Joint check agreement
A joint check agreement is a three-party agreement in which the general contractor (or owner) agrees to pay a subcontractor's supplier through checks made payable to both the subcontractor and the supplier. Neither can cash the check without the other's endorsement.
Updated November 9, 2026 · 1 min read
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Why it matters
A supplier that doesn't get paid can often file a mechanics lien or a payment bond claim, even though the general contractor already paid the sub. Paying by joint check makes sure the material money reaches the supplier, so the general contractor doesn't pay for the same lumber twice. Suppliers ask for one when a sub's credit is thin.
What it should spell out
- The project, the subcontract and the supplier's account it covers.
- Whether joint checks cover all of the supplier's invoices or only some.
- Who endorses first and how fast the supplier passes on the sub's share.
- Whether the supplier signs a lien waiver for each amount it receives.
- What happens if the sub disputes an invoice or leaves the job.
An example
A framing sub buys lumber on credit. The yard asks for a joint check agreement before it delivers. Each month the general contractor writes one check to the sub and the yard together. Both endorse it, and the yard deposits it, keeps its invoice amount and passes the rest to the sub.
All three parties sign it. In SignMaster you'd send it as one envelope with a signing order, so the supplier and sub sign before the general contractor countersigns.
General information, not legal advice
Joint check agreements can limit a supplier's lien and bond rights. Read the waiver wording before you sign one.