What should your disburser do for you?

When considering a disburser for your next construction project - please ask these questions:

Who is the title underwriter?

Your construction project and its associated mechanic lien coverage are only as secure as the financial strength of its title underwriter and the best practices of the disbursing company.

Large commercial projects should always be underwritten by a financially sound underwriter.

At Accurate Disbursing our commercial projects are typically underwritten by one of the major national underwriters:

  • Stewart Title
  • Old Republic Title
  • Fidelity National Title Company
  • First American Title Company
  • Commonwealth Title Company

What is the process for paying contractors, subs and material suppliers?

At Accurate Disbursing we cut checks daily based on approved invoices and completed work. We pay all sub-contractors and material suppliers directly and receive conditional lien waivers for all checks released.

Underwriter approved general contractors may receive the first months payment with their unconditional lien waiver and pay their contractors and subs directly with those funds. They are then required to provide all lien waivers one month in arrears prior to the next payment. Collecting unconditional lien waivers for each completed line item on a construction project helps maintain loan to value for lenders and reduces overall lien risk for borrower/owners.

Can the disbursing company pay all contractors, subs and material suppliers directly?

Accurate Disbursing prefers to pay all contractors and their subs directly for the security of all their construction partners.

What is the payment process for a commercial project with an AIA pay application?

Accurate Disbursing performs on site inspections after receiving the owner and contractor approved AIA G702-703 forms. Only after reviewing these forms and the associated waivers, inspection reports and pictures do we cut and release the checks for the appropriate payees.

How often are checks cut for payments to contractors and their subs?

We process and cut checks daily.

Are there limits to the number of draws that a project may request or receive?
Are there extra fees for exceeding those suggested number of draws?

We suggest that residential draws be limited to twice a month and commercial draws be completed once a month – but we remain ready to provide our construction partners with the flexibility to create additional draws in order to facilitate construction progress. There are no extra fees for these additional draws.

How often are on-site inspections performed – and where can those inspection reports be accessed and reviewed?

Accurate Disbursing typically inspects its residential construction projects twice monthly and once per month for its commercial projects. The reports and pictures are uploaded daily on our disbursing software Disbursa.

How often are inspection pictures taken – and where can they be viewed?

Accurate Disbursing requires its inspectors to take digital pictures on every on-site inspection and to upload them daily on our online software so that all of our construction partners may view them.

Does the disbursing company have an errors and omissions policy – and in what amount is its coverage?

Accurate Disbursing carries an errors and omissions policy for $1,000,000 per occurrence.

Does the disbursing company have employee fidelity coverage (Fidelity Bond)?

Accurate Disbursing believes in the belt and suspenders to customer funds security. We also carry employee fidelity insurance.

Can you speak to lenders, contractors, and subs that have used their disbursing services?

Contact us for a list of Accurate Disbursing lenders, contractors and developers with whom you may communicate.

The key to a successful disbursing project:

Communication is the ultimate key to a successful construction disbursing project. Your information about your project should always be available and should include real time data and the information below:

  • Complete construction budget by line item
  • Construction loan balances
  • Equity funds balances
  • Line item disbursements
  • Line item balances
  • Construction completion percentages by line item
  • Monthly or bi-monthly inspection reports
  • Draw requests and draw receipts
  • Payment requests
  • When bills were paid
  • Dated digital pictures of construction progress

Each of the items above is a critical piece of information for all construction partners to be able to review and understand.

At Accurate Disbursing we share all of the above daily through our proprietary online disbursing system Disbursa. If your disbursing company does not provide all of these critical pieces of information to you in a format available for your review 24/7 – there is a reason why!