FK Construction Funding is a cash management and funds control company that provides monitoring, compliance and risk mitigation services for owners, general contractors and qualifying subcontractors.
We founded the program on the idea that liability on construction projects is greatly diminished when there is transparency and collaboration among all participants, including owners, general contractors, subcontractors, sub-subcontractors, suppliers and vendors. This philosophy has been the guiding force in designing effective solutions that involve monitoring all aspects of the projects finances and mitigating the related risk by identifying project related liabilities through our proprietary Payment Assurance Program.
The program enables the general contractor’s subcontractors to increase efficiency, alleviate back office demands and control costs by closely monitoring the projects balance sheet. The result is a seamless and automated processes that mitigates risk, reduces cost, and improves cash flow.
*Advanced Funding Program is available to qualifying 1st and 2nd tier subcontractors. This program automatically comes with the premium service and involves advancing funds to subs, suppliers and vendors. The cost of this program is typically passed onto the subs, suppliers and vendors SSV’s in exchange for early payment.
FK Construction Funding provides cash management and risk mitigation solutions for the commercial construction industry. Our Cash Management Services (CMS) advances funds to subcontractors against completed work and mitigates the General Contractors risk by paying all of the subcontractor’s suppliers, vendors and sub-subcontractors (including insurance premiums and union dues) by joint check. Only the remaining balance is released to the subcontractor. This is all managed through our proprietary CMS platform.
The CMS program allows the General Contractor to have all lower tier lienors and supplier releases prior to making payment and the peace of mind knowing the subcontractor is able to make weekly payroll and keep the job on schedule, thereby preventing delays. Unpaid suppliers and potential liens will no longer be the burden of the General Contractor. FK Construction Funding clears the project of financial liabilities on a monthly basis and provides affidavits, lien releases, payroll reports and much more within 20 days of funding (which is typically about 20 days before the General Contractor makes payment to the subcontractor for the period in question).
Prior to making any advances to the subcontractor, FK Construction Funding will ensure that all payment applications to the General Contractor are accompanied by the required documentation such as proof of insurance, union status letters, certified payroll, notarized affidavits and partial or final releases. We will also review the pay application and schedule of values for accuracy with the General Contractor each month prior to releasing funds to the subcontractor and the suppliers.
FK Construction Funding monitors the subcontractor for the following (and much more):
The CMS Program is Administered at No Cost to the General Contractor:
While surety bonds offer valuable protection once a bond claim is filed the subcontractor (and possibly the project) is already in trouble. More and more General Contractors are using the CMS program because they prefer the proactive approach to mitigating unnecessary risk which in turn prevents routine issues from becoming serious problems.