How Fund Control Helps You Manage Your General Contractor
Hiring a fund control company is an ideal way for lenders to manage funds during a construction project and make certain that the general contractor, subcontractors and suppliers are paid quickly and accurately. Fund control provides a layer of protection between the lender and general contractor, ensuring that monies are spent at the right time and in accordance with the approved construction budget. A fund control company provides services like cost reviews and site inspections, which photo document progress, further safeguarding timely and accurate project due diligence and reporting.
Managing risk throughout a project requires sound accounting practices from the project’s inception. Along the way, each draw request must be examined carefully. Fund Control will require requests to be accompanied by supporting invoices and releases. Further, they will report and consistently update the project’s scheduled completion date before payments are made.
Here are some of the things your Fund Control will do to keep a project running smoothly:
Review Payment Applications and Draw Requests
A fund control company will not only review invoices and documents for accuracy and completeness, but it will also field-verify the requested proceeds ensuring the improvements are complete. It will determine the percentage of work completed by line item, and note any variances, preventing general contractors from over billing.
Request Documents
This includes all back-up documentation required by the lender to fund the draw request, which includes copies of subcontract agreements, preliminary lien notices, change orders, invoices, releases and the like. General contractors can expect to be held to a high standard when it comes to managing paperwork and accepting accountability for draw requests.
A fund control company will also do the following: perform equity draws, track change orders, track preliminary lien notices, collect lien waivers, approve draw requests, collect proof of payments and reconcile draws to the current loan balance.
Fund Control is a proactive way to identify problems as or before they occur. They help to ensure that lenders receive accurate reporting, and help all parties to get capital deployed quickly and safely so construction progress is not interrupted.
QuickDraw Fund Control’s specialists understand the unique needs of lenders, borrowers and general contractors. With decades of working knowledge of construction and accounting, the leaders at QuickDraw Fund Control recognize that lenders want to fulfill their fiduciary responsibility and be certain they are not releasing funds to general contractors before work is complete. Likewise, they understand that borrowers and contractors are looking for speed, accuracy and responsiveness in a fund control company.
The bottom line is that fund control is wonderful insurance and protects everybody. Aiding in the oversight of millions of dollars in dispersed loans each month, QuickDraw Fund Control has ample experience in performing due diligence and disbursement services. QuickDraw Fund Control’s large community of satisfied and repeat clients span a variety of construction projects, demonstrating its merit as a reliable, trusted and valuable fund control company and partner.
Contact us about providing fund control for your next project at: info@quickdrawfundcontrol.com.