Topic Thread

1.  Joint checks and waivers

Posted 8 days ago
​Hi all,
I will be issuing a joint check tomorrow (Friday) to a sub and his supplier. As far as waivers go does anyone have an example of how you would handle this? It has been many years since I have had to deal with joint checks with suppliers
Thank you
Kathy

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Kathleen Shea
Pascack Builders, Inc.
N. Kingstown RI
(401) 398-7291
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2.  RE: Joint checks and waivers

Posted 8 days ago

Good morning Kathleen,

We typically have the subcontractor and his vendor sign a waiver for the full amount of the check.  We have waivers for both the sub and his vendor.  I can forward you a copy, if you'd like.




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Cheryl Wilson
Controller
Sullivan Construction, Inc.
Bedford NH
603-627-63335
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3.  RE: Joint checks and waivers

Posted 8 days ago
Well, in Texas there are four statuatory waivers.

1. Conditional Progress (Partial)  ( the condition to be met is the check clearing the bank)
2. Unconditional Progress (Partial) (the check has already cleared the bank)
3. Conditional Final  ( the condition to be met is the check clearing the bank, and no future payments are expected)
4. Unconditional Final (the check has already cleared the bank, and no future payments are expected)

If  XYZ Subcontractor, Inc. submitted a progress draw of 100,000 and retainage was 10%.   And materials owed to: Material Supplier Inc. was $50,000.00.   I would create three waivers.

1.  Conditional progress payable to XYZ, Inc. for $40,000.00 with XYZ as the signer.
2.  Conditional progress payable to XYZ and Material Supplier Inc. for $50,000 with XYZ as the executor of the waiver.
3.  Conditional progress payable to XYZ and Material Supplier Inc. for $50,000 with Material Supplier, Inc. as the executor of the waiver.

Or sometimes I would replace step 3 with an unconditional progress waiver from the supplier, post payment.
This would be the case if notices were sent.

Good luck!

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Jordan Anderson, CCIFP, CRIS
Controller
Holchemont, LTD
McAllen TX
(956) 686-2901
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4.  RE: Joint checks and waivers

Posted 8 days ago

We generally have the subcontractor come in and endorse the check so we can then send it directly to the supplier.  This way we are certain the supplier gets paid.  

 

Dianne Jackson

CFO

 

CMSWillowbrook, Inc.

3108 S. 9th Street

Chickasha, OK  73018

405-224-1554 tel

405-896-5812 fax

dianne.jackson@cmswillowbrook.com

www.CMSWillowbrook.com

 

 



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5.  RE: Joint checks and waivers

Posted 8 days ago
We require our Subcontractors collect and submit waivers from 2nd-tier Subs/vendors so when issuing Joint Checks it is no different. We would produce one waiver issued to our Sub, allowing them to sign off on the fact that the money was paid to them on the contract. A second waiver would be produced that the joint-check recipient (2nd-tier Subs/vendor) would execute verifying payment.

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Jason Lovett
Regional Controller
The Christman Company
Knoxville TN
(865) 243-3130
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6.  RE: Joint checks and waivers

Posted 8 days ago
Typically you would request a conditonal release from the supplier and cut the joint check for that amount, the balance would go to the sub directly.  It would be a good idea, if you haven't already, to request a unconditional release through the month prior from the supplier to ensure that was the only amount owed.  After the check clears you can request an unconditional release from both sub and supplier.

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Paul Centrone
Accounting Manger
Murray Company
Rancho Dominguez CA
(310) 637-1500
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