Contract with Agent, Billing Client direct?

[deeh]

Got a new gig at fairly short notice and received the contract yesterday.

Client is a large consultancy. Contract is with a small agent.
Contract states that I invoice the client direct, but all other communication is via the agency.
I've had no reason to think there's anything underhand but I'm still relatively new to it all so wondered if this was standard or odd... previously I've invoiced the agency

Specifically, the wording is

For the duration of the contract period outlined in Contract X – AGENCY will remain in control of the client management in line with its master agreement with CLIENT however it authorises the contractor to invoice directly for the services of the personnel listed.
The relationship between CLIENT and CONTRACTOR for this contract is limited to invoicing for the services of the specific personnel recognised by contract X and the relevant accounts payment contact required to complete this function as detailed below. For clarification CONTRACTOR accepts that AGENCY is not liable in any way for any financial aspect of this contract hence is excluded from the payment cycle.

Client are well established so I'm inclined to prefer the idea of invoicing them direct rather than having a middle man...

[northernladuk]

So the agent is really just getting a finders fee rather than getting paid and giving a cut to the contractor...

is not liable in any way for any financial aspect of this contract hence

So what about payment terms?

Problem is you have no contractual relationship with the client so what are the payment terms? If the payment terms are in the contract with the agent but they wash their hands of anything financial what happens if the client doesn't pay you? The client is under no obligated payment terms at all unless it's in the upper contract with the agency... but still... if the agent doesn't want anything to do with the finances who do you sue for breaching payment terms?

Doesn't sound right at all to me that. I'd get a contract lawyer on it pronto.

[deeh]

So the agent is really just getting a finders fee rather than getting paid and giving a cut to the contractor...

Exactly that. Agent bills client for their margin. I bill client for my day rate.
Contract specifies the margin and the day rate separately and the client, agency and myLtdCo all sign that contract.

Though the contract looks as though it's written as an agreement between me and the agent, but without me billing them - so, as you say, looks a little loosely worded and missing something that spells out the client's obligations to myLtdCo.

Hmm...

[SarahL2012]

Last time I was in this position my agreement was between myco and the client (PCG standard template). The agent just asked me to confirm each month how many days I'd work so they could bill their fee to the client.

[SueEllen]

Exactly that. Agent bills client for their margin. I bill client for my day rate.
Contract specifies the margin and the day rate separately and the client, agency and myLtdCo all sign that contract.

Though the contract looks as though it's written as an agreement between me and the agent, but without me billing them - so, as you say, looks a little loosely worded and missing something that spells out the client's obligations to myLtdCo.

Hmm...

Bad contract.

You really want a contract between you and one of the parties not both, otherwise you could end up being liable to both parties for the same thing if something went wrong.

Ideally the client should have a contract with the agency and you should have a contract with the client. There doesn't need to be a contract between you and the agency.

Unfortunately as the contract sounds a mess you need a contract lawyer not a contract reviewer to look at it.

[vwdan]

As per Sue, I had the 'finders fee' thing and it was great because I had nothing formal to do with the agent. Contract and payment was with client and they just dealt with the agent themselves.

Yours sounds horrid