FAQs

A Tripartite Escrow agreement involves several entities contractor, Business Bank of Texas as escrow agent, subas escrow agent, sub-contractors, and suppliers of material and/or labor. The Government makes payments to the contractor’s escrow account, and the escrow agent distributes the payments in accordance with the agreement, or triggers the disputes resolution procedures if required.

• NO personal or company financial statements.
• NO collateral required.
• NO disclosure of license information.
• NO work history needed.
• NO initial formal or informal meetings between contractor and escrow agent (Business Bank of Texas).
• NO attorney, banker or accountant referrals.
• NO establishing or justifying contractor’s projects’ work in progress.
• NO information about contractor’s credit history or any of its financial accounts.
• NO disclosure of contractor’s personal or company assets.
• NO indemnification by contractor.
• NO limitations on number of contracts.
• YOU can bid as many solicitations as you desire.
• YOU pay a fee of only 1 ½% of the total contract amount.

Pursuant to the Federal Acquisition Regulation Part 28 Section 28.102, (FAR 28.102), and Defense Federal Acquisition Regulation Part 52 Section 228-13, (DFAR 52.228-13) the federal government authorizes Tripartite Escrow agreements in lieu of Payment Bonds

Tripartite Escrow Company is presently unaware of any such escrow agreement or instrument. The maximum threshold for a Tripartite Escrow Agreement is $150,000. The purpose of this alternative payment protection is to assist small businesses performing contracts $150,000 and less for the federal government.

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Tripartite Escrow Company will assist in establishing the Tripartite Escrow Agreement with the contracting officer. This service by Tripartite Escrow Company is completely free for those who have established an account with Tripartite Escrow Company.