Use of Joint Checks. If Owner becomes informed that Design/Builder has not paid a Subcontractor, materialman, 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, materialman, laborer, or Supplier as joint payees. 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.
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.
Use of Joint Checks. A Contractor must seek prior written approval from Owner for the use of joint checks with DBE firms. By a joint check, Owner means a check issued by a contractor to a DBE subcontractor and to a material supplier or another third party for items or services to be incorporated into a project. The primary concern with allowing joint checks is that this practice may make it difficult to determine whether the DBE is performing a commercially useful function. DBE firms performing under a joint check agreement must comply with the commercially useful function requirements. Owner intends to put into place a series of safeguards listed below to prevent the use of joint checks in ways that would result in the denial of DBE credit for items obtained from supplier or that would compromise the independence of a DBE firm. Owner will monitor the use of joint checks closely to ensure that the funds used to pay the supplier, in fact, come from the DBE's own funds and verify that all other requirements of 26.55(c)(1) are satisfied. Owner will authorize the use of joint checks based upon guidance provided by XXX. Owner will use the following criteria to approve joint check requests at all sub-tier levels:
Use of Joint Checks. If City becomes informed that Design-Builder has not paid a Sub-Consultant, Subcontractor, materialman, laborer or Supplier as provided herein, City 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 Sub-Consultant, Subcontractor, materialman, laborer or Supplier as joint payees. Such joint check procedure, if employed by City, 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 City to repeat the procedure in the future nor to create any contractual or other relationship of any kind between City and such person or entity.
Use of Joint Checks. A joint check may be used between the Contractor or lower-tier subcontractor and a DBE subcontractor purchasing materials from a material supplier if the contractor obtains prior approval from the LPA for the proposed use of joint check upon submittal of the LAPM 9-K: DLA Disadvantaged Business Enterprises (DBE) Joint Check Agreement Request form. To use a joint check, the following conditions must be met: • All parties, including the Contractor, must agree to the use of a joint check • Entity issuing the joint check acts solely to guarantee payment • DBE must release the check to the material supplier • LPA must authorize the request before implementation • Any party to the agreement must provide requested documentation within 10 days of the LPA's request for the documentation • Agreement to use a joint check must be short-term, not to exceed 1 year, allowing sufficient time needed to establish or increase a credit line with the material supplier A request for a joint check agreement may be initiated by any party. If a joint check is used, the DBE remains responsible for all elements of 49 CFR 26.55(c)(1). Failure to comply with the above requirements disqualifies DBE participation and results in no credit and no payment to the Contractor for DBE participation. A joint check may not be used between the Contractor or subcontractor and a DBE regular dealer, bulk material supplier, manufacturer, wholesaler, broker, trucker, packager, manufacturer’s representative, or other persons who arrange or expedite transactions.
