If the subcontractor receives a common cheque valid exclusively for materials, it will confirm and send the cheque to its supplier who will pay it into its account and pay the subcontractor`s material invoice(s) for that part of the project. Subcontractors and others with credit problems are known to falsify a general contractor`s or developer`s signature on a pooled check agreement. You should understand that this is in the industry and it is a good practice to send an email or make a call to the general contractor or developer to confirm that they have indeed signed the pooled check agreement and that they understand their obligations. Many courts, although no Idaho decision, have ruled that after the joint control rule, a check paid jointly to two beneficiaries is considered satisfactory for the amount owed to the lower-level beneficiary. The “Joint Check Rule” is applicable even if the supplier/subcontractor does not actually receive full payment from its subcontractor. In cases where a supplier is in favour of a joint review, but the subcontractor does not make any of the cheque proceeds available to the supplier, the courts have held that by approving the review and handing it over to the subcontractor, the payer has satisfied the recipient`s pledge and borrowing rights. The holder of the gene I have successfully worked for 5 previous jobs does not pay me. There is no work-related problem. I have reached an oral agreement to provide finished carpentry in a renovation of the church. Now I`ve finished the job for a $2,300.00 deal. That`s right. While paying parties want to avoid having a new obligation with a subcontractor or inferior supplier, they like the power that comes with authorizing to issue a common check. This means that there is no standard agreement for joint examinations.

All this confusing chatter about contract law means only one thing: getting everyone to sign the joint check agreement. Joint cheque agreements are not a creature of the law. In other words, there is no national or federal law that specifically regulates joint cheque agreements or offers guidelines. A joint audit agreement protects the equipment supplier from the risk that the subcontractor will not pay it even after the subcontract has been received. The general contractor is protected against the risk that the supplier will not be paid and deposits a mechanical pledge right. They are protected by the fact that they can (and should) (and whether or not they must use a common audit system) provide advance notice of the project. In these difficult economic times, consider whether you should incorporate a pooled check agreement into subcontracts. If you are in a situation with an insolvent subcontractor and without a common control agreement, your choices are not great. In this situation, contractors (and owners) may consider paying directly to beneficiaries at the lower level in order to minimize pledge and borrowing rights. Pooled cheque agreements mainly benefit the lowest level (such as a building material supplier).

The party making the first payment – usually the general contractor or the property owner – gets a slight advantage from these agreements, but the advantage fades compared to the benefit given to the party receiving the payment. Since there is no standard common control agreement, these agreements are subject to the contractual will of the parties. As a result, there are differences from one agreement to another. A big difference between the agreements is that some require the paying party to make a joint check and others only give permission to do so. . . .