Replacing a Contractor’s Key Employees During a Project and the Penalties for Doing So: How to Reduce the Risks?
Some public-sector entities that award construction contracts are now imposing penalties of up to $100,000 in cases where key employees designated in a contractor’s bid (e.g. project manager, superintendent) are replaced without authorization while the project is ongoing. Being bound by such an obligation can have serious, even fatal, consequences for contractors in a highly competitive market where labour is increasingly mobile and projects can go on for long periods of time.