In my previous post we discussed what fund control is. This week we will look at some of the benefits of using fund control.
How can fund control help a contractor?
Fund control can help new or growing contractors get those jobs that may have previously been out of reach. In addition, it can also serve as a training mechanism for contractors who may not have the appropriate level of ‘back room support’ to handle all the paperwork on a project. It allows the contractor to concentrate more on the project, knowing the payment stream will be handled properly. The requirement to provide the fund control company with proper project budgets and support payments is also good training for the contractor in learning how to track projects appropriately in the future.
Fund control is sometimes viewed as a requirement placed on contractors that may be suffering financially. Although this may be true in some cases, it is not true in all cases. Fund control may be the best way to generate the additional revenue needed to get a business turned around, or get a new business off the ground. For this reason, fund control should be viewed as a tool to help contractors grow.
