Common use of Use of Joint Checks Clause in Contracts

Use of Joint Checks. If Owner becomes aware or is informed that Design/Builder has not paid a Subcontractor, materialmen, laborer, or Supplier as provided herein, Owner shall have the right, but not the duty, to issue checks and payment then or thereafter otherwise due to Design/Builder naming Design/Builder and any such Subcontractor, materialmen, laborer, or Supplier as joint payees. Before issuing any joint checks hereunder, Owner shall provide five (5) days prior written notice to Design/Builder. Such joint check procedure, if employed by Owner, shall create no rights in favor of any person or entity beyond the right of the named payees to payment of the check and shall not be deemed to commit Owner to repeat the procedure in the future nor to create any contractual or other relationship of any kind between Owner and such person or entity.

Appears in 5 contracts

Samples: Design Build Agreement, Build Agreement, Build Agreement

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