Take contract direct for end-client?

[stonecircle]

Hi,

I previously did a project for an end-client in the building industry via a major IT service company and an employment agency. This was over six months ago. The end-client have approached me directly for further work. Am I obliged to administer this via either the IT service company or agency? I have read the agency contract I signed and there's nothing relating to an introducing "lock-in" period (sorry I don't know the legal term). I am not privy to the agency <--> IT Service company agreement.

I'm fairly new to running my own contractor company. Can I simply do the work and invoice the end-client directly or must I always engage an intermediary agency to handle legal aspects or anything else? Obviously it's better for me to cut out the middle men as this reduces costs for the end-client, and potentially increases my day-rate and consultancy time.

Many thanks.

[TheFaQQer]

If there is nothing in your previous contract preventing it, then there is nothing to stop you from doing it.

As ever make sure you have a decent contract, and be prepared for a longer invoicing period than most agencies would offer. Also, removing the agency doesn't always mean there will be an impact on your daily rate - if the client has sorted out a cut in their costs, they may not be willing to pass on any of that saving to you.

[northernladuk]

The terms are normally under a Restriction of Trade clause so have a look to see if that is in there.

Also understand what your Opt in/out status was as this can affect the amount of time before you can go direct to a client.

All that aside I think 6 months is more than enough time so wouldn't worry. You could argue that because the client is willing to resource you directly then the agent has no part of this transaction and therefor cannot prove any kind of loss. Doesn't matter what handcuff you have if the agent isn't losing anything it will fail.

[SarahL2012]

Last time I did this I just asked the client to double check there was nothing in their contract with the agent that would prohibit it or mean they had to pay an agency fee. There wasn't so I tweaked one of the standard PCG templates as a contract.

It's right that it can take a lot longer to get paid though. I was sharing an office with the accounts team & even then it was always paid only after I'd chased....