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Joint Check Agreements

kalford October 21, 2015

Joint Check Agreements

A Joint Check Agreement is an agreement between multiple parties, allowing one party to make payment through a check issued to two or more payees. General Contractors like joint check agreements because they help to ensure the subcontractor will pay its suppliers with the appropriate funds (i.e. avoid robbing Peter to pay Paul). Material Suppliers and other parties contracted with subcontractors like joint check agreements for added security on a potentially risky credit situation (i.e. perhaps there is a lack of solid credit info on the GC) Joint Check Agreements are an excellent risk mitigation tool, but they aren't without flaws - check out this infographic for details!

 

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