Do you send an unconditional progress release to the subcontractor with amount they are being paid *including* the amount being paid to the supplier OR do you send the unconditional progress release to the subcontractor showing only the amount that they are being paid directly and ask for an unconditional progress release from their supplier once the supplier receives the joint check? For example: Bob's Construction is to be paid $10,000. He has a CP Release from the Supplier for $7,000. Bob's Construction will be paid $3,000 and his Supplier will be paid $7,000. Do we send Bob's Construction an unconditional progress release for $3,000 and request that his Supplier send their unconditional progress release once they receive their joint check? OR Do we send Bob's Construction an unconditional progress release for the $10,000 that will be paid to him and his Supplier?
Because your contract with Bob is for the full amount, the unconditional release would be for the full amount from Bob should be for the full amount. But assuming that the supplier provided preliminary notice, you would also want an unconditional release from them in the amount they are paid. This is because Bob would have lien rights with respect to the total amount and the supplier would have lien rights with respect to the amount for their materials only.