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Section 5: Direct Payment Authorization and Cooperation

ICA/AOB contract section 5 — copy into your client agreement.

Owner authorizes and directs the insurance carrier and any mortgage company to include Contractor as a payee and issue payment directly to Contractor for all amounts attributable to Contractor's authorized scope of work.

  • Owner shall notify Contractor within three (3) business days of receipt of proceeds
  • Owner shall endorse and remit payment to Contractor within five (5) business days
  • Owner shall fully cooperate with any mortgage company endorsement process
  • Owner shall not use funds assigned to Contractor for any other purpose

Failure to remit proceeds constitutes a material breach and may result in suspension of work and pursuit of all available remedies.