Joint checks are back in favor, especially when owners are worried about lien exposure, shaky subcontractors, or suppliers who want comfort before shipping material. They sound simple: one check, two payees, problem solved. In reality, however, joint checks often do more than parties expect—and sometimes more than they intend.
For owners
Joint checks can be an effective risk-management tool, particularly in Maine where lien waiver practices are inconsistent and often informal. But ad hoc joint-check arrangements can quietly shift responsibility. Once an owner starts coordinating invoices or resolving downstream payment disputes, they risk arguments that they’ve assumed direct payment obligations. The fix is discipline: treat joint checks as a defined payment procedure, not a workaround. Spell out when they apply, what backup is required, and what lien waivers must accompany each payment. Or clarify intent and effect contemporaneously when they are issued.
For general contractors (GCs) and construction managers (CMs)
Joint checks can keep projects moving and suppliers shipping—but they can also create accounting headaches and payment delays if a joint payee refuses to endorse. The biggest risk is credit confusion. If joint checks aren’t tied to specific invoices and clearly reflected on the schedule of values, disputes tend to follow. GCs should insist that joint checks come with conditional waivers limited to the amount paid, not broad releases that reach beyond the check.
Residential projects (and the double-payment defense)
In Maine residential work, owners often benefit from a “double-payment” defense—meaning a subcontractor or supplier’s lien rights may be limited to the extent the owner has already paid the GC for that work. That makes joint checks less about legal necessity and more about preventing chaos. Used carefully, they can preserve relationships; used casually, they can blur roles and expectations.
Practice tips
Owners: If you issue joint checks, document the process—and resist the urge to manage subcontractor payment disputes.
GCs/CMs: Treat every joint check like a mini-change to your payment flow and paper it accordingly.
Bernstein Shur’s Construction Group helps developers, contractors, and construction professionals manage risk and keep projects on track at every stage of the project lifecycle. The group provides sophisticated legal solutions spanning contract negotiation, project administration, dispute avoidance, and litigation, drawing on deep experience in the construction industry. Conor Shankman is a construction and litigation attorney who advises owners, developers, and contractors from initial planning through dispute resolution, combining clear communication and practical solutions to protect clients’ interests. He can be reached at cshankman@bernsteinshur.com.