Taking on a Contractor

[tvr450]

Hi Guys

It looks like I have won a new contract with a large company for at least a year. Trouble is, I already have a good contract I do not want to leave.

So I want to take soemone on to do the second contract for me.

Can anyone see any problems with doing this - the end client company are happy for me to do this, BTW.

[northernladuk]

You don't want to take on a contractor. Right set of lazy money grabbing winkers they are!!

Just kidding...

You should always have a right to substitution in your contract so (in theory) no client should have a problem with you sending someone in on your behalf.

Up to you now to advertise the role, pick a candidate you trust to put forward, think about a rate you are willing to pay him, get a contract drawn up and then introduce them to the client.

[quackhandle]

Up to you now to advertise the role, pick a candidate you trust to put forward, think about a rate you are willing to pay him, get a contract drawn up and then introduce them to the client.

Wow, if only there was some sort of company or person that could process all that for you, they could make quite a killing.

qh

[Contreras]

What not to do:

If the contract has a fixed price element based upon deliverables, do NOT sub-contract on a T&M basis.

[TheFaQQer]

Can anyone see any problems with doing this - the end client company are happy for me to do this, BTW.

The only problem that I could see would be whether you risk going over the threshold for FRS, if you are in that.

Make sure you get the payment terms agreed properly - if you have to pay your subbie before you get payment from the agency, ensure that you aren't going to hit cashflow problems.

Make sure the subbie has adequate insurance.

Use the PCG standard contract.

[mudskipper]

The only problem that I could see would be whether you risk going over the threshold for FRS, if you are in that.

Make sure you get the payment terms agreed properly - if you have to pay your subbie before you get payment from the agency, ensure that you aren't going to hit cashflow problems.

Make sure the subbie has adequate insurance.

Use the PCG standard contract.

Also, if you're on FRS and your sub contractor is VAT registered, you'll have to pay that VAT, or leave the scheme.

[d000hg]

Why would a client be happy to go through the process of selecting a new contractor, only for him to put in a substitute before ever starting the gig? You'd think they'd just select another candidate.

[tvr450]

I am not on FRS as this contract is based in the USA, but they have UK offices so I should check into whether I need to charge VAT I guess.

Thanks for the TIP on T&M.

doohg - I wrote the application for them a few years ago and the supplier has disappeared, so there are not many people that know the system - they would like me available, even if not day to day.

[TheFaQQer]

I am not on FRS as this contract is based in the USA

I'm not convinced that those two things go together.

but they have UK offices so I should check into whether I need to charge VAT I guess.

You need to see who the contract is with - if it's a UK entity, then you have to charge VAT if you are VAT registered. I'm not sure about invoicing the US direct.

[TheFaQQer]

Looking here, if you are in the UK and are VAT registered, then you must charge VAT.

If you are in the UK and the place of supply of your service is in the UK, you charge and account for VAT according to UK VAT rules.