We're in the Claims Prevention Business
We control the flow of project funds and verify every cost before payment so that contractor defaults become rare and your bond exposure drops significantly.
By the Time You Know There's a Problem, It's Already a Claim.
You rely on quarterly financials and contractor updates — both can hide problems for months. When issues finally surface, they've grown from minor concerns into six-figure claims.
Funds are mismanaged. Subs aren't paid. The contractor's cash flow is propping up three other projects with money from yours. And you're left managing a costly surety claim that was entirely preventable.
The problem isn't that claims happen. It's that the warning signs were there — and nobody was watching.
Upside was brought in on a restaurant franchise build-out. The borrower — a developer — had hired a new GC to complete the work. The GC took monthly payments and didn't pay the subs and suppliers for four months. By the time the developer and lender discovered the situation, over $400K in project funds had disappeared.
Upside came in to manage the rest of the project, ensuring subs and suppliers were paid and the project resumed — but at a significant loss that could have been prevented entirely with funds administration from day one.
Real-Time Visibility and Control on Every Bonded Project
Every dollar spent on prevention saves multiples in claims costs. Here’s how we mitigate your risk:
We Control Project Funds
Cash can't be diverted to other projects. Funds stay in escrow until work is independently verified.
We Verify Every Cost
Budget problems get flagged immediately. Every invoice is reviewed against actual work before payment is released.
We Inspect the Work
Periodic site visits independently verify completion progress. Paperwork alone doesn't cut it — we confirm what's actually built.
We Pay Subs Directly
Direct payment from escrow dramatically reduces payment claim risk and keeps subcontractors working.
We Alert You Instantly
Issues surface when they're still fixable — not when they've become claims. You get early warning, not late notification.
— Two Ways We Reduce Risk
Prevention Before the Bond — or Intervention When Issues Emerge
Whether you're writing a new bond or managing an existing one that's showing stress, we can help:
Require Funds Administration as a Bond Condition
For contractors with questionable cash management or complex projects, add our oversight as a bonding requirement. You write bonds you'd otherwise decline because we control the financial variables that create risk. The contractor benefits from professional financial operations, and you benefit from dramatically reduced exposure.
Add Funds Administration When Issues Emerge
At the first sign of trouble on an existing bonded project, bring us in. We take control of remaining funds, verify costs, pay outstanding subs, and prevent small problems from becoming large claims. Early intervention is always cheaper than claim management.
Turn High-Risk Bonds into Manageable Opportunities
Funds administration doesn't just prevent claims — it opens doors. With independent financial oversight in place, you can confidently write bonds that would otherwise be too risky.
Without Upside
You see contractor opportunities you'd like to bond, but the risk is too high — marginal financials, questionable cash management, or project complexity that keeps you cautious. You're turning away business because you can't control the variables that matter most.
With Upside
Require funds administration as a bond condition. We manage both contract funds and collateral, providing dual-layer protection that transforms the risk profile of every bonded project.
The Result
You expand your book of business while mitigating your risk. Contractors you couldn't bond before become profitable relationships. Claims drop. Projects stay on track. Your portfolio grows.
How We Work With Sureties
We're your proactive risk management partner — not a passive service provider.
Speed
24-hour draws keep projects moving and eliminate contractor cash flow stress.
Transparency
Sureties get access to cost data and payment status on every bonded project.
Partnership
We alert you at the first sign of trouble so you can intervene early — not after the damage is done.
Prevention
Our model stops claims before they happen — which is far cheaper than managing them after.
Beyond Funds Administration
In addition to our core funds administration service, Upside offers complementary risk mitigation services for surety partners:
Collateral Management
Is your surety not a fan of treasury management? Upside will take the treasury headache out of collateral management – placing funds in an a collateral account in the name of the surety – and managing collateral collection and release on their behalf.
Bid Review
Independent review of contractor bids before bonding, identifying cost risks, unrealistic estimates, and potential budget shortfalls before they become your problem.
Project Cash Flow Modeling
Detailed modeling of project draw schedules, retainage, and payment timing — identifying cash flow gaps, working capital stress, and funding mismatches before they jeopardize project completion.
Let’s Prevent the next Claim
Every dollar spent on prevention saves multiples in claims costs. Partner with Upside Guaranty to add independent financial oversight to your bonded projects.