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Escrow
OUR MISSION
WHY USE ESCROWS? If you are a small-sized contractor and ineligible for bonding, you are often unable to submit proposals or offers to Federal Government agencies or departments. This not only shuts you out of the competition, but also denies the government the benefits of working with smaller companies, which would include the benefits of more individualized attention, quicker response time and lower costs.
Congress
passed a law
A
1. An irrevocable letter of credit. 2. A certificate of deposit. 3. Other deposits for the type of security listed in FAR 28.204-1 and FAR 28.204-2. There is a better choice. Pursuant to the regulations FAR 28.102 and the DFAR 52.228-13 the Government authorizes Tripartite Escrow Agreements in lieu of payment bonds, and other indicated payment protection alternatives. To utilize the Tripartite Escrow Agreement the fee is only 1% of the contract and NO one is refused.
You will find most
Government departments/agencies allow Tripartite Escrow Agreements for contracts
up to $100,000. If you
have a Tripartite Escrow Agreement as an option in your solicitation, you can
save money and time, and the financial restrictions of an
If a Tripartite Escrow Agreement is not suitable and a
Payment Bond and/or Performance Bond is the only acceptable payment
protection for a contract, Tripartite Escrow Corporation also offers via an
independent surety such a bond at a cost of *3% to 4% of the contract amount.
However, a prequalification assessment is required, such as last year's tax
returns, current financial statement(s) or 12 months bank statements, plus a
credit report from all three credit reporting agencies.
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