Document background
The Joint Check Agreement In (Construction) is a specialized contract used in Canadian construction projects when there are concerns about payment security or when managing complex supply chain relationships. This agreement is particularly valuable when suppliers require additional payment security, when subcontractors have limited credit history, or in projects with significant material costs. The document establishes a mechanism where payments are made via checks payable to both the subcontractor and their supplier jointly, ensuring that material suppliers receive payment while maintaining the traditional contractual hierarchy. It includes provisions compliant with provincial Construction Acts, federal prompt payment legislation, and banking regulations, while addressing lien rights and payment procedures. The agreement is commonly used across various construction sectors, from commercial to residential projects, and provides protection for all parties involved in the payment chain.
