claims Funds Control/Escrow
Not all jobs require funds control up front but often the account can take a turn for the worse mid job or mid work program. NACS can become involved at any point on a specific job either reconciling previous funds paid or funds controlling the remaining dollars on the contract.
Supply Funds Control
When there are concerns from a supplier providing product to a client that brings with them payment risk, NACS can establish an escrow account to guarantee that the supplier will be paid once product is received.