Construction operations are driven by cash, which flows from projects, bank lines and a contractor’s personal resources. It is in this arena that a natural conflict arises between project-specific accounting and the general cash needs of the contractor. Such crossover use of cash between projects has caused sureties to seek the use of contract funds administration tools.
As an underwriting tool, project funds management responds to a specific job concern as well as to an overall need to monitor a contractor’s performance. It provides the surety some assurance that potential obligations under its bonds are being discharged. Claim administrators have used such funds control as an instrument for the direct repository of contract payments from an owner as well as for advances a surety may make to its troubled contractor. Timing, convenience in handling, segregated job accounting and security are major benefits of project funds management.
A funds account administrator can relieve the claims administrator from such tasks as job-specific recordation, monitoring costs and document management. This is accomplished through receipt and review of contractor disbursement requests; coordination with the contractor, consulting engineers, surety and bank; execution of checks; daily monitoring and periodic account reconciliation.
Invotex’s accountants and surety specialists can provide informed accurate handling of construction funds in a timely and transparent process. Using accounting software systems and internal bank programs, Invotex can quickly provide reports and set up secure, client on-line review of bank account activity. Invotex has been a trusted handler of funds since 1986 and continues to carry and protect that reputation.
Back to Claims Services
|
|
