Funds Administration
Funds administration is a financial management service that works to reduce risk for all participants in a construction contract by streamlining the contract funds flow throughout the projects.
How Funds Administration For Contractors Works
The general funds administration process follows:
01.
Contractors submit pay applications to project owners according to the contract payment terms.
02.
Upon approval of the pay application, the owner sends contract funds to an escrow account in the contractor’s name, managed by Upside.
03.
The contractor sends a draw request to Upside to request the funds from their escrow account. Along with the draw request, the contractor provides supporting documentation for all project costs (supplier invoices, subcontractor payment applications, and payroll documentation, etc.)
04.
Upside reviews documentation and makes direct payments to the contractor and any subcontractors and suppliers, obtaining lien waivers along the way.
A Surety May Require Funds Administration
Sureties add funds administration as a contingency to bond approval for an added layer of protection on construction projects.
Funds administration is in the claims prevention business. By keeping the funds flow moving, ensuring stakeholders get paid, and keeping the project lien-free, the risk of a surety claim is reduced significantly. As folks say, an “ounce of prevention is worth a pound of cure,” and we’ve seen it firsthand.
Upside understands funds administration gets a bad rap. Contractors sometimes feel like it’s an unnecessary complication or barrier to their usual process. We hear you. And we want to prove you wrong. By the end of your project with us, we think you’ll be convinced Upside has accelerated your project, not complicated it.
How Upside Guaranty Helps Contractors
Think of Upside as your personal cash-flow pro. We will help you:
- Plan your project spending
- Time your cash flow needs
- Pay your partners
- Complete your project on time and within budget
- Propel your business to the next level
Contact Upside Guaranty
Let’s talk about how we can reduce risk and speed up development.
upsideguaranty.com 