How Much Does an Employer’s Agent Cost?

How Much Does an Employer’s Agent Cost?

An Employers Agent will be engaged on the behalf of a client/Employer where a project is to be delivered using a design and build procurement process. The role of the Employers Agent is to administer the building contract and to protect the interests of the Employer. 

Before engaging an Employers Agent it is of benefit to obtain competitive fee proposals from consultants who can fulfil this role. This fee quotation may also include other requirements to ensure that the potential consultant has the relevant experience and expertise to delivery the instruction, has suitable insurance coverage, resource etc. 

Employers Agent  – Scope of Services

As part of the above process, it is important to define the role of the Employers Agent. A client’s requirement may be to purely engage a consultant to act as an Employers Agent and to not fulfil any other roles within the project/design team, however the role of the Employers Agent is often combined with that of the Project Manager and sometimes may be delivered by the Architect. Therefore, due consideration should be given to the level of input that is required from the individual/company that is being engaged. 

It is also imperative that the client understands the other consultants who will be required to input into the project which can include an Architect, Quantity Surveyor, Planning Consultants, Structural Engineers, Environmental Consultants, Mechanical and Electrical Consultants etc. In addition to this there will likely be requirements for various investigations and surveys including ecology, ground conditions, utility searches etc. This is why it is often useful to engage the Employers Agent as a combined Employers Agent and Project Manager as they can assist with identifying, appointing and delivering the various project requirements. 

Employers Agent – The Fee

Employers Agents are normally engaged on larger projects, typically of values in excess of £1m, although they can be engaged on smaller schemes where the scope of the project requires a design and build procurement approach. The cost of an Employers Agent will largely depend upon the size/value of the proposed construction project. Given the typical larger project values, an Employers Agent will often provide a fee proposal based upon a percentage of the construction value. As previously stated, the role of an Employers Agent will normally be combined with that of a Project Manager. An indicative guide to the likely percentage fee that will be applied to the project value is as follows:

An alternative approach would be to request a fee proposal from an Employers Agent on a time spent basis using an hourly rate. The hourly rate of an Employers Agent will vary depending on the size of the company, their seniority, expertise etc. and this may range from £120/hr to up to £300/hr. 

It is difficult for an Employers Agent to calculate the anticipated time at the outset of a project, it is therefore likely that an Employers Agent will advise on a budget for each stage of a project and will revise during the progress of a project as the design, budget etc. develops. 

Employers Agent – Other Consultant Fees

As previously advised, a client should ensure that they have sufficient funds to engage the other consultants/members of the design team. Although a design and build procurement route involves less upfront design, there will still be a requirement to complete some outline design and employers requirements. 

We Offer a Range of Employers Agent Services across the UK:

Employers Agent Bristol
Employers Agent Birmingham
Employers Agent London
Employers Agent Manchester
Employers Agent Cardiff