June 20, 2024


The joint check agreements are very common in the industry of construction. They are mostly the multiparty documents because the projects of construction are also multiparty. These documents are almost exclusively used for the construction industries. The documents look like they are perfect for any situation, but they involve a lot of risks and are very complicated. The documents are exchanged and signed in the industries but the regulations are very loose, and they provide a very little protection. If a party is not careful, the agreements can be burnt easily.

Joint Check Agreement

The joint check agreements are contractual agreements among multiple parties, where the opposite party either agrees to or gives permission for making adjoint payment to the other parties. A joint check agreement includes a subcontractor, a general contractor, and the material supplier. The supplier who has been hired by the subcontractors will want to protect himself against the non-payment. The three parties decide that the payments that will be given by the general contractor will be provided jointly to the material supplier and the subcontractor. These agreements are not created by the statutes. No Federal law or State Law is known to govern the agreements or offer guidelines. The rules of the agreement are present in the agreement.

Getting Signed by Everyone

The joint check agreement should be signed by all the parties. Getting the signature from the parties is a very important step for executing the validity of the joint check agreement. The joint check agreements help in creating an exception to the contractual responsibilities of a party. When the parties enter a joint check agreement, an exception is carved out in comparison to all the general rules that are present in a contract. It is extremely important that all the three parties meet and sign the agreement. Problems may arise if the signature of any one party is missing.

Details that should be there

Certain things should be addressed and included in the joint check agreements. These things include:

  • An introduction that will contain the details which will be provided in exchange for the agreement.
  • The project’s name should be clearly mentioned in the agreement.
  • The parties who are bound by the joint check agreement should also be mentioned. This includes the contractor, the subcontractor, and the material supplier.

These are the important things that should be considered while signing or forming a joint check agreement.