Surety Bond Associates represents several surety markets that utilize project funds control as a resource to enhance M/W/DBE and veteran owned contractor’s ability to obtain surety bonds by providing small contractors with the financial assistance necessary to learn how to properly cash flow their projects and manage construction funds. Since approximately 80% of failed projects stem from cash flow problems, mismanagement of project funds, and diversion of project funds to non-project purposes, surety companies frequently require funds control to help mitigate their payment risk on a bonded project.

Project funds control essentially eliminates the payment risk. The surety’s funds disbursement department establishes a separate bank account in the contractor’s name, oversees all of the payment disbursements from the owner, and delivers checks from each draw for the contractor to distribute to their vendors, along with the contractor’s overhead and profit. The surety essentially becomes the contractor’s accounts payable backoffice.

Contact us today to learn more about our Project Funds Control services.