Insurance & LiensQuestion 85 of 1605
Which statement about a "joint check agreement" is correct?
a.It is a tool owners and GCs use to ensure subcontractors and suppliers are paid directly
b.It requires CSLB approval
c.It eliminates the need for a preliminary notice
d.It applies only to public works projects
Explanation
A joint check agreement requires checks to be made payable jointly to the GC and subcontractor or supplier. This ensures the sub/supplier actually receives payment and reduces lien exposure.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)