Services

FA&A was established as a consulting firm to provide clients comprehensive, professional services for construction and surety consulting, construction services, dispute resolution and funds control.

Funds Control/Administration

Funds Control is an underwriting tool available to the Surety to ensure that contract funds are utilized for their intended purpose and eliminate potential payment bond related claims from surfacing on the bonded project. Utilizing Funds Control may provide the Surety with an alternative in underwriting a bond for a Principal that may not qualify for the bond, be financially stable, or unable to provide collateral. The use of Funds Control can benefit all parties involved, including the Surety, Contractor and Obligee.

Benefits of Funds Control:

  • Establish designated escrow account in the Contractor's Name
  • Isolates bonded contract funds
  • Ensure Project Funds are used solely for the costs incurred on the bonded project
  • Disbursements and Escrow Account controlled by the Escrow Agent
  • Checks Issued are in the name of the Contractor (Principal)
  • Ability to set aside Collateral, Working Capital, and/or Surety Holdback
  • Elimination of potential Payment Bond Claims
  • Disbursements are generally processed the day the funds are received into the escrow account (provided adequate documentation and support is received from Principal)
  • Escrow Account Register is provided to Principal every time transactions are done
  • Verify Payroll and Payroll Tax Liabilities are being paid timely
  • Tracking of Original Budgets to Actual Costs as project progresses

    • Other Benefits:

  • Prepare "Letter of Direction" to be sent to Obligee (to facilitate Contract Funds being sent direct from Obligee to Escrow Bank)
  • Payments from Obligee are still be made payable to Principal
  • Ability to utilize same escrow account for multiple bonded project with the Principal
  • Principal to obtain Final Release/Waivers from Subcontractors and Major Vendor as part of project closeout.
  • Priority of disbursements from escrow account (Subs and Vendors first, Principal second (payroll reimbursements, other costs, profit/overhead to the extent funds are available)
  • Subcontractors and Vendors get paid for work performed through the period of Requisitioned Funds.
  • Ability to track project completion, change orders and sub/vendor disbursements and lien waivers.
  • Give's Surety control to direct payments for bonded obligations
  • Principal to obtain and provide Final Release/Waivers from Subcontractors and Major Vendor as part of project closeout.
  • Can identify problems as they occur on the project