Legal Question in Construction Law in Indiana
Vendor payments
if you have a contract with a vendor and you pay some of his suppliers direct for him. How do you account for this. Should it be posted against the contract and his 1099 should show the total amount? or does it really matter?
1 Answer from Attorneys
Re: Vendor payments
At the least, you should always make such payments in the form of a joint check or have the vendor acknowledge in writing that the payment is being made with his permission. Naturally this should count against whatever contract amount you owe him. It is still regarded as payment to the vendor so no other actions would need to be taken.
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