Tripartite Escrow

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.

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 (Federal Acquisition Streamlining Act of 1994 Public Law 103-355) for more information, click here, that created Tripartite Escrow Agreements (FAR and DFAR, for more information, click here) to not only assist the small-sized contractor, but also to provide the government with more contractors to bid on contracts.

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:

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 irrevocable letter of credit or certificate of deposit.

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.