Contracts & ExecutionQuestion 770 of 1605
When a contract funds are placed in an approved joint control, the joint control company's role is to:
a.Disburse funds to the contractor as work is verified complete
b.Perform the construction work
c.Sell the property
d.Issue the building permit
Explanation
A joint control (funding control) company holds the project funds and releases them to the contractor only as work is verified, which is why standard payment limits may be relaxed when one is used.
Law Reference: B&P §7159Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)