Insights — Design and Build Contracts What does an Employer’s Agent do?

If you’re procuring a building using a design and build contract, you’ll often hear that you need an Employer’s Agent. But what does the role involve, and how is it different from other consultants on a project? Here’s a clear guide for developers, occupiers and public bodies.

Design and build in brief

Under design and build, a single contractor takes responsibility for both designing and constructing the project, usually developing a design that the client’s team has already started. It gives the client one point of responsibility and greater cost certainty, but it also means the client needs someone to protect their interests while the contractor leads the design. That’s where the Employer’s Agent comes in.

What is an Employer’s Agent?

An Employer’s Agent is the client’s representative under a design and build contract, most commonly the JCT Design and Build Contract. Unlike some contract roles, the Employer’s Agent acts on behalf of the client: their job is to administer the contract in the client’s interests, rather than as an independent referee.

What does an Employer’s Agent actually do?

Typical responsibilities include:

• Preparing the Employer’s Requirements: helping define what the client needs, so the contractor’s design and price respond to a clear brief
• Tender and appointment: managing the tender process, reviewing contractor proposals and advising on the best-value offer
• Contract administration: issuing instructions, managing notices and keeping the contract running properly
• Payments: assessing the contractor’s interim applications and managing payment notices on the client’s behalf, so only work properly carried out is paid for
• Changes: assessing and agreeing the cost and time impact of any changes before they’re instructed
• Monitoring progress and quality: tracking the programme and checking the contractor is delivering what the contract requires
• Completion: managing the handover process, defects and the final account

Employer’s Agent or Contract Administrator?

The two roles are often confused:

• A Contract Administrator (used on traditional contracts such as the JCT Standard Building Contract) must act fairly and impartially when certifying payments, extensions of time and completion.
• An Employer’s Agent acts for the client. The contractor has its own responsibilities under the contract, and the Employer’s Agent makes sure the client’s position is protected.

On NEC contracts, a similar role is carried out by the Project Manager, often supported by a Supervisor who checks quality.

When do you need one?

An Employer’s Agent is worth appointing on most design and build projects, particularly where:

• the client doesn’t have in-house construction expertise
• the project is complex, high-value or time-critical
• funders or investors require independent, professional contract administration
• the client wants to keep cost and quality under tight control while the contractor leads the design

Why the right Employer’s Agent matters

A good Employer’s Agent saves far more than they cost: by catching unjustified claims, keeping changes under control, preventing disputes and making sure the building delivered matches what was promised. Look for someone with chartered status (such as MRICS), direct experience of the contract form you’re using, and a senior person who stays involved from tender through to final account.

How October Projects can help

October Projects acts as Employer’s Agent on JCT Design and Build contracts, and as Project Manager under NEC contracts, for clients across Birmingham, the West Midlands and the UK. Every appointment is led by a chartered surveyor (MRICS) with 15 years’ experience, from early procurement advice through to final account and beyond.

Planning a design and build project? Get in touch to discuss how we can protect your interests, or read more about our project management and cost management services.

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