"When the way of code is abandoned, doctrines of 'best practices' and 'standards' appear... When harmony is unnoticed, rules and processes multiply." – The Tao of Code ¹

AI pair programmers have revolutionized how digital agencies build client solutions and by now have learnt the limitations of the approach - AI assistants have a limited 'context window' and quickly start to forget the context of what you're working on, as you progress through a dev project.

Context Engineering is the secret sauce that transforms the resulting chaos into scalable, maintainable solutions. In this guide, we'll demystify context engineering – a structured-yet-agile approach that gives AI the complete picture so it can help you deliver exceptional client work. We'll cover why context matters for agencies, break down core principles, and provide practical workflows for VS Code, Cursor, Windsurf, Claude, and more.

From Vibe Coding to Client Reality Check

Picture this familiar agency scenario: Your client needs a new e-commerce integration by Friday. You excitedly unleash your AI assistant on the feature with minimal guidance – "Sure, AI, just build this Shopify webhook handler!". The code practically writes itself, and it feels like coding magic.

Fast forward to the client demo: the integration breaks because the AI didn't know about their custom authentication layer. Or worse, it conflicts with their existing analytics tracking that another developer implemented last month.

Welcome to the vibe coding hangover that plagues agency work. Vibe coding (a term popularized by Andrej Karpathy, one of the founders of OpenAI and was Director of AI at Tesla) is all about "fully giving in to the vibes" – minimal input, no validation, fast dopamine hits from auto-generated code ². It's tempting when clients demand quick turnarounds, but when it's time to scale that solution across their entire marketing tech stack? Disaster strikes.

In one survey, 76.4% of developers reported low confidence in AI-generated code without human review, citing hallucinated code and context omissions as top issues ³. For agencies, this translates to:

• Broken integrations between marketing tools

• Inconsistent tracking implementations

• Technical debt that compounds across client projects

• Developers constantly re-explaining client requirements to AI

Why is context the missing piece for agencies? Imagine trying to build a campaign landing page knowing nothing about the client's brand guidelines, existing tech stack, or conversion goals – you'd create something generic and ineffective. AI faces the same challenge. It needs the surrounding context (client requirements, existing integrations, campaign objectives, brand standards) to produce reliable, on-brand code.

Context engineering is about providing that missing puzzle piece. As one definition puts it: "Context Engineering is the structured, deliberate design of all the information an AI needs to perform a task reliably… not just how you prompt, but what you feed into the system – rules, examples, documentation, architectural patterns, and more." ⁵.

or agencies, this means engineering the AI's environment with client-specific knowledge so it always generates solutions that fit seamlessly into their ecosystem. Tools like MSP (Mandatory Session Protocol) are specifically designed to capture and maintain this context across development sessions, ensuring nothing gets lost between sprints or team handoffs.

Core Principles of Context Engineering for Agency Development

So how does context engineering actually work in an agency setting? Think of it as building a full stack of context for each client ⁶. Instead of treating each AI prompt like a one-off request, you maintain an ongoing "shared memory" about the client's entire digital ecosystem. Here are the core principles adapted for agency work:

1. Provide Complete Client Context, Not Just Feature Requests

Traditional prompt engineering obsesses over phrasing one question. Context engineering for agencies goes broader – you continuously feed the AI all relevant client information:

• Brand guidelines and tone of voice

• Existing marketing tech stack (GTM, analytics, CRM integrations)

• Campaign objectives and KPIs

• API documentation for their tools

• Previous implementation decisions

For example, when building a lead capture form, don't just prompt "create a form component." Instead, provide context about their Marketo instance, GDPR requirements, existing form validation patterns, and conversion tracking setup.

2. Memory & State Across Client Projects

Agency developers often switch between multiple clients daily. Keep a running memory of what's been done for each client. This can mean:

• Using tools that store long-term context per client

• Maintaining client-specific knowledge bases

• Tracking implementation decisions and their rationales

The MSP protocol excels here – it automatically tracks every decision, code change, and progress update in a structured knowledge graph, making it easy to restore full context when returning to a client project.

3. Structured Outputs for Reusable Components

Agencies thrive on efficiency through reusability. Define the format and structure you expect from AI:

• Component libraries matching your agency's standards

• Consistent naming conventions across client projects

• Standardized integration patterns for common tools (Google Analytics, Facebook Pixel, etc.)

By setting these rules upfront, you avoid the "random code generator" syndrome and build a library of reliable, tested solutions.

4. Client-Specific Examples & Templates

Show, don't just tell. Providing examples from the client's existing codebase greatly increases accuracy:

• Their current component patterns

• Existing API integration examples

• Brand-specific UI implementations

If the client has a well-implemented feature, feed it to the AI as a pattern to follow. This ensures consistency across their entire platform.

5. Retrieval Augmentation (RAG) for Marketing Tech

Digital agencies work with dozens of marketing platforms. Bring in external knowledge when needed:

• Platform-specific API documentation

• Best practices for each tool

• Common integration patterns

Why let the AI hallucinate a Klaviyo integration when you can feed it the actual API docs? This dramatically improves relevance and reduces debugging time ⁷.

In essence, context engineering = vibe coding + agency discipline. It doesn't kill creativity – it channels it toward client success. Teams adopting context engineering have reported 10× better accuracy and 100× fewer production failures compared to laissez-faire vibe coding ⁹.

For agencies, this translates to:

• Faster client onboarding (AI already knows their stack)

• Consistent quality across team members

• Reduced rework and bug fixes

• Happy clients who see cohesive solutions

How-To: Context Engineering for Agency Teams (By Tool)

Let's get practical. Here's how to apply context engineering with popular development tools, with a focus on agency-specific workflows:

VS Code (GitHub Copilot & Extensions) for Agency Development

Most agency developers live in VS Code. Here's how to supercharge it with context:

Client Workspace Organization:

• Create separate VS Code workspaces for each client

• Use the multi-root workspace feature to include all client repos

• This ensures Copilot indexes the right context

Leverage Workspace Context:

• Use commands like /explain @workspace to help Copilot understand the entire client ecosystem ¹²

• When building a new tracking script, Copilot can reference existing analytics implementations

• Example: "Add Facebook Pixel tracking @workspace following our existing GA4 pattern"

Documentation Integration:

• Keep client documentation in the workspace

• Create a CLIENT_CONTEXT.md file with:

  • Tech stack overview

  • API keys/endpoints (use env vars for sensitive data)

  • Brand guidelines

  • Common patterns and decisions

Long-Term Memory with MCP:

• Tools like Pieces for Developers offer MCP integration ¹⁴

• Track implementation decisions across sprints

• Query past solutions: "How did we handle CORS for this client before?"

Cursor – The AI Code Editor for Agency Scale

Cursor's project-wide understanding makes it perfect for complex client projects:

Client Knowledge Base:

• Cursor automatically ingests your entire codebase ¹⁶

• Organize client repos with clear naming: client-name-frontend, client-name-api

• Keep all related repos in one Cursor workspace

Reference Client Assets:

• Use @ to reference specific client files ¹⁷

• Example: @client-brand-guide.md update button styles to match brand

• Reference multiple files: @analytics-config.js @conversion-tracking.js add new event

Built-in RAG for Marketing Platforms:

• Use @web to fetch current platform documentation ¹⁸

• Example: @web Shopify webhook best practices 2025

• Combine with client context: @client-shopify-config.json implement order webhook

Windsurf – AI-First IDE for Full-Stack Agency Projects

Windsurf's Cascade agent is particularly powerful for agency work where changes ripple across multiple systems:

Multi-File Client Updates:

• Cascade understands your entire project context ²⁰

• Example: "Add new product category to e-commerce site"

• Cascade will update: database schema, API endpoints, frontend components, and admin panel

Agency-Specific Memories:

• Configure Memories for each client ²⁴

• Set rules like: "Always use client's custom analytics wrapper"

• "Never modify legacy payment integration without approval"

External Documentation Integration:

• Feed Cascade client PDFs, brand guides, and API docs ²⁶

• It will quote real documentation when implementing features

• Perfect for maintaining brand consistency

Claude Code (CLI) – Enterprise-Grade Context for Agencies

Claude's massive context window is perfect for complex agency projects:

CLIENT.md Files:

• Create a CLIENT.md for each client ²⁸

• Include:

  • Current campaign objectives

  • Tech stack with versions

  • Integration passwords/keys (encrypted)

  • Common troubleshooting steps

  • Client-specific coding standards

Campaign-Specific Context:

• Structure prompts around campaign goals

• Example: "Step 1: Review CLIENT.md for conversion goals; Step 2: Implement A/B test for hero section; Step 3: Ensure tracking fires correctly"

MCP for Agency Workflows:

• Connect Claude to client repos via GitHub MCP ³⁵

• Allow it to create feature branches per task

• Review all changes before client deployment

Claude Desktop – Your AI Agency Partner

For agencies wanting conversational AI assistance:

Project Templates:

• Create Projects in Claude for each client ⁴⁶

• Initialize with: "This is [Client Name]'s e-commerce platform built on Next.js with Shopify backend. Key integrations include..."

MCP for Multi-Tool Access:

• Configure Filesystem MCP for each client folder ⁴²

• Add GitHub MCP for version control ⁴⁴

• Claude can now edit files and create PRs conversationally

Campaign-Focused Conversations:

• One chat thread per campaign or feature

• Start each with: "Working on [Client]'s Black Friday campaign. Context: [link to brief]"

• Keep threads focused to maintain relevance

The Agency Advantage: Scaling Quality with Context

Implementing context engineering transforms agency development from chaotic firefighting to systematic excellence. By maintaining rich context for each client, your team can:

1. Onboard new developers faster – They inherit complete client context

2. Deliver consistent quality – AI follows established patterns

3. Reduce context switching overhead – Jump between clients without losing flow

4. Build reusable solutions – Extract patterns that work across clients

The MSP framework provides a battle-tested implementation of these principles, specifically designed for teams who need to maintain complex context across multiple projects.

Call to Action: Start Your Context Engineering Journey

If you're an agency developer drowning in client complexity, challenge yourself this week to implement one context engineering practice:

1. Create a CLIENT_CONTEXT.md for your most complex client

2. Try the MSP protocol to track your development sessions

3. Configure MCP in your favorite AI tool for persistent memory

4. Set up client-specific workspace in Cursor or Windsurf

Start small, be consistent, and watch your AI-assisted development transform from a chaotic scramble to a well-orchestrated symphony of efficiency.

The era of "winging it" with AI is giving way to an era of "engineering it" with AI – and agencies that master context engineering will deliver exceptional client results at unprecedented speed. So sharpen your context, feed your AI the good stuff, and build client solutions with confidence. The missing piece is in place, and the future of agency development looks contextually bright! 🚀“The Vibe Coder works in silence. When the work is accomplished, the team says, ‘Amazing. We did it all ourselves.’” – The Tao of Code (Now go forth and build, and may the context be with you!)

Sources

• Indika, S. “RIP Vibe Coding – Why Context Engineering Is the New Frontier of AI Development.” LinkedIn, Jul 3, 2025. – Definition of context engineering and vibe coding issues ⁴⁹ ⁵ ⁶

• Goenka, U. “Context Engineering: Why It’s Crushing Vibe Coding in 2025.” Medium, Apr 2025. – Statistics on accuracy and failures with context engineering ⁹

• Cole Medin. “Context-Engineering-Intro (GitHub Repo).” GitHub, 2025. – Quote on context vs prompt vs vibe coding effectiveness ¹⁰

• Harrison, C. “Provide context to GitHub Copilot Chat.” DEV.to (GitHub), Sep 10, 2024. – Tips on highlighting code, workspace index, and file attachments in VS Code ¹¹ ¹² ¹³

• Cursor Team. Cursor Features. cursor.com, 2025. – Cursor’s retrieval-based context and code referencing  ¹⁶ ¹⁷

• Guzey, V. “This AI IDE Can Code For You – Windsurf AI Tutorial.” DEV.to, May 24, 2025. – Overview of Windsurf Cascade and context-awareness in project scope  ²⁰ ²¹ ²³

• Datacamp. “Windsurf AI Agentic Code Editor: Features.” 2023. – Cascade feature: memories and rules for context retention  ²⁴ ⁵⁰

• Anthropic. “Claude Code: Best practices for agentic coding.” Anthropic Blog, Apr 18, 2025. – Using CLAUDE.md files for persistent context, and tool usage  ²⁸ ³¹

• Bhushan L. “Create a Personal Coding Agent with Claude Desktop and MCP Tools.” Medium, Apr 1, 2025. – How to configure Claude Desktop with Filesystem/GitHub MCP, and importance of reviewing AI changes  ⁴⁴ ⁴² ⁴⁵ ⁴⁶

• The Tao of Code, Rick Rubin & collaborators, 2023. – Philosophical quotes adapted  ¹ ⁸ ⁴⁷ ⁴⁸

Referenced Links

¹ ⁸ ⁴⁷ ⁴⁸ THE WAY OF CODE - Rick Rubin · GitHub   https://gist.github.com/mysticaltech/8b91a40141001a6e725f568c22cc5e1b

² ³ ⁴ ⁵ ⁶ ⁷ ⁴⁹ RIP Vibe Coding | Why Context Engineering Is the New Frontier of AI Development https://www.linkedin.com/pulse/rip-vibe-coding-why-context-engineering-new-frontier-ai-indika-exahc

⁹ Context Engineering: Why It's Crushing Vibe Coding in 2025 | Medium https://uditgoenka.medium.com/context-engineering-7713c5b7eccc

¹⁰ GitHub - coleam00/context-engineering-intro   https://github.com/coleam00/context-engineering-intro

¹¹ ¹² ¹³ Provide context to GitHub Copilot Chat - DEV Community https://dev.to/github/provide-context-to-github-copilot-chat-24op

¹⁴ ¹⁵ Integrate Pieces Model Context Protocol (MCP) with GitHub Copilot https://docs.pieces.app/products/mcp/github-copilot

¹⁶ ¹⁷ ¹⁸ ¹⁹ Features | Cursor - The AI Code Editor   https://cursor.com/en/features

²⁰ ²¹ ²² ²³ This AI IDE Can Code For You – Windsurf AI Full Tutorial   https://dev.to/proflead/this-ai-ide-can-code-for-you-windsurf-ai-full-tutorial-4p94

²⁴ ²⁵ ²⁶ ²⁷ ⁵⁰ Windsurf AI Agentic Code Editor: Features, Setup, and Use Cases   https://www.datacamp.com/tutorial/windsurf-ai-agentic-code-editor

²⁸ ²⁹ ³⁰ ³¹ ³³ ³⁴ ³⁵ ³⁶ ³⁷ ³⁸ ³⁹ Claude Code Best Practices \ Anthropic   https://www.anthropic.com/engineering/claude-code-best-practices

³² General tips for developing a large project using Claude - Reddit   https://www.reddit.com/r/ClaudeAI/comments/1fl5j3t/general_tips_for_developing_a_large_project_using/

⁴⁰ A Practical Guide to "Vibe Coding" with Claude and MCP Tools   https://www.geigertron.com/blog/2025/4/4/a-practical-guide-to-vibe-coding-with-claude-and-mcp-tools

⁴¹ ⁴² ⁴³ ⁴⁴ ⁴⁵ ⁴⁶ Create a Personal Coding Agent with Claude Desktop and MCP tools   https://medium.com/@bhushan5640/exploring-mcp-tools-with-claude-desktop-for-programming-9b72eb277c7d

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