The Benefits of Utilizing Construction Funds Control
Construction funds control is a process wherein a third-party firm manages when and how funds are disbursed to contractors, subcontractors and suppliers on a construction project. It involves processing project-related invoices and lien releases, coordinating site inspections, providing progress reporting to all parties, and arranging for fund disbursements. At QuickDraw Fund Control, we take pride in our role as a trusted partner who helps monitor construction projects from inception to completion, ensuring that budget and funding line up with contracts and fulfillment schedules.
Since construction can be a risky business, utilizing construction funds control is a benefit to all parties in a project. There are three primary advantages to using construction funds control:
- Ensuring that funds budgeted are allocated and applied properly to the items for which they were contracted;
- Verifying that material and labor suppliers have finished their work and each bill is paid in proportion to the work completed: and
- Ensuring that all bills are authenticated and paid on time to avoid title and mechanic’s liens.
While document reviews, cost reviews and site inspections mean more paperwork for GCs, it is well worth the extra effort. Most construction projects include roughly 10-15 draws, averaging one every 3-4 weeks. Fund controllers help to keep these complex processes organized and limit the occurrence of errors that lead to missed payments or funding delays. Use of electronic record-keeping also makes information transparent and simpler to track through the lifecycle of a project.
Construction funds control is also beneficial for subcontractors. The most important task for subs is to get the right documents to the GC, so they, in turn, can submit them to the fund controller. Subcontractors should be prepared to substantiate estimate and time records, invoices and additional costs. It is also important for subs to turn documents in promptly if they want to expedite the payment process. Having funds control also ensures that subs and suppliers will be paid. If at any time there is a dispute and the GC is holding another party’s checks, they can appeal the matter to the fund controller.
It is important to choose a fund control firm that can be trusted to handle these important tasks efficiently and effectively. When selecting a construction funds control company, look for one with a documented track record of successful projects; one that is geographically compatible with the locations of your projects; one that demonstrates expert knowledge of the industry; and one that is a financially sound fiduciary.
At QuickDraw, we understand the construction industry and remain up to date on current market rates for labor and materials. Our team has decades of experience in managing the funds control process for lenders from regional banks to national institutions. Our portfolio includes ground-up construction and renovation of commercial, land development, mixed use, multifamily, residential, retail and single family projects. We embrace the use of current technologies in order to bring greater efficiency and accuracy to our construction funds control services, reducing the amount of time between when inspections occur and when draws are issued. We are also a verified FedLinks vendor that meets all requirements for doing business with the federal government.
QuickDraw is the go-to fund control partner for residential, commercial and industrial construction projects of every size, style and price point. From coast to coast, QuickDraw works to make the fund disbursement process a positive experience for all, with an array of related services, including: Fund Control, Site Inspections, Cost Reviews and Portfolio Management.