Giant want me to personally indemnify them

[20years]

HI all,

I'm after a bit of advise, I've been contracting for 20 years now, and this is my first request for advise.

My client who has been using my co's service for the past 9 months has requested that I move my contract to a different intermediary, the new intermediary (giant precision services) is requesting that I personally (ie not my co) act as a guarantor for my co in respect of any losses that giant suffer. ie if giant suffers losses in line with the conditions in the contract and attempt to recover them from myco , and myco refuses or is unable to pay them, then I personally am liable for the losses.

Has anyone else seen this from Giant? and does anyone have any advice?

My feeling is to reject this ,but I suspect it will end up getting messy if I do (ie possible loss of contract).

[tractor]

...

See post below..

[Bacchus]

It could get messy, and you could lose the contract over it, but I would still tell them to shove it.

It's a B2B arrangement, let them know who your PI insurers are and insist that that clause is removed

[tractor]

...

HI all,

I'm after a bit of advise, I've been contracting for 20 years now, and this is my first request for advise.

My client who has been using my co's service for the past 9 months has requested that I move my contract to a different intermediary, the new intermediary (giant precision services) is requesting that I personally (ie not my co) act as a guarantor for my co in respect of any losses that giant suffer. ie if giant suffers losses in line with the conditions in the contract and attempt to recover them from myco , and myco refuses or is unable to pay them, then I personally am liable for the losses.

Has anyone else seen this from Giant? and does anyone have any advice?

My feeling is to reject this ,but I suspect it will end up getting messy if I do (ie possible loss of contract).

This is becoming more frequent. I have had this a number of times in the past several years. I suspect it's more advice from REC/APSCO to their members.

Have your contract professionally reviewed with one of the providers who negotiate for you. They will negotiate away the offending clause(es).

Why would anyone voluntarily sign away the protections that limited liability gives them? I doubt the clause would even be legally binding given that it cannot possibly be equitable but I have no idea whether there is any legal precedent to rely upon either way.

This is exactly the type of agency excess I would ask IPSE to get involved with if you are a member and it becomes a 'sign or walk' issue.

[20years]

Thanks I am a member of ipse and will be seeking their advice on this.

Just to add a bit more info, they want me to act as guarantor without limit on amount, or time. So they could try to implement my guarantee at any point in the future,even years after my contract has finished.

Not happy at all about this.

[borderreiver]

the new intermediary (giant precision services) is requesting that I personally (ie not my co) act as a guarantor

Red line. Never do this. Ever. And if you do, you're also making life more difficult for the rest of us.

Or do you think that the director(s) of Giant will, reciprocally, sign a personal guarantee that YourCo will be paid for your services, no matter what? Don't think so.

[tractor]

...

Red line. Never do this. Ever. And if you do, you're also making life more difficult for the rest of us.

Or do you think that the director(s) of Giant will, reciprocally, sign a personal guarantee that YourCo will be paid for your services, no matter what? Don't think so.

That is indeed always my first counter to them when they try this tactic. Usually, this is all that is needed to make them see what a stupid idiot request it is.

[SueEllen]

Thanks I am a member of ipse and will be seeking their advice on this.

Just to add a bit more info, they want me to act as guarantor without limit on amount, or time. So they could try to implement my guarantee at any point in the future,even years after my contract has finished.

Not happy at all about this.

The simple thing I say when I'm asked to do this is that:

"My company has the insurance policy of x million I don't. I personally don't have assets to that value. If I take this on then I would just go bankrupt meaning you would get absolutely nothing."

Then I get someone - Bauer and Cotrell or a solicitor - to get it removed from the contract.

[20years]

Thanks all, pretty clear that I shouldnt be accepting this , which was my gut feel when I read it.

Will have a discussion with them about it, hopefully they will be sensible about this and not risk annoying the client & myself.

Its double annoying as I won this contract without any agency input at all, and now they're generally just acting in a way that screws it up for everyone but themselves.

[TykeMerc]

As the others have said and you've agreed, those clauses are not acceptable in any form.

I'm also a tad surprised I'm aware of Giant being an Umbrella (with a poor reputation to some), but not that they have an Agency function. I'd look very hard at the type of agreement that's in front of you, there may be other unsuitable terms in that contract.