Funds Administration – Questions & Answers

What is Funds Administration?

Funds Administration, also referred to as Funds Control, is a service utilized by banks and surety companies as a condition for their providing a financing or surety bond to the customer or principal.  The overall objective is to help ensure that the project funds are obtained from the owner and properly disbursed to meet the corresponding contract obligations.

Who regulates Vista Surety Insurance Solutions and are they insured?

Vista operates through the Liberty Mutual Insurance Group of companies which are licensed and regulated by the Departments of Insurance in all 50 states and the District of Columbia.

What is the cost for funds administration?

Fees depend on a number of factors, including the type of job, the amount of the contract, job duration and the principal’s qualifications during the underwriting process.  Each outside provider is wholly independent and has their own fee structure.

How can we provide nationwide service if they are located in California?

Although our Vista office is located in Irvine, California, we are able to accomplish a reasonable turn-around time for our clients by engaging reputable third party providers which have been through an extensive vetting process and which carry appropriate E&O, Crime, and Fidelity insurance coverages pertinent to the industry.

How will the principal’s subcontractors and suppliers view Vista’s involvement in issuing their checks?

The principal’s name is printed on the issuing checks, and the processed checks are forwarded to the principal for their review and, in many cases, presenting of the checks to the appropriate payees.  If Vista or a third party provider is ever questioned by a vendor, we present ourselves as the principal’s disbursement service designed to eliminate the administrative burden from the principal, allowing them to concentrate on the project’s completion.

What kind of turnaround time can the principal expect?

In most instances, provided the principal has presented a properly completed disbursement package prior to receipt of the owner's funds, monies are forwarded within a 1-3 day period of when the owner’s funds are collected and available.