Sometimes when a CPA statement is not available, a bond company may condition a bond with Escrow Funds Control.

Escrow Funds Control is like you hiring a money manager for a specific project. You will receive a call from the Funds Control Individual that the bonding company appoints and he/she will give you the particulars on what is needed.

The process is when your company submits to the owner for payment, the owner (the library) will first send the payment through the Escrow Agent where you will in turn work with that Escrow agent to disperse monies for bills, etc. This guarantees the bond company for that specific job that the monies will remain on that job and you will retain your profits for that job. It protects them that the monies for this specific job cannot be diverted to any other job.

We have done this for many of our contractor clients in the past with success and it will be outlined to you by the Escrow Funds Individual.

Finally, the Escrow process has a fee that is separate from the bonding premium that was quoted above. The Escrow Funds Individual will let you know whether that will be .75% of the entire contract amount or 1%. This money is not like the bond premium that is paid up front. It comes out of the job per the draws you receive (payments) from the Owner of the project.