Hiring Smart: Leveraging Springing Deposit Account Control Agreements for IT Contractor Efficiency

Much like banks offer a checking account with a “springing” feature, Bench Direct acts like your preferred staffing firm to streamline the hiring of IT contractors. For budget restricted corporations and federal governments, one of the most complex, tedious and time-consuming aspects of onboarding an IT contractor is sourcing and then matching the candidate’s skillset to the open position. The process of locating, verifying and contracting requires a lot of effort, time and money. The agreement that simplifies the bank’s ability to verify that only authorized parties can initiate withdrawals from an account. As explained in this article: “A springing deposit account control agreement, as the name suggests, is an agreement that “springs” into effect when certain conditions occur. The agreement is structured so it goes into effect upon the accomplishment of a future objective of which the other parties are unaware. A common example is a security agreement for a loan that becomes effective upon a default by the borrower. When it becomes effective, the lender has full control over the funds in the account and the authority to disburse all the funds but those subject to dispute.”

Although not specifically required by law, many companies will ask for a background check and references before initiating a contract. A springing deposit account control agreement acts to reduce risk to both the bank with the account as well as the debtor, or the IT contractor. By having a streamlined screening process for IT contractors, not only the company but also the contractor will benefit from a vetted contract. In both legal matters such as the above referenced springing deposit account control agreement and at Bench Direct, being able to offer clear, concise, direct information to offer the best solution and mitigate risk on both sides, is essential.

However, even when simplified, the process of vetting an IT contractor includes more than just issuing a single-point-of-contact to field questions, concerns and a variety of other issues. Like that of a springing deposit account control agreement, you’ll also find benefits of minimizing complexity and maximizing efficiency. For example, the majority of states require for the accuracy and reliability of services, that contractors be appropriately qualified. This requires that contractors satisfy every job requirement (in the description). For example, if your company is focused on the Installation of ServiceNow, and you find a contractor that has installed this software at previous organizations but now offers their service as a business seller, is it safe to assume the contractor is accurate? By streamlining the process of onboarding IT contractors, you can reduce the guesswork as to what may be missing to make the hire a success.

Organizations that contract with IT professionals minimize risk, maintain efficiencies, and can operate without losing sight of past efforts, when the process of vetting an IT contractor has an “if this, then that” functionality. With both banks and legal agreements, this is where the springing deposit account control agreement offers a practical function for security. For staffing companies like Bench Direct, we offer our clients a simple, straightforward process to secure contractor services by being the person who does the work for you. We certify all contractors and their ability to complete the job as directed to maximize value to your organization.