If each of the three parties to a common control agreement does not sign the agreement, it could be attacked. The only party that could possibly be awarded for not having signed the agreement is the lowest level that receives the benefits of the agreement (i.e. the debtor of the original contract), and this because the jurisprudence of many States suggests that the party receiving a commitment is not required to sign the agreement to benefit from the benefit. Nevertheless, why roll the dice on this one? If you have a joint audit agreement, you can also sign it. It is less common to get signatures for common control agreements than this more disturbing common control fraud: the falsification of a cheque confirmation. To simplify, a common control is a two- or more-party control. A joint audit agreement is a contractual agreement whereby a party accepts payment in the form of a common control (or authorizes the whole). Typically, a joint audit agreement is reached between a general contractor, a subcontractor and a hardware supplier. The supplier hired by the subcontractor wants to protect against non-payment. All three parties agree that all payments made by the general contractor for work on the supplier`s equipment will be charged jointly to the subcontractor and the equipment supplier. Common checks are exactly that: a check instrument that was written to your company and to someone else.

When everything goes well with a project, there are usually no problems. These cheques enter, they are signed by the parties and deposited by a party in accordance with an agreement. However, for many reasons, a project can reach a point where the parties terminate their cooperation with each other or when a party feels entitled to receive appeals or payments that are contentious. These situations are a challenge when common controls are at stake, as a party will probably refuse to sign. As there is no standard joint check-check, you should check the language as part of the specific joint audit agreement to see what rules apply to your situation. Yes, we know how boring and complex it is. Subcontractors and others with credit problems are known to get the signature of a general contractor or developer for a joint audit agreement. You have to understand that this is happening in the industry and it is a good practice to send an email or call the general contractor or developer to confirm that they have actually signed the joint audit agreement and understand their commitments.