National Roofing Legal Resource Center

Contract provision addresses payment by joint check

Sometimes general contractors wish to reserve the right to issue joint checks to subcontractors and their suppliers. With this contract provision, a general contractor can only issue a joint check when the supplier is entitled to payment and the general contractor has reason to believe the subcontractor is not paying its suppliers properly. This provision also requires the roofing contractor receive written notice before the general contractor issues a joint check, which should give the roofing contractor an opportunity to contest any such joint check.

Payment by joint check: If Subcontractor has not timely paid a supplier that has furnished material on the project or if General Contractor has good reason to believe that Subcontractor does not have the ability to pay a supplier of Subcontractor for monies properly earned by the supplier as a result of Subcontractor not making timely payment to another supplier that has supplied materials on the project, General Contractor may make payment to Subcontractor and the affected supplier by a joint check, provided that General Contractor shall first provide written notice to Subcontractor of its intention and grounds to issue a joint check at least three (3) business days prior to issuance of the check. Joint checks shall be tendered to Subcontractor for Subcontractor to distribute to its supplier.


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