When can I use an escrow agreement?
Check your specific solicitation of your contract. You will find most government departments/agencies allow Tripartite Escrow agreements in lieu of payment bonds for projects up to $150,000. If you have a Tripartite Escrow agreement as an option in your solicitation you can save much money and time, and avoid the anxiety and possible disappointment caused by dealing with bonding companies. Tripartite Escrow Company’s fee is only 1 ½% of the total contract amount.