
A key person provision is a widely underused tool in the world of construction contracts.
In construction, the person running your job matters: the project manager who sat in your preconstruction meetings, who understands the phasing, who knows why the MEP coordination sequence was set up the way it was, who has relationships with your team and the owner’s team. That person is not interchangeable. And if they disappear six weeks into the job and get replaced by someone who’s never read the drawings, you have a problem.
This happens all the time. A contractor or consultant sells the A-team—the experienced project manager; the sharp superintendent; the people who won the job—during the proposal and interview. Then, once the contract is signed, those people quietly get moved to a larger project, not out of anything nefarious, but usually out of a necessity. A fire happens on another project and they are needed to put it out. By the time you realize those working on your project aren’t the ones you originally signed on, you’re three months in and the damage is already underway.
Reprinted courtesy of Nate Simon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Simon may be contacted at nate@simonlawky.com