Immigration and Customs Enforcement (“ICE”) has increasingly focused on the construction industry—an area known for complex subcontractor chains and large, multi-tiered workforces. For general contractors and project managers, an unannounced ICE raid can instantly halt a project, expose the company to liability, and cause significant schedule delays.

This alert outlines best practices to mitigate the risk of an ICE enforcement action, key steps to take during a raid, and strategies for managing potential delays or damages that follow.

Understanding ICE Enforcement Actions

ICE enforcement efforts typically fall into three categories:

• Form I-9 Inspections and Audits- Administrative inspections where ICE reviews employee verification records to ensure compliance with the Immigration and Nationality Act (“INA”)
• Worksite Raids / “Knock and Talk” Investigations- On-site operations targeting undocumented workers or subcontractors using falsified documentation
• Subpoenas and Detention Orders- Requests for records or the temporary detention of workers for questioning

How to Prepare for a Potential Raid

The best protection against disruption is preparation. Every construction company should maintain a written worksite-enforcement response plan that covers who to contact, immediate actions to take, and how to minimize exposure.

1. Develop a Written Protocol

Designate a company representative—typically the project manager, safety officer, or compliance lead—to act as the on-site point of contact if ICE arrives. A written protocol should clearly outline this person’s responsibility and indicate that he or she should be trained to:

• Ask to see identification and any warrant.
• Confirm whether the warrant is judicial (signed by a judge) or administrative (issued by ICE itself), since only judicial warrants authorize entry into non-public places.
• Contact company counsel and senior management immediately.
• Remain calm and avoid confrontation while ensuring agents stay within the scope of the warrant.

2. Train Supervisors and Front-Line Staff

All site personnel should know:

• Not to interfere with agents or obstruct access
• Not to volunteer information beyond what is legally required
• To refer any inquiries to the designated point of contact

3. Audit Employment and Subcontractor Practices

Contractors should regularly:

• Review all I-9 forms for accuracy and completeness.
• Confirm that subcontractors maintain proper documentation and verify employment eligibility.
• Include indemnification and compliance-certification clauses in all subcontract agreements.

It’s important to note that, routine internal audits—ideally with outside counsel—demonstrate a good-faith effort to comply and can mitigate penalties.

What to Do During an ICE Raid

If ICE agents appear at your site:

1. Stay Calm and Follow the Plan. Ask to review the warrant before granting entry. Do not consent to expanded searches or seizures beyond the warrant’s scope.
2. Contact Counsel Immediately. Your attorney can advise on warrant limitations, employee questioning, and document requests.
3. Avoid Voluntary Statements. Management and workers should refrain from answering substantive questions until speaking with counsel.
4. Document Everything. Note the agents’ name, the time and duration of the visit, what was searched or seized, and any documents or subpoenas served.
5. Protect Non-Public Areas. Unless the warrant specifies otherwise, ICE agents cannot enter offices, trailers, or storage areas that are not open to the public.
    

After the Raid: Managing Legal and Operational Fallout

Following an ICE action, companies should immediately conduct an internal review with counsel to identify potential compliance gaps or exposure. Notify your insurer if policies covering legal expenses or business interruption may apply.

Communications and Documentations

• Prepare a factual internal summary but avoid speculation or assigning blame.
• Centralize all external communications, especially with the media or project owners, through one authorized spokesperson. Have talking points prepared in advance.
• Preserve all relevant records and digital communications related to the raid.

Coordinate with Subcontractors

Confirm whether subcontractor personnel were detained and assess how this affects project timelines. Review each subcontractor’s compliance obligations and ensure written records reflect their responsibility for workforce documentation.

Delays and Damages: Navigating Contractual Implications

ICE raids can create substantial project delays, labor shortages, and safety shutdowns. These disruptions may trigger liquidated damages or default provisions under prime contracts and subcontracts. General contractors and project managers should carefully review contracts and take recommended steps with related parties to help mitigate risks and limit liability.   

1. Government Action and Force Majeure Clauses

Contractors should review or revise contract language to treat ICE enforcement actions as force majeure or government-caused delays—events beyond the contractor’s control that justify schedule extensions and limit liability.

2. Indemnification Provisions

Require subcontractors to indemnify and hold harmless the general contactor for immigration-related violations or enforcement actions caused by their workforce. This should extend to costs arising from lost productivity, re-mobilization, or project delays.

3. Notice and Documentation

Most construction contracts require prompt written notice of any delay. Contractors should:

• Provide immediate written notice to the owner and other parties upon an ICE incident.
• Keep contemporaneous records of the interruption, lost time, and additional costs.
• Track all correspondence with ICE or law enforcement to support claims for extensions or compensation.

Long-Term Risk Mitigation Strategies

To minimize the likelihood of ICE targeting your site—and to strengthen your legal posture—contractors should:

• Implement a Formal Compliance Program: Establish written procedures for I-9 verification, recordkeeping, and periodic audits.
• Strengthen Contract Language: Require subcontractors to warrant compliance with immigration laws and to provide documentation upon request.
• Review Insurance Coverage: Confirm whether your builder’s risk, general liability, or business interruption policies extend to losses from government enforcement actions.

Key Takeaways

• ICE raids are disruptive but manageable with preparation and counsel involvement.
• A written response plan and regular compliance audits are your best defenses.
• Treat ICE-related interruptions as government-caused delays in contract language.
• Immediate communication, documentation, and legal oversight are critical to mitigating risk.

For More Information

The Construction team at Tarter Krinsky & Drogin can help you devise strategies for mitigating risks and responding to ICE raids at project sites.  Reach out to a member of our team to discuss.