When arranging the financial settlement for (construction) projects, contractors require payment security and their clients need performance security. By establishing an escrow agreement,
the Escrow Agent (Bank) can execute the required cash management and the safe distribution of the (pre-)payments and thus provide certainty to all beneficiaries that they will receive their money.
There are many possible applications for the project escrow. Examples of project escrow include contracting projects, public-private projects and the safe distribution of subsidies.
The escrow agreement is generally initiated by the client’s project managers and is structured in close cooperation with
the Escrow Agent (Bank) and appointed bank. The financial structure must satisfy many parties.
We will help you appoint an Escrow Agent (Bank) and reputable bank that has the experience to handle and negotiate the release conditions for complicated cross-border project escrows. The escrow agreement provides clarity and comfort with respect to the financial rights and obligations of all participating parties.