Joint checks: Pros and cons.(payments to contractors, subcontractors and suppliers)(Brief Article)

Payment approach may speed completion of project, but owners must understand risks

When someone asks that a joint check be issued on a construction project, it is fair to assume there is a problem. Use of a joint check can either contribute to a solution or exacerbate a problem.

Requests for joint checks typically arise in one of two contexts. First, a subcontractor may request that an owner issue joint checks to the general contractor and to the subcontractor, or a supplier may request that a general contractor issue joint checks to the subcontractor and to the supplier. This article will use the scenario of an owner issuing a joint check to its general contractor and subcontractor, while recognizing that the principles also apply when the joint check is issued by the general contractor.

The owner's dilemma

An …