Construction recruitment fees usually pay for a defined hiring service, not simply access to a CV. Depending on the agreement, that service may include briefing the role, advertising, headhunting, interviewing, checking work history and references, managing the offer, and supporting the resignation process. The fee is commonly calculated against the successful candidate’s remuneration, although some agencies use a fixed fee.
The main commercial models are contingent, retained and exclusive recruitment. The difference is when the employer commits, when the recruiter is paid and how many parties can work on the role. Before signing terms, check the fee basis, what is included, when an invoice becomes payable, and what happens if the hire leaves early.
What a recruitment fee should cover
A construction recruiter should do more than forward applications. The work starts with understanding the job: project type, delivery stage, reporting line, commercial exposure, team structure, location, program pressure and the reason the role exists. A credible search also tests which requirements are essential and which are preferences that could exclude capable people.
The recruiter may then advertise the role and approach relevant people directly. Both methods matter. Advertising creates reach and gives active jobseekers a clear route into the process. Headhunting reaches people who may be settled but open to a specific move. The recruiter should screen interest, capability, motivations, availability and package expectations before making an introduction.
For permanent construction appointments, the service should also include clear communication through interviews and offer negotiation. Reference checking matters when it tests the claims made during the process rather than repeats generic questions. The employer should know exactly which parts of this work are included in the agreed fee.
Contingent recruitment
Under a contingent arrangement, the recruiter is paid when an introduced candidate is hired. There is generally no upfront search fee. This model can suit a clearly defined role when the employer wants flexibility and the agency is prepared to accept the risk of working without a guaranteed result.
The apparent simplicity can hide problems when several agencies receive the same vacancy. Each recruiter has less certainty that careful search work will be rewarded. The employer may receive duplicated approaches, uneven candidate messages and a large volume of lightly assessed CVs. Internal teams can then spend more time coordinating suppliers and deciding who introduced whom.
Contingent does not have to mean rushed. A disciplined recruiter can still run a focused process, but the employer should ask how the agency controls representation, obtains candidate consent and verifies suitability before submission.
Retained recruitment
Retained recruitment involves staged payment for conducting the search, usually with part of the fee committed before the appointment is completed. The employer is paying for a structured assignment as well as the eventual hire.
This model is often used when the role is senior, confidential, specialised or difficult to define through advertising alone. It gives the recruiter greater certainty to map the market, approach people carefully and report on what the search is finding. It also asks more commitment from the employer at the outset.
The agreement should set out the search scope, communication rhythm, candidate assessment, deliverables and treatment of any unpaid balance if the brief changes or closes. A retained label does not guarantee quality. The method and accountability behind it still need examination.
Exclusive recruitment
Exclusive recruitment gives one agency a defined period or mandate to manage the vacancy. Payment may remain contingent on a successful hire, or the commercial terms may include a commitment fee. Exclusivity describes the working relationship, not necessarily the payment structure.
For employers, the practical benefit is a single message to the market and one accountable recruitment partner. The recruiter can invest more deeply in the brief without competing to submit a name first. In return, the employer gives up the option of instructing several agencies during the agreed scope.
Exclusivity works when expectations are explicit. Agree how the recruiter will advertise and headhunt, how progress will be reported, what happens with direct applicants and existing referrals, and when either party may end the arrangement. If current hiring conditions are shaping the brief, the SEQ Market Pulse provides useful local context before the search begins.
How the fee is calculated
Many permanent recruitment agreements calculate the fee as a percentage of remuneration. Others use a fixed amount. The important question is not only the calculation method but the definition of remuneration.
Terms may refer to base salary, superannuation, vehicle allowance, guaranteed allowances, incentives or the total package. A construction package can contain several components, so an undefined fee base creates avoidable disputes. Ask the agency to show which components are included and how any non-cash benefit is treated before the search starts.
Also check whether GST is added, when the invoice is issued and how long the employer has to pay. The trigger may be acceptance of the offer, signing an employment agreement or commencement. If the candidate’s package changes between offer and start, the terms should explain whether the fee changes as well.
Replacement and rebate clauses
Many agency terms provide some protection if a placed candidate leaves during an initial period. That protection might be a replacement search, a partial rebate or another form of credit. The precise wording matters more than the heading.
Check what activates the clause and what excludes it. Common conditions can relate to invoice payment, prompt notice, material changes to the role, redundancy, workplace conditions or whether the employer hires another introduced candidate. Employers should understand the procedure and any deadlines before relying on the protection.
A replacement clause is not a substitute for a sound process. Clear briefing, honest candidate communication, proper assessment, references and disciplined offer management reduce preventable mismatches before commencement.
Comparing proposals properly
The lowest quoted fee is not automatically the lowest hiring cost. Compare the work, access and accountability attached to each proposal. Ask who will run the assignment, how they will reach candidates, what assessment occurs before introduction and whether references are completed before or after offer.
Highset’s approach is candidate-first. We meet and reference strong construction people before a client has a vacancy, then introduce a person where the evidence and timing fit. That sits alongside role advertising and targeted headhunting. The aim is a well-supported introduction, not a folder of CVs that transfers the screening work back to the employer.
The right commercial model depends on the role and the confidence each side can place in the process. Whatever model you choose, insist on written terms, a clear definition of service and a shared view of what a suitable appointment looks like.
Frequently asked questions
Do recruitment agencies charge the employer or the candidate?
For permanent construction recruitment, the hiring employer generally pays the agency under its agreed terms. Candidates should ask questions if anyone proposes charging them for access to a job opportunity.
Is an exclusive agreement the same as a retained search?
No. Exclusivity means one recruiter has the agreed mandate. Retained refers to a payment structure in which the employer commits fees across the search. An assignment can be exclusive and contingent, or exclusive and retained.
What should I request before appointing an agency?
Request the complete terms of business and a plain explanation of the fee base, invoice trigger, payment terms, candidate ownership, replacement or rebate conditions, and the work included. For a focused discussion about your next permanent hire, tell us who you need.