Disbursement Control Services

Perhaps you're having difficulty in obtaining bonding capacity from a surety or a line of credit from a bank or supplier. Perhaps you're looking to expand your business to larger projects or to different types of projects. Whenever these occur, you present a higher risk profile to your creditors. You may reduce this risk profile and enhance your credit opportunities by using our Disbursement Control Services.

Lighthouse makes sure that the money received from an owner, general contractor or a Bank gets used (a) to pay subcontractors and suppliers on the particular project on a timely basis, and (b) to pay overhead and profit to the contractor as the project progresses.

We meet with you in advance to explain the process in detail, so that you can see that it runs smoothly. In summary, when you submit your regular pay applications to the owner or general contractor, you send a copy to Lighthouse. While the owner or general contactor is processing your application, you send payment authorizations (with copies of subcontractor requisitions, vendor invoices, and partial waivers) to Lighthouse with directions to issue checks based upon your actual costs for the billing period covered by the application. Lighthouse reviews the requests and, once Lighthouse has received the contract funds, prepares the checks (only your company's name will appear on the checks) and sends them to your office within 48 hours, so that you may disburse them in the normal course.

Prior to the start of the project, you will have provided Lighthouse with information about your expected costs of construction, overhead, and profit, as well as your scope of work or schedule of values in place with the project owner or general contractor. This information is used to reimburse you monthly for your labor, material, equipment and other costs on the project, together with an agreed-upon percentage for your expected overhead and profit.