Get to know the 5 top reasons why Escrow / Funds Control is a great option for contractors:

  1. Escrow can help to mitigate or prevent claims against the Contractor's payment bond, reducing the risk of excessive legal costs and a loss of the ability to receive additional bonding while claims are unresolved.

  2. The Escrow provides a review of the Contractors payment procedures and insures that the proper project documentation is maintained in the event of a dispute arising between the Owner and the Contractor (undocumented Change Orders, Back Charges...etc), or between the Contractor and his vendors.

  3. The Escrow will track the contract funds to insure that all said funds are applied to project costs and not co-mingled with funds from other projects.

  4. The Escrow will provide project specific and invoice specific lien waivers with each vendor payment, thereby insuring that a vendor providing materials or labor to the Contractor on multiple projects on an open account cannot apply a balance from a different project to perfect a claim on the bonded project.

  5. In the event of a dispute between the Contractor and a vendor, the fact that the disputed funds are being held in escrow will often enhance the possibility of a swift resolution, and may be required by statute.

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