Agency cannot agree rate with end client: how do I proceed?

[northernladuk]

Even more unlikely you can go direct for a PS gig. They just don't have the frameworks for it.

Yes per day sorry.

I'd forget about the notion of inflation. I'm on the same rate as I was 8 year ago and was on less in the last gig. It doesn't really work to say rates have gone up just because time has passed.

[dweezil]

OP - did the agency have the first conversation over the role with client or yourself?

Appreciate that you have now appointed the agency to represent you and so "should not" direct approach.

As an outsider - appears that the agency is being greedy. Surely the agency and client have either a "min %" or "min £" agreement in place already?

This is a really poor situation for you given that you are on the bench.

Seems your options are

1. approach client direct, downside is that you burn bridges with agency
2. allow agency and client to debate whilst keep seeking other roles
3. understand how much YOU would have to contribute to the agent

Personally, I would pursue #2

I think I will go for a time limited option 2, considering option 3.

I also wondered whether I could give up something to the agent but work towards a contract in which I keep some of the Intellectual Property. I'm aware that introduces complexity so that could just become another insurmountable problem of course... but it allows me to get fair recompense from the contract.

[dweezil]

Even more unlikely you can go direct for a PS gig. They just don't have the frameworks for it.

Yes per day sorry.

I'd forget about the notion of inflation. I'm on the same rate as I was 8 year ago and was on less in the last gig. It doesn't really work to say rates have gone up just because time has passed.

I have worked direct for a PS gig before, but this only happened after the frameworks failed to deliver and could effectively be ignored. I was really being a bit careless with wording: you could read that as "talk to someone direct in order to find out an alternative route".

This role involves a fair amount of technical work which is at a higher level than the usual work I was doing back in 2010 at that site. I take your point on inflation though I don't completely agree. Yes rates have been held back but some people are still doing very well.

I've also worked at this site only 2 years ago at a much higher rate that this.

[northernladuk]

I have worked direct for a PS gig before, but this only happened after the frameworks failed to deliver and could effectively be ignored. I was really being a bit careless with wording: you could read that as "talk to someone direct in order to find out an alternative route".

Ahh yes got you.

This role involves a fair amount of technical work which is at a higher level than the usual work I was doing back in 2010 at that site. I take your point on inflation though I don't completely agree. Yes rates have been held back but some people are still doing very well.

I've also worked at this site only 2 years ago at a much higher rate that this.

But it's all about what the client is willing to pay. Some gigs are higher some are lower. I don't think inflation comes in to this at all.

Have a dig around itjobswatch.com . It's a scraping approach so only relies on the crap that are on the jobs boards but could give you an idea. The data goes back far enough.

I looked at SQL and that's stayed the same since 2006
https://www.itjobswatch.co.uk/contra...rate_histogram

Project Management does show an increase however
https://www.itjobswatch.co.uk/contra...0management.do

DBA's are static..
https://www.itjobswatch.co.uk/contracts/uk/dba.do

and so on.

[Cirrus]

You seem to be in a curious position where you think the agency is important to you. If that were not the case I would - Option 1 - go to the client and say "I'll work for £x - please find me an agent you use to engage me".

However I still can't see what is going on here. I can only assume the agency has said you can have the job but the rate is lower than you want. So Option 2 is to say 'Yes' so you can meet your cashflow obligations.

Is there any route available that bypasses the agency (direct, Agency B)?

[jbond007]

I have an agency problem: how should I handle the agency? Can I ditch them or am I liable for their costs?

I have told the agency I need a resolution: should I provide a deadline then walk away from them? This agency has spent a lot of time trying to make this deal happen. The role has been advertised for months inside IR35 but has been changed and is now outside (since about 2 weeks ago). Negotiations in respect of placing me would have started at that point.

What is the correct format in which to terminate with the agency. I am aware that I may be "burning bridges" but they will obviously lose the money they spent on negotiating which will have been considerable. Will I be liable for their costs?

Really the end client is expecting a lot for the money. They are paying a low rate given the work they want done. But I suspect I need to use a different agency, or go direct, to take up this work. Unfortunately I really need the work now.

I know this agency is asking for more commission than other agencies charge but they are a very good agency.

Surely, this is one of the most important thing. You get £50 less a day, £1000 less a month on average. But what about invoicing days lost in negotiating, looking for another contract and so forth ? You've mentioned cash flow issues in your other post as well, looks like you swallow £50 day less till you get your cashflow in better position and then can renegotiate at the point of renewal or when looking for another contract.

[GhostofTarbera]

Agency cannot agree rate with end client: how do I proceed?

You have probably lost many days invoicing already faffing about this, 1 week out Takes care of a reduced day rate for 6 months

[dweezil]

You seem to be in a curious position where you think the agency is important to you. If that were not the case I would - Option 1 - go to the client and say "I'll work for £x - please find me an agent you use to engage me".

However I still can't see what is going on here. I can only assume the agency has said you can have the job but the rate is lower than you want. So Option 2 is to say 'Yes' so you can meet your cashflow obligations.

Is there any route available that bypasses the agency (direct, Agency B)?

Paragraphs 2 and 3: those are discussed in other posts. The rate is low but the sticking point is the agency's cut. And I suspect that even if I offer to lower my rate that the payment system in operation would _still_ prevent a bigger cut to this agency.

In relation to paragraph 1. In my experience, and in my particular sector, a good relationship with a good agent who understands the roles, and the sector, and has many good contacts is valuable. And I do believe this agency has been good to work with. In other sectors perhaps the agency is irrelevant.

I know there are a load of dirty tricks some agencies will use e.g. say they are putting you forward then not put you forward, thus ensuring your CV does not go forward through another agent. I believe this agency won't do that sort of thing.

[northernladuk]

Paragraphs 2 and 3: those are discussed in other posts. The rate is low but the sticking point is the agency's cut. And I suspect that even if I offer to lower my rate that the payment system in operation would _still_ prevent a bigger cut to this agency.

That's an interesting spin I didn't think about. I would be very surprised indeed if their system stopped them doing this but now you mention it I guess it's possible.

Have you made them an offer yet?

Keep us appraised. I'd be very interested to know if there are more reasons than just the agent being greedy that are stoppers in situations like yours.

[oilboil]

That's an interesting spin I didn't think about. I would be very surprised indeed if their system stopped them doing this but now you mention it I guess it's possible.

Have you made them an offer yet?

Keep us appraised. I'd be very interested to know if there are more reasons than just the agent being greedy that are stoppers in situations like yours.

If its a public sector end client sourcing the work through one of the newer procurement frameworks then this may be the case, I know that a number of them stipulate a maximum of 7% mark-up can be made on any third party resourcing deal (some frameworks have a higher number). So on £500 a day the agent can charge £535 and make £35 in commission.

Reducing your rate to £450 (i.e. a drop of £50) would mean the agent can now only charge £481.75 and makes £31.75 in commission - only the client wins....

It's great finding one of these contracts with one of the big 4 as you know their day rates are huge so they have no qualms about giving you £900 a day as they then earn £60+ a day and get the job done by a happy contractor where as if you asked for a more "in range" rate of £600 per day they only get £36 and a "not miffed" contractor; on either rate you will still be less than their most junior resource is charged at anyway