FF&E Procurement Accounts

FF&E / OS&E Procurement Accounts are third-party managed payment accounts used to manage funds set aside for the procurement of furniture, fixtures, equipment and operating supplies.

Instead of procurement funds being held and paid out by the purchaser, project manager or advisor, money is paid into an independent managed account. Payments are then made to suppliers in line with agreed procurement schedules and approval rules.

These accounts are designed to support large or complex procurement programmes where items are ordered, delivered and paid for over time.

FF&E / OS&E Procurement Accounts are suitable for developers, owners, operators and project teams managing large fit-outs or operational set-ups.

They are commonly used in hospitality, residential, commercial, marine and aviation projects, where procurement involves multiple suppliers and significant aggregate spend.

Advisors, interior designers and procurement managers often support their use where neutrality, control and auditability are important.

These accounts are typically used once budgets and procurement plans have been agreed, but before orders are placed or deliveries begin.

They are used throughout the procurement phase, covering deposits, staged payments and final balances as items are manufactured, delivered and installed.

They are particularly useful where procurement runs alongside construction or refit works and needs to be tightly controlled.

Unlike a normal corporate or project bank account, an FF&E / OS&E Procurement Account is operated by an independent third party.

The purchaser, designer or project team does not unilaterally control payments. Funds are paid out only when the agreed approval conditions are met.

This can reduce procurement risk, improve transparency and avoid disputes about whether payments were authorised or premature.

FF&E and OS&E procurement often involves long lead times, bespoke items and suppliers in multiple jurisdictions.

Paying deposits too early can expose buyers to risk. Delaying payment can disrupt manufacturing or delivery schedules. Holding procurement funds directly can also create governance and reconciliation issues as most interior designers / procurement agents are not regulated to hold client funds or carry out payment services.

FF&E / OS&E Procurement Accounts address these challenges by providing a neutral structure where funds are safeguarded and paid out strictly in line with agreed procurement milestones.

The primary benefit of an FF&E / OS&E Procurement Account is controlled and transparent management of procurement payments.

Funds are protected and released only when agreed conditions are met, supporting orderly procurement without unnecessary risk.

Benefits for the paying party

For owners and purchasers, these accounts provide confidence that procurement funds are used only for agreed items and suppliers.

Spending limits, staged payments and approval thresholds can be built in, reducing the risk of overspend or unauthorised orders.

Benefits for suppliers & manufacturers

For suppliers and manufacturers, these accounts provide reassurance that funds are available and committed.

Once the agreed conditions are met, payment can be made promptly without relying on ad hoc approvals or internal delays.

Benefits for advisors and project teams

For designers, procurement managers and advisors, these accounts provide a clear and defensible payment process.

They reduce the need to hold client money or manage complex payment flows directly and provide a clear audit trail across the procurement programme.

FF&E / OS&E Procurement Accounts can be structured in different ways depending on the project.

Some accounts are used to manage all FF&E and OS&E spend from a single pool of funds. Others are structured around categories, phases or suppliers, with separate approval rules for each.

Accounts may support deposits, interim payments and final balances, all within a single managed framework.

Yes. FF&E / OS&E Procurement Accounts are commonly tailored to reflect the procurement strategy.

Approval matrices, payment milestones and reporting can be adjusted to align with manufacturing, delivery and installation schedules.

They can also be combined with escrow arrangements, for example where funds for a specific item need to be held until delivery, while the rest of the procurement spend is paid out over time.

In practice, all TPMA's work by separating payment from approvals rules.

These approvals may be given in advance (say, where a transaction is taking place, or a dispute has been settled, and a known amount of money needs to be paid to identified parties), or on an ad-hoc basis (where a procurement agent, house manager, interior designer, lawyer or trusted advisor is given permission to spend the paying party's funds.

A specific bank account is opened for each payment scenario, and the funds are held there until (a) a payment request is made; and (b) the approvals conditions are satisfied. Once those two conditions have been met, we carry out our compliance checks and then make the payment(s).

If those conditions are not met, the funds remain held in accordance with the account documents.

We follow the agreed approvals matrix and we do not exercise any discretion beyond ensuring that the approvals conditions have been satisfied.

Only parties authorised under the account documents can make a payment request. This is agreed at the outset and documented clearly, together with any specific approvals that might be needed, say, for payments in excess of a specific threshold, or for payments to certain beneficiaries.

Instructions are usually tied to specific documents, such as a purchase order, pro-forma invoice, invoice, payment certificate, settlement agreement, sale and purchase agreement, court order or other legal document.

We check that the instruction matches the agreed conditions before acting.

This approach ensures that payments are controlled, predictable and not dependent on informal requests or unilateral decisions by one party.

1. Funds are paid into the TPMA.
2. Payment requests are made and approvals requirements are checked.
3. Payments are made.
4. The balance remains in the account.

This simple structure is what makes TPMA's reliable across many different use cases.

A Third-Party Managed Account is a three-way scenario between (a) the paying/funding party; (b) anyone who is entitled to make payment requests or authorise them; and (c) us, as the paying agent.

We do not provide pooled TPMA's for law firms, estate agents or other professional advisors - instead, a new account is opened for each individual client or matter - this ensures that every client's funds are in their own specific account and that we are able to carry out our required screening, monitoring and ongoing compliance requirements in respect of every individual matter.

When a professional advisor wishes to open a TPMA for their client to deposit funds with us, we onboard the paying party (the client), carry out our mandatory compliance checks, agree the account mechanics (pricing, who can make payment requests, and who can authorise them) and then open the account and provide the unique account details.

Timing depends on the complexity of the parties and the arrangement.

For straightforward structures, account opening can usually be completed within a short period (even on the same day) once information is provided.

Delays are usually caused by missing onboarding information rather than the account opening process itself.

Standard onboarding checks are required.

This includes confirming identity, ownership and control of any entities involved, and the source of funds.

We also need a clear description of the purpose of the account and those parties who will be authorised to make payment requests or authorise payment releases.

In order to open an escrow account, what is typically required is:

• Details of the parties
• Identification information
• Ownership and control details
• Source of funds information
• Summary of the underlying transactions or obligations, and a copy of the contract/agreements
• Agreed payment request and authorisation conditions

If we require any other information, we'll let you know when we give you your quote.

Accounts are funded by the party providing the funds under the agreement. Each arrangement has a uniquely addressable bank account with its own account number and sort code combination, and we are able to accept BACS/CHAPS/Faster Payments and international SWIFT payments.

Funds may be paid in a single amount or in stages, depending on the arrangement.

Once paid in, funds are ring-fenced for the agreed purpose.

We are not able to accept cryptocurrencies, cheques or cash.

Funds are released only when the agreed conditions are met.

The TPMA account opening form specifies what evidence is required and who may make payment requests or authorise releases.

When conditions are satisfied, funds are released promptly and in accordance with the agreement.

If instructions are disputed or unclear, we will not release the funds without the paying party's consent.

Instead, the funds remain held safely in the escrow account while we seek the paying party's authorisation to make the payment.

This approach protects all parties. It ensures that money is not released prematurely and that funds remain available once the position is resolved.

We hold the balance of a TPMA on trust for the paying party. What that means is that if the paying party becomes insolvent, their administrators are likely to make a claim on the contents of the TPMA as constituting funds that belong to that paying party.

What happens if DOS & Co. becomes insolvent?

All TPMA funds are segregated (kept separate from our own funds), safeguarded (protected by law from our own creditors) and kept liquid and unencumbered at the Bank of England. In the event of our insolvency, we have set aside regulatory capital that will be used by our administrators to 'unwind' our affairs - this will usually involve returning the funds directly to the paying party.

Funds paid into an escrow account are held separately from the money of any other parties and separately from our own funds. They are not mixed with operational accounts.

All of our TPMA funds are held liquid and unencumbered at the Bank of England. This means that there is no counterparty risk (the bank does not lend out funds, so a 'run on the bank' is not possible).

The TPMA account is set up specifically for the purposes agreed in the TPMA Account Opening agreement. Funds can only be used in line with that agreement and cannot be applied for any other purpose.

We are regulated by the Financial Conduct Authority for the provision of payment services. This means we are required to meet regulatory standards around governance, systems, controls and the handling of client funds.

Where TPMA arrangements involve regulated payment activity, those activities are carried out within that regulatory framework.

In practical terms, this combination of regulation and contract provides structure and oversight, while still allowing arrangements to be tailored to the needs of a specific matter or project.

Third-Party Managed Payments are designed to follow agreed payment rules, not to make judgments or resolve disputes.

We do not decide whether a payment should be made beyond checking that the agreed approval conditions have been satisfied.

We do not interpret contracts, assess performance, verify the quality of goods or services, or exercise discretion over how funds are spent.

If approval conditions are not met, or if instructions fall outside the agreed rules, payments are not made and the funds remain held in accordance with the account documents.

Pricing for Third-Party Managed Payments is usually based on the complexity of the arrangement and the level of activity on the account.

This typically covers account set-up, safeguarding of funds, ongoing operation of the account, processing of payment requests, compliance checks and reporting. Where payment volumes are higher or approval structures are more complex, pricing reflects the additional administration involved.

All pricing is agreed in advance, so parties have clarity on costs before funds are paid into the account.

If a payment request does not meet the agreed approval conditions, the payment is not made. The funds remain held in the account in accordance with the account documents.

If there is uncertainty, dispute or missing information, we pause processing and seek clarification from the paying party. We do not release funds unless the agreed conditions are satisfied.

This approach ensures that errors, informal requests or unilateral instructions do not result in unintended payments.

dospay provides a specialist, escrow-first approach to managing payments neutrally and transparently. We are structured to hold and move funds strictly in accordance with agreed rules, without exercising discretion or commercial judgment.

Our digital platform provides visibility, auditability and control over payment flows, while keeping funds segregated and protected. This makes it easier for parties and advisors to manage complex payment arrangements with confidence.

Using dospay allows parties to separate payment mechanics from decision-making, reduce operational risk and avoid the need for one party or advisor to hold and control funds directly.