We are reviewing a contract for a new project and found a clause we have not encountered previously. In lieu of a Payment Bond, the owner is requesting payments be made to an independent 3rd Party Control Consultant who would control the funds and disbursements.
Has anyone seen this and possibly provide some insight into how such an arrangement would work? The clause also states that funds received cannot be commingled with our general funds. Does this mean in essence we set up an escrow account?
Any insights or experience with this would be greatly appreciated.
Thank you
Rick Ruhl
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Richard Ruhl
President
Ruhl & Associates LLC
Reading PA
(610) 685-0791
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