This clause names specific people who must work on your project, and says the other party can end the contract if those people leave or are reassigned. It matters because it locks you into keeping certain staff members on a job, which limits your flexibility to manage your own team. For example, a client might insist that "Sarah, your lead developer" must stay on their project for two years. Legally, this is a condition of the contract—if Sarah leaves, the client has grounds to terminate and potentially claim damages.
Negotiate to include a replacement clause: "If key personnel become unavailable, we will provide a replacement of equal or greater experience within 10 days." Push back on naming individuals by suggesting you list "roles" instead (e.g., "one senior developer with 5+ years' experience"). If they insist on names, add a clause allowing you to substitute people with the client's "reasonable approval" if someone gets sick, leaves, or is promoted. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause names specific people who must work on your project, and says the other party can end the contract if those people leave or are reassigned.
Why should I care about this clause?
It matters because it locks you into keeping certain staff members on a job, which limits your flexibility to manage your own team.
What are my options?
For example, a client might insist that "Sarah, your lead developer" must stay on their project for two years.
How does this affect small businesses?
Legally, this is a condition of the contract—if Sarah leaves, the client has grounds to terminate and potentially claim damages.