Skip to Content
On This Page

funds control

Funds control is an arrangement employing an independent third party to disburse the construction funds to the various trade contractors and suppliers on a given project, often mistakenly believed to be a viable alternative guarantee to a contract bond.

Additional Information


Marshaling the contract funds and disbursing them pursuant to approved payment requests mitigates the possibility of a payment bond type claim. It does not, however, guarantee that the project will be built per plans, on time, within budget, and that all bills will be paid.