Joint Check Agreement Forms = WIN-WIN-WIN!
The versatility of these joint check agreement forms can't be beat! They can be used on any project $1 to $1,000,000+++++.
Most states, if not all, do *not* mandate anything about these forms, not even their existence - they were designed simply to help the General/Direct, the Sub, and the Supplier to all do successful, profitable business together.
Here's why the form is great for all of the involved parties…
"This economy has really taken a toll on us. Our clients that have been excellent payers have grown to poor payers. The Joint Check Agreement form we got here has helped us get paid. On top of that the purchase of the form was easy and affordable.
Our experience with TheContractorsGroup has impressed us in how efficient the service is and how much we've benefited so thank you for assisting our business."
The Fab Shop, Inc.
North Highlands, CA
- You might have a Subcontractor that you'd really like to hire for a project but that Subcontractor doesn't stock material or purchase material 'up front' therefore he doesn't have the material needed to do your project for you
- Or maybe the Sub is a small company and you really want to hire him but the project calls for more material than he can afford to float
- Or maybe suddenly a bunch of change orders come up that stretch your Subcontractor beyond his financial limits - but the work *has* to get done.
This form allows you to pay your Subcontractor with a check made out to both the Subcontractor *and* the Supplier.
You get to hire the Subcontractor you want to use and in full comfort knowing that the Sub will pay the Supplier for the materials throughout the project - even if for no other reason than because the check is written to both parties.
* A special note for General/Direct Contractors: If there's a Lender on the project you're working on you can do the same thing with them, just in a kind of reverse order if you will.
Ask the Lender to make the checks joint if they're currently making them out to your customer. To correlate it, in this case you the GC/DC are the Sub, the Sub is the Supplier, and the Lender is the General/Direct Contractor.
So the checks that the Lender issues would be made out to you and your customer. Your customer can't get a check from the Lender for your work performed without your name being on it too and therefore you're right there to collect on your invoice when the check is processed.
So by being willing to work with a joint check agreement arrangement…You WIN!
You can be sure that you'll get paid, and you can be sure that your Sub's supplier(s) get paid.
And on top of that you get to hire the guy you want *and* do so with no risk of liens from supply houses - even a small guy that you like but who might be precariously balanced on a financial ledge due to slow work is now a viable option for your project!
And even more on top of that ;o) you'll be able to hire better Subs that cost a bit more but in the end save you money because of their efficiency and your profits will grow while also helping the Subs and Suppliers to grow.
- Maybe you're a 'small-guy' who can't afford to stock any material and instead you get your materials 'by-the-project' but you can't afford the amount of material that you need all at once
- Or maybe you prefer to not stock material (financial and/or storage issues being two things I can think of that would make one prefer to not stock; those are actually two of the main reasons we didn't stock) ;o)
- Or maybe it's a project size that you handle fine on a normal basis but suddenly out of the blue come a bunch of change orders requiring extra material that you can't afford to pay for upfront
This form is a life/business-saver when you can't afford to purchase your material upfront.
As long as your Supplier is willing to do it this is an excellent way to grow your business, gradually taking on more (and even bigger) jobs.
Some Subs often express concern that this will let the General Contractor know what their markup is on their material.
Don't let that concern stop you from doing this because when you submit the lien waiver/release forms from your supplier(s) your customer will know right then how much you paid for the material and possibly figure out what your markup was on it.
During the years I was a contractor there was never a comment made by the General Contractor regarding our material markup.
Anyhow the point being that your customer *is* going to know those numbers so don't let that concern hold you back from exercising the options (joint check agreements for example) that can help you to grow (or even just keep it steady if that's what you're looking for).
Guess what that means? … *YOU WIN* and
you're also contributing to the win that your GC/DC and your Supplier are experiencing.
These agreements are opportunities for you to quickly grow your business and the amount of material you turn over.
Offer this to a select number of your contractor customers and it'll allow those contractors to bid larger jobs which brings that greater material turn over for you.
You know you're getting paid because it's a joint check.
And if all else fails and the General/Direct skips with the payment, you haven't given up any lien rights by using the form; you still have 100% of those rights.
So, when used wisely this joint check agreement form can mean that *YOU WIN* and you're contributing to helping your contractor customer and maybe even his
customer to grow their own businesses - another win.
It's also great, basically free, advertising.
See? Everybody wins! (I love friendly yet helpful competition!)
Regardless of whether or not there's a joint check agreement in place you *MUST* still require lien waiver/release forms for proof of payment as well as for protection from fraudulent liens.PPS:
If you want to use a joint check arrangement on your project - make sure it's in your contract or you can't enforce it.Click the "Add to Cart" button above and in less than 5 minutes you can have this form downloaded, filled in, printed, and ready to go!
Contents of the Package
The package contains two copies of the form, one is PDF and the other is a WORD document.
PDF documents work on every computer as long as the free Reader software is installed. I can show you how to get to, and download, it if you'd like. They're also as good as, if not better than, WORD and EXCEL documents. :o)
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