What is a joint check agreement in construction?

Joint checks protect subcontractors and material suppliers from the risk that a general contractor receives payment and fails to pass it through. With a joint check, the check is made out to both the GC and the sub — neither party can cash it without the other's endorsement. This removes the GC as a collection risk for that specific amount.

Joint check agreements need careful drafting. They typically specify which subcontractor, which contract, and which invoices are covered — a vague agreement can leave ambiguity about whether change orders or additional work are included. Owners should also confirm the agreement does not inadvertently create responsibility for the sub's full contract scope if the GC defaults. Construction payment law is highly state-specific. This is general information, not legal advice.