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1994 Federal Government approves Tripartite Escrow Agreements for contracts up to $100,000.

Tripartite Escrow Agreement fee is only 1½% of the contract.  

*Bid Bonds, Payment Bonds and Performance Bonds of up to $4,000,000.00.

OUR MISSION

                      To provide the highest degree of excellence and professionalism in our escrow services.

                      To perform these services at a reasonable fee consistent with the level of service delivered.

                      To seek ways to assist our customers, by going above and beyond what is expected.

                      To deliver that extra measure of value of services provided.

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, that offer more individualized attention, quicker response time and lower costs.

     Congress passed the Federal Acquisition Streamlining Act of 1994, Public Law 103-355. For more information on this Act click here. This law created Tripartite Escrow Agreements to increase the business opportunities among small-sized contractors, while presenting the government with more available contractors.

PAYMENT PROTECTION OPTIONS

      A contractor now has five (5) alternative payment protection options, per Federal Acquisition Regulation Part 28 Section 102, (for more information on FAR § 28.102, click here), and Defense Federal Acquisition Regulation Part 52 Section 228-13, (for more information on DFAR § 52.228-13, click here), the options are: 

     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.

 

OPTION #4

Tripartite Escrow Agreement

 

     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 1½% of the contract. With the Tripartite Escrow Agreement no credit report, financial statements, tax returns, working capital or work experience are needed to be approved, (for more information, click here).

     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 irrevocable letter of credit or certificate of deposit. 

OPTION #5

Payment or Performance Bonds

 
     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 individual surety such a bond at a cost of *3% to 4% of the contract amount. An individual surety can provide Bid Bond, Payment Bond and/or Performance Bond of up to $4,000,000.00, (for more information, click here).

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*Additional information and conditions for bonding will be required. Issuance of the bonds is subject to the normal underwriting requirements upon bond request.