Monday, March 10, 2014

Joint Checks to Ensure Subcontractor Payment

Subcontractors and suppliers on public works projects that have not been paid by the contractor may be able to file a claim against Retainage held by the owner (depending on the state), or file a claim against the Payment Bond provided to the owner by the contractor.

Eugene J. Heady
Joint checks:  Another strategy often used when a subcontractor has not been paid is for an owner to issue a joint check to both the contractor and subcontractor.

Article:  Atlanta Attorney Eugene J. Heady (Smith Currie & Hancock) has written an article entitled "Key Elements to an Effective Joint Check Agreement."  While the article is primarily focused on a contractor issuing a joint check to a subcontractor and supplier, many of the concepts in Mr. Heady's article apply for a public agency issuing a joint check to the contractor and subcontractor.
Mike Purdy's Public Contracting Blog
© 2014 by Michael E. Purdy Associates, LLC

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