Direct Advice

[coolpran]

to oraclesmith & VectraMan:
I have posted a new thread with a similar but not exact situation.
http://forums.contractoruk.com/thread14811.html
Could you have a look at that thread and let me know the way to proceed.
Also, would you be able to send a template agreement where in you have added the spec & IPR clauses.

[oraclesmith]

Hi,

I had a look at the scenario and I think you need to be clear with the client what they meant when they said the work has to be billed by an invoicing company. What they could have meant was that the work must be invoiced properly, in which case you could easily set up a limited company which becomes one of their suppliers and send them one of your own invoices.

Alternatively, she can invoice them as a sole trader (eg. Mrs Coolpran trading as Myco Solutions) which for the relatively small amounts we're probably talking about to start with may be a good option. The accounts etc are simpler too. It's surprising how many small firms are actually sole traders or LLP's without making it to limited company.

Can you clarify the invoicing company point please?

[XLMonkey]

All good advice, one additional point regarding daily rates - it is (moderately) common practice, even on fixed price contracts to provide a daily rate. This is so that the client has an idea of the likely cost of any extras that they may come up with as the work proceeds. Therefore, its absolutely fine to say:

My firm price for the work as set out in the terms of reference is £xx,xxx

Additional work will be charged on a daily rate of £yyy

Your daily rate should roughly reflect your estimate of the effort involved to do the work, though you may want to take your risk premium off (since time and materials work carries less risk than fixed price work).