Replacement of Key Person

NEC 4, PSC Clause 21.1 and ECC Clause 24.1 both allow for the replacement of a key person if the person originally named cannot undertake the role.

What dictates when a key person needs to be “replaced”? I understand that if a key person dies or is taken off the project and the intention is that they will not return, then they should be replaced. Likewise if someone is unavailable for a prolonged period of time then a replacement would be sensible.

However, would you expect this provision to be used when a key person is merely on a period of annual leave, for say a couple of weeks? Especially where it is possible for say a PM to delegate his powers under the contract to another person on the project for that period?

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In a word, no.

I would only expect key people to be replaced where they are no longer able to act - i.e. they will no longer be available to the project. Going on holiday for a couple of weeks is normal practice, and shouldn’t be an issue. Beyond that it is subjective, but I’d suggest a period measured in months before you considered a change for someone who will continue with the project but is temporarily unavailable.

One slight issue though; when you refer to PM, I assume you mean a Consultant PM under a PSC. There is no power to delegate (as there is for the Service Manager), but you don’t need one, as the Consultant is a corporate person, not an individual. You may need to empower someone to act in terms of your own corporate governance.

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Andy thanks.

Regards to the last paragraph i was referring to the Consultant under the PSC acting as the PM under the ECC and the requirement to delegate powers there if an individual is named.