Joint Checks ArticlesRSS feed for this section

The basic definition of a joint check agreement is a contractual agreement between multiple parties whereby one party agrees to or is given permission to make payment jointly to two or more parties. Joint check agreements are most common in the construction industry because so many tiers of parties participate in a project. A joint check agreement is commonly entered into between a general contractor, a subcontractor and a material supplier.

How to Use Joint Check Agreements to Your Benefit

joint check

Joint check agreements are common in the construction industry. In fact, since they are multi-party documents and construction projects are multi-party endeavors, they are almost exclusively used in the construction industry. These documents may be a perfect fit in a particular situation, but they are not as simple or risk-free as they seem. This lesson […]

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Fifth Circuit Upholds Payment Bond Rights

Payment bond rights under your state’s Little Miller Act statute are not easily avoided. Little Miller Act statutes allow subcontractors and lower-tiered parties to make claims against the payment bond that every general contractor must post for public projects. This process guarantees a certain level of protection for subs while ensuring a level of efficiency […]

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Mechanics Liens Can Force A Favorable Joint Check Agreement

Sometimes, the financial situation of certain parties throughout the contracting chain on a construction project can be less than ideal. More likely than not, the owner or even the general contractor are not aware of this situation, which can spell disaster for some parties like suppliers or other subcontractors. Filing a mechanics lien can result […]

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Ultimate Guide To Being A Successful Credit Manager

Credit Manager Success Guide

Every day, credit professionals are challenged to handle sensitive financial situations for businesses. They are trusted to analyze complex situations and to make an educated judgment about how to financially interact with other companies. This is a big job.  It can make drastic impacts on a company; that is, drastically good, or drastically bad. If you are […]

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Managing Financial Risk When Contractor Default Is Expected To Soar

Financial Risk and Eggs in a Basket

Research professor Thomas Schleifer has published a string of op-ed articles at warning those in the construction industry about the financial perils and risks associated with a rebounding economy. In turn, we’ve highlighted these articles and had discussions and Webinars of our own setting forth how to Navigate The Financial Risks of a Rebounding […]

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Joint Check Agreement Mistakes: Recorded Webinar and Conversation Now Available On Demand

Cash Management and Credit Lessons

Joint check agreements are encountered nearly every day by credit managers in the construction and building supply industries. These documents are wildly popular, but they’re also wildly unpredictable and the potential source for costly mistakes. Over the past few years we’ve addressed the issues presented by joint check agreements. See, for example, the Joint Check […]

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Most Dangerous Joint Check Agreement Mistakes Revealed

mechanics lien and bond claim law alerts and changes

This past Wednesday, Nate & I co-hosted a very successful Webinar: The Joint Check Agreement Mistakes That Can Cost You Thousands.  It was very successful, and we had a great discussion about problems you may encounter when dealing with these popular instruments. The slides from the presentation are available on our SlideShare account and viewable […]

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The Joint Check Agreements Resource Everyone Should Have

Joint Check Agreements can be a great tool for your credit department, but because of its complications, it can also be the cause of serious problems. Our recent blog series on joint check agreements went through a variety of scenarios to help you better understand how joint check agreements work, how they should be used […]

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