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Details on Joint Check agreements

GeorgiaBond ClaimsJoint Checks

We are a material supplier, the sub sub did not pay us even though they signed a lien waiver to the Sub Contractor. I filed a claim with the GC Bond as it is a public job. Now the Sub COntractor wants to enter into a Joint Check agreement with me to get us paid

1 reply

Apr 21, 2020
Using joint checks is a common way to make ensure that subcontractors pay their sub-subcontractors and suppliers. When joint checks are used, the check must be endorsed by both the subcontractor and whoever else is on the check in order for payment to be released. So, practically, the sub can't just take off with all of the funds they receive for themselves, their sub-subs, and their vendors. Joint checks can be a useful tool, but there are some important landmines to avoid as well - like getting burned by the joint check rule or fraud. Levelset has put out a lot of content on joint checks, so these articles below should be able to provide a lot more context on how they work: - What Is A Joint Check Agreement? -  Joint Check Agreements: Rule Can Limit Suppliers Claim For Further Payment - Joint Check Agreement Guide - Collection of Levelset Joint Check Posts

A customer offering joint checks is a good sign, but it's not time to let the guard down

With all of that being said - I'm not sure it'd be wise to release a bond claim or waive bond claim rights simply because there's a joint check agreement in hand. This is particularly true considering there have already been payment issues on the job. But, a customer agreeing to use joint checks is a great sign that your payment claim is being taken seriously, at the very least. And, it may be a sign that the customer is being slow paid on the job too. What's more - keep in mind that the timeframe for enforcing (filing suit) on a Georgia bond claim is up to 1 year after the entire project is complete. So, while payment might be urgent, keep in mind that the decision on how to proceed with a filed bond claim doesn't have to be made in haste. For more background on Georgia bond claims: Georgia Bond Claim Guide and FAQs.
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