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Procurement and contracts

What an employer’s agent is actually for

On design and build there is no architect administering the contract. Somebody has to hold the employer’s side of it, and the contract assumes you have appointed them.

The role the contract creates

An employer’s agent is the person named in a design and build contract to act for the client. The powers are not personal and they are not implied by seniority. They come from the contract, which sets out who may issue instructions, who values the works, who certifies payment and who certifies that the building is complete. If nobody is named, those powers sit nowhere useful.

This is different from a traditional contract, where the architect usually administers the agreement and the employer keeps a design team answering to them throughout. Under design and build the design duty moves to the contractor, and the consultants who wrote the specification are commonly novated across to work for them. The structure is legitimate and it works. What it removes is the person who used to be watching on your behalf.

The title varies. Some contracts and some practices use employer’s representative, or client representative, or simply name an individual. What matters is not the label but whether the contract confers the powers, because a person described as the agent in a fee proposal and nowhere in the building contract cannot do the job.

What the role covers

In practice the work divides into three phases. Before signature it is documentary: reviewing or writing the employer’s requirements, running the tender, and reconciling the contractor’s proposals against the requirements so that every divergence is settled rather than discovered later.

During construction it is a monthly rhythm. Instructions are issued in writing and valued. Interim payments are certified against work genuinely in place. Extensions of time are assessed, and their cost consequences assessed separately, because granting time and agreeing to pay for it are two decisions rather than one.

At the end it is certification and closure: practical completion, the schedule of outstanding items, the rectification period, and the final account. Each of those has a financial trigger attached to it, which is why they are worth getting right rather than getting past.

What happens when nobody holds it

The gap rarely announces itself. What happens instead is that the developer assumes somebody else is covering it. The quantity surveyor is measuring but has no authority to instruct. The solicitor drafted the contract and moved on. The project manager chairs the meetings but is not named in the agreement, so the contractor is entitled to treat their view as an opinion.

The consequences follow a predictable order. Loose performance wording is priced at the cheapest compliant answer, which is what a competent contractor should do. Work is instructed verbally on site and priced a year later by the only party holding records. Applications are paid in full because nobody issued the notice that would have reduced them.

Certification is where it costs real money

Two certificates carry most of the financial weight. The first is the monthly payment certificate, where the difference between valuing an application and valuing the works accumulates quietly across a two year contract.

The second is practical completion. Signing it releases part of the retention, starts the rectification period and stops liquidated damages running. Certifying early to keep a relationship comfortable is the most expensive courtesy available on a construction project, and it is done regularly because the pressure to sign arrives from every direction at once.

When the appointment is worth making

The most useful point to appoint is before the employer’s requirements are finalised, because that is the last moment at which the description of the building is still yours to shape. Everything after signature is administration of a position that has already been set.

The second most useful point is immediately after a scheme has gone wrong, which is when a good proportion of instructions actually arrive. The first exercise there is establishing where the position genuinely stands: what has been certified, what has been instructed but never valued, what has been claimed, and what is still open. That reconciliation is uncomfortable reading and it is the only honest starting point for anything that follows.

The appointment is worth less on a scheme where the design is complete, the specification is testable and the contract is a standard form without amendment, because there is less to administer and fewer places for a position to drift. Where the scheme is phased, the building is occupied, or the contract has been amended heavily, it is worth considerably more.

What this means for you

If you are about to sign a design and build contract, establish who is named as the agent and whether they have the commercial depth to value what they are certifying. Ask whether their professional indemnity cover extends to contract administration specifically, and ask to see the schedule rather than a statement.

Where the appointment is already running and you are not sure it is being held properly, the test is simple. Ask for the current forecast out-turn, the list of instructions issued and their assessed value, and the items still open. If that takes more than a day to produce, it was not being maintained. We set out how we run the role on our employer’s agent page, and the measurement discipline behind it on the client side quantity surveyor page.

One more thing is worth checking, and it is easy to establish. Ask how many schemes the person holding the role is running concurrently. Certification, change assessment and reporting all fall in the same few days of each month, on every project at once, and an agent carrying more than they can value properly will certify to the calendar rather than to the works.