Subdivision Funds Control with NACS
NACS provides fully managed, documented, and transparent funds control disbursement, including subdivision funds control services.
Developers must buy subdivision bonds when working on government-required public improvements to a subdivision plot. A municipality requires the bond to protect itself from financial harm should a developer fail to finish public infrastructure work for a subdivision project.
Subdivision Funds Control with NACS
NACS provides fully managed, documented, and transparent funds control disbursement, including subdivision funds control services.
Developers must buy subdivision bonds when working on government-required public improvements to a subdivision plot. A municipality requires the bond to protect itself from financial harm should a developer fail to finish public infrastructure work for a subdivision project.
Let’s say a developer is building a new residential subdivision and plans to sell the lots before completion. A subdivision bond provides the municipality with a guarantee that infrastructure will be finished. It also enables the developer to sell the lots before the construction work of sidewalks, storm drains, streets, etc. are completed.
Due to the length of these projects and potential hiccups in supply chain issues and a broader economic landscape, subdivision bonds are considered high risk.
How We Help Mitigate Risk
NACS’ funds control services manages and disburses payments appropriately. Here’s how our service works:
- The developer or owner deposits the bond amount into a specific funds control account, and hires GC to complete the project’s build.
- As payment applications are submitted and approved, we use the funds they deposited to pay the GC.
- The bonded entity doesn’t have to go out of pocket again; it just uses the funds they’ve already deposited (typically from a lender) to pay the GC for approved payment applications.
Contact the Funds Control Experts at NCAS
We look forward to discussing our Surety Funds/Control Escrow services with you. We understand exactly the exposures and needs of sureties and how funds control makes bonding more secure.
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