JOINT CHECK AGREEMENT FORM JOINT CHECK AGREEMENT FORM 2025

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Heres an example scenario. Lets say youre owed $80,000 for materials that you furnished to a subcontractor three months ago. You have yet to receive payment and may need to move forward with filing a mechanics lien. To avoid this and offer some payment, the general contractor writes up a joint check for $65,000.
Under California law, a contractor can require a down payment of $1,000 or 10 percent of the total cost, excluding finance charges, whichever is less. For swimming pool construction, the down payment should not exceed $200 or 2 percent of the total cost, excluding finance charges, whichever is less.
A joint check is a payment made to both the contractor and a subcontractor, with both parties required to sign the check in order to cash it. This practice can help resolve payment disputes and protect against potential legal claims like mechanics liens or lawsuits.
Joint checks in general When joint checks are involved, two payees must endorse the check in order for that check to be deposited. For example: a contractor may issue a joint check that their subcontractor and their subcontractors supplier must both endorse before payment can be released.
1 Under the California Rule, the contractors issuance of a joint check discharges both the contractor and its surety from liability to lower tier contractors/ suppliers.
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Writing a Joint Check If it needs to be written to two or more companies, be sure to write out the word and. You may also want to write the words jointly or as joint payees to ensure that bankers notice that the check goes to two parties instead of just one.
A joint check is a check made out to two parties (i.e., the prime contractor and subcontractor, or subcontractor and second-tier subcontractor, etc.) that can be cashed when signed by both parties. Typically, provisions for joint checks are agreed to in the underlying construction contract.

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