In an NEC contract, the Employer and the Client are the same role under different names: NEC3 ECC says "Employer" and NEC4 ECC says "Client". It's the party that engages the Contractor and pays for the works, and the rename doesn't change its basic duties.
We haven't found a stated reason in the NEC documents. Our reading is that "Client" is the plainer word and avoids confusion with an employer of staff. For the role itself, see the Client under NEC. For other edition changes, see the NEC4 contracts guide.
What the role does in both editions
- Appoints the Project Manager and the Supervisor, and names them in the Contract Data.
- Prepares Contract Data part one and the requirements.
- Gives access to the Site and provides what the contract says it will. If it doesn't, compensation events 60.1(2) and 60.1(3) can apply.
- Pays the amounts certified.
- Takes over the works.
- Carries the matters listed at clause 80.1.
The Client doesn't usually run the contract day to day. The Project Manager does. Mixing up the two is a common source of trouble, because a person at the Client's organisation who gives a direction on site isn't necessarily giving a contract instruction.
What did change around the role
| Point | NEC3 ECC (Employer) | NEC4 ECC (Client) |
|---|---|---|
| Risk clause | Employer's risks at 80.1 | Client's liabilities at 80.1, with the Contractor's liabilities listed at 81.1 |
| Termination at will | May terminate for any reason | Only if Option X11 is included |
| Compensation event 14 | An Employer's risk event happens | An event that the contract lists among the Client's liabilities |
| Contractor's proposals | No clause | Can lead to a reduced amount for the Client to pay (clause 16) |
| Final payment | No final assessment | A Contractor's own assessment goes to the Client if the Project Manager doesn't assess, according to published reviews (53.2) |
Which word applies in which form?
| Form | The word it uses |
|---|---|
| NEC3 ECC, ECSC, PSC | Employer |
| NEC3 PSSC; NEC4 ECC, ECSC, PSC, PSSC, TSC | Client |
| NEC4 ECS | The Contractor acts as the paying party. A Client is named as the main contract's Client, but isn't a party to the subcontract |
| NEC3 and NEC4 Supply Short Contract | Purchaser |
So "Client" was already in NEC3's short professional service form, and Purchaser survives in NEC4's Supply Short Contract. The rename isn't universal. Read the form you are actually using. See the Parties definition for how each contract defines its two sides.
Who is the "client" in a subcontract?
This catches subcontractors out. Under the NEC4 ECS, you might call the main contractor your client in ordinary speech, but the contract uses "Client" for the main contract's Client. Here's a fictional illustration:
| In everyday speech | In the NEC4 ECS |
|---|---|
| "The client wants us to start early" (meaning the main contractor) | The Contractor instructs the Subcontractor |
| "The client's client has changed the spec" | The main contract's Client or Project Manager has made a change, and the Contractor needs to pass it down |
In letters, always use the defined term. NEC for subcontractors has more on how this works.
Common document mistakes
- Both words in one contract. "Employer" in a Z clause on an NEC4 contract, usually because it was pasted in from an old job, creates an undefined term. A court or adjudicator could probably work it out, but it's an avoidable argument.
- Using "client" without a capital. On a contract letter, the lower-case word is ordinary language rather than the defined term.
- Treating the Client as the Project Manager. Instructions, acceptances and certificates come from the Project Manager (or the Supervisor), as the contract says. If they're coming from the Client, ask the Project Manager to confirm.
- A company's own terminology. Many organisations already use their own titles, such as "sponsor" or "customer". Use them internally, but use the contract's word in contract communications.
For the other renames, see NEC4 terminology changes.
Related guides
- NEC4 Contracts: A Complete Guide
- The History of NEC Contracts
- NEC3 Risk Reduction Meetings
- Works Information vs Scope
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This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.