Civil Engineering Reference
In-Depth Information
12 Can there be two employers on one contract?
It is presumed that 'two employers' means two entirely separate persons or companies. For
example,twofriendsmayjointlybuyanoldbarnandintendtoconvertitintotwodwellings
for their families. They may wish to, jointly, engage the architect and, jointly, enter into a
contract with the contractor. They may reason, with some justification, that if architect and
contractor can be sure of doing both dwellings, there may be financial economies of scale.
The straight answer to the question is 'Yes'. However, there are considerable difficulties
involved. The architect will require instructions from the clients, and the contractor will re-
quire instructions from the architect during the progress of the Works. Therefore, the cli-
ents must agree about everything. Who will be responsible for paying? Someone must actu-
ally sign the cheques. Will a joint account be set up and will both clients have to sign each
cheque? What if the clients disagree? To whom will the architect send fee accounts? Will
both clients' names be inserted in the building contract as 'Employer'? What if one of the
clients wishes to spend more money than the other? Must there be separate accounts within
both the architect's engagement and the building contract? What is the position if the two
friends have a spectacular falling out?
Most of these questions suggest awful situations, possibly resulting in nightmarish legal
proceedings. The architect might have a dispute with only one of the employers but be ob-
liged totake action against bothbecause the 'Employer'inthe terms ofengagement isiden-
tified by two names.
Anarchitectoracontractorwhoagreestocontractonthisbasisprobablyhasadeathwish
- certainly an insolvency wish. Although, like a good many other recipes for disaster, hav-
ing two employers on one contract can be done, it is not a good idea. A far better idea - in
fact the only sensible idea from the architect's and contractor's points of view - is for the
two persons to enter into a contract between themselves which sets out how they will do
everything connected with the project. Most importantly, the contract will say which of the
persons will be entered into the terms of engagement and act as client. It will also say that
this same person will be entered into the building contract as the 'Employer'. In that way,
both architect and contractor will have one point of contact and, to put it bluntly, one person
to sue if things go wrong. How the two persons arrange their own liabilities is their affair,
but it is not something that need concern the architect and the contractor.
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