Cash Management System Program Overview & FAQ’s
The FK Construction Funding Cash Management System (CMS) program involves advancing funds on approved construction projects against verified pay applications for completed work. Our relationship with your customer is largely based on your promise to identify all expenses related to each pay application and for FK Construction Funding to pay the identified expenses and secure the related waivers or proof of payment. As a result, paying all expenses associated with each pay application at the time of disbursement is an essential part of our program.
Will you pay all my Subs, Suppliers & Vendors (SSV’s) on a funded project?
Yes, one of the core fundamentals of our program is paying all the SSV’s related to each pay application at the time of funding so that we may secure the required lien waivers and proof of payment.
What about expenses such as payroll, withholding taxes & union dues?
Yes, any unpaid expense which relates back to the project must be paid with each disbursement including payroll, withholding taxes, union dues as well as workers comp and surety payments.
What if my SSV’s have not billed me yet?
It is not uncommon for SSV’s not to have completed their billing by the time you are ready to submit a pay requisition to your customer, but we are still required to determine the amount each SSV is owed and either pay them or escrow the funds until such time as they are ready to be paid.
What if I have payment terms with my SSV’s?
The credit lines you enjoy with your SSV’s will still be available for your use on non-financed projects however on financed projects it is required that we receive proof that all the SSV’s have been paid prior to funding.
Do I have to pay expenses related to projects I am not financing?
No, expenses related to unfunded projects can be paid by you in the normal course of business and you are free to utilize your credit terms on those projects as needed.