Non-Compete Clause?

[NutSoft]

I initially signed on with The Agency to provide my services to Company A who sub-contracted me out to Company B working on their Customer site; the contract was for 2 years. Towards the end of the contract Company B decided that they no longer wanted to pay Company A for my services and insisted that I contract with them directly, using The Agency still; the contract was for another 2 years. Since the end of that contract I have had extensions, but after September my services are no longer required.
I am interested in providing similar but different services directly to the Customer and wondered how the contract extract below would impact that:

8 Good Faith
(a) The Consultant Company shall not during and for a period of 6 months following termination of this Contract [the "Relevant Period") for whatever reason that termination is effected perform services which are of the same kind as or of a materially similar kind to or competitive with the services provided under this Contract within the Relevant Period other than via The Agency either directly or indirectly or alone or jointly with another person full time or part time by contract or otherwise for:-
(i) the Client; or
(ii) any person on whose site the Consultant Company has performed services under this Contract.
(b) The Consultant Company shall procure that the Personnel shall not during the Relevant Period for whatever reason that termination is effected perform services which are of the same kind as or of a materially similar kind to or competitive with the services provided under this Contract within the Relevant Period other than via The Agency either directly or indirectly or alone or jointly with another person full time or part time by contract or otherwise for:-
(i) the Client; or
(ii) any person on whose site the Consultant Company has performed services under this Contract
(c) In the event of breach of clauses 8(a) or 8(b) the Consultant Company shall pay to The Agency as agreed liquidated damages a sum equal to LA lnternationa1's profit per week multiplied by the number of weeks the Consultant Company or the Personnel works in breach of clauses 8(a) or 8(b).
(d) The Consultant Company and its Personnel shall not communicate with the Client following termination of this Contract for a period of six months other than via The Agency.

[hobnob]

If you go direct to the customer (bypassing companies A and B) but still work through the same agency, you'll be fine. If you cut the agency out of the loop, and they catch you doing it, they'll try to get money out of you.

That's fairly standard in agency contracts. The safest option (to avoid the agency) would be to do a different contract for 6 months, then go back to the existing end client after that.

[DaveB]

The flip side is that the client will have very similar clauses in their contract with the agency.

If the customer wants you then they will have to negotiate with the agency as well. Less of a problem if it is their idea, more so if you are pitching the idea to them.

It's easier all round if you just stick with the agency. If you are happy wt the rate you are getting then the rest is between the client and the agency. Otherwise negotiate for a better rate.

[northernladuk]

You'd be pretty well caught by the handcuff if you want to go provide services that the agent or customer of the agent might normally put you forward for. There are caveats that the agent might not be able to bid for the work you are doing therefore aren't losing money and they handcuff won't stand but the agent will kick a right fuss up with the client and likely the client won't touch you.

When you talk about going direct you are missing a ton of key bits of information here so I am assuming that you would have to be on the PSL for the client to provide services. Most clients do this and they aren't easy to get on in some cases. If it's a public body you'll have to be on GCloud for example and they don't allow contractors via that route.
Also clients will tend to only engage LTD contractors via agencies so again unlikely you can go direct anyway.

As I say, that's assuming you've not looked in to it and are just forming an idea.

Best idea is as Dave says, just go with the agency. If you find the work and the contacts just pass them to the agency for a reduced margin and just get on with it. Agencies do actually providfe some value in the form of factoring and the like so I wouldn't be so quick to cut them out thinking it's all easy peasy.