Use retained search when the role shapes the company and the right person is not looking. Use contingency recruiting when the role is well defined, the talent pool is visible and speed across several hires matters more than exclusivity.
Most construction and real estate firms need both at different times. The mistake is picking a model by habit or by fee instead of by the role in front of you.
01 · The mechanicsHow the Two Models Actually Work
In a retained search, the firm is engaged exclusively for a defined role. A portion of the fee is paid up front, with the balance paid at milestones or at placement. The recruiter commits a dedicated team to the search, builds a market map, and is accountable for delivering a finished result, not just resumes.
In contingency recruiting, the fee is paid only when a candidate is hired. Clients often work with several firms at once, and the first firm to present the hired candidate earns the fee.
Contingency fees are typically calculated as a percentage of first year base salary, while retained fees are usually tied to total first year cash compensation.
An exclusive, accountable search
- Engagement
- One firm, exclusive, for a defined role
- Fee paid
- Part up front, balance at milestones or placement
- Fee basis
- Total first-year cash compensation
- Delivers
- A finished result: market map, assessment, offer and resignation managed
A race to present the hire
- Engagement
- Often several firms at once
- Fee paid
- Only when a candidate is hired
- Fee basis
- First-year base salary
- Delivers
- Qualified resumes, quickly, for defined roles
Neither model is better in the abstract. They are built for different problems.
02 · Retained searchWhen Retained Search Is the Right Call
Retained search earns its fee when four conditions are present:
The role is a leadership seat
President, COO, CFO, VP of Operations, Regional Vice President, Director of Preconstruction, VP of Development. A miss here affects backlog, margins and people for years.
The best candidates are employed and not looking
Top construction operators are typically busy running projects and are rarely on job boards. Reaching them requires direct, confidential outreach and a reason to listen.
Confidentiality matters
You are replacing someone who is still in the seat, entering a new market, or preparing for a transaction. You need a search that does not show up on LinkedIn.
The profile is not obvious
The company is changing. A founder is stepping back. A private equity sponsor wants a different operating model. The search has to define the role as much as fill it.
In these situations, the value of retained search is not access to a database. It is the work of mapping the market, assessing candidates against a clear profile, managing the process from first call through offer and resignation, and protecting the client from a counteroffer at the finish line.
03 · Contingency recruitingWhen Contingency Recruiting Is the Right Call
Contingency recruiting works well when:
- The role is well defined and repeatableProject managers, assistant project managers, superintendents, estimators, project engineers and field engineers.
- You have several openings at onceA GC that just won three projects may need two superintendents and four PMs in the same quarter.
- The candidate pool is reachableThe role has a clear title, clear qualifications and a large enough pool that a skilled recruiter can surface qualified people quickly.
- Speed matters more than exclusivityYou need qualified candidates in front of hiring managers this month.
The tradeoff is focus. A contingency recruiter juggling many open roles across many clients will naturally prioritize the searches most likely to close.
If your role is difficult, under market on compensation, or in a hard to recruit location, it can quietly fall to the bottom of the pile.
04 · Role by roleA Practical Role by Role Guide
| Role | Typical best fit | Why |
|---|---|---|
| CEO, President, COO | Retained | Company defining, confidential, small passive candidate pool |
| CFO, VP of Finance | Retained | Transaction and lender exposure, high cost of a miss |
| Regional VP, Division Manager | Retained | New market entry or turnaround, relationships drive revenue |
| VP of Development, Head of Acquisitions | Retained | Market specific relationships and track record are hard to verify |
| Director of Preconstruction, Chief Estimator | Either | Depends on market scarcity and confidentiality |
| Senior PM, General Superintendent | Either | Retained if in a scarce market or a specialized sector like data centers |
| PM, Superintendent, Estimator | Contingency | Defined profile, reachable pool, often multiple hires |
| Project Engineer, APM, Field Engineer | Contingencyor college | High volume, early career pipeline |
The "either" roles turn on the market. The same title can draw from a pool a skilled recruiter reaches quickly in one metro, or require searching wherever a specialized sector like data centers is being built.
05 · Before you chooseQuestions to Ask Before Choosing a Model
Answer these five questions about the role in front of you. Each answer leans one way.
If most of your answers point to high cost, passive candidates, confidentiality and an evolving profile, retained search is the better investment. If they point to defined roles, volume and speed, contingency is usually the better tool.
06 · ClosingWhat This Means for Your Firm
The firms that hire well treat recruiting models like tools on a jobsite. Each one fits a specific task. Before your next opening, start with the role, the market and the cost of a miss, then pick the model.
A good search partner should be willing to tell you when a role does not need a retained engagement, and when one does.
Vitality Group offers both retained search and contingency recruiting exclusively for construction and real estate. If you are weighing which approach fits an open role, we are glad to talk it through. Contact Vitality Group or call 214-259-9200.