Advice for a new contractor

**BolshieBastard** · 13 September 2015, 08:22

Originally posted by nflannery View Post

I have been a contractor now for around a year but I am in a tricky situation. When I took on the current contract the agency made an error and didn't include VAT on their quote to the client (or so they say). I took on the contract as it was interesting and it was only £25 difference to me but the agency make little money due to their error. My issue now is that I would like to continue on my contract but I don't want this agency to represent me anymore as the consultant I deal with doesn't seem interested. I started my contract on 31/03/2015 and I have had it extended previously as it was a 2 month initial contract. I work in IT and I am SharePoint Consultant with 11 years experience and I have 3 years experience with Dynamics CRM ut I feel this agency is underselling me and I could get an extra 100 per day if I don't renew and take another contract.

What are the consequences of negotiating myself?

Your contract will likely have a handcuff clause meaning you cannot work for the client either directly or via another agent for a period of time (usually 6 months).

You really should search harder because this question has been asked many times before here.

**northernladuk** · 13 September 2015, 10:53

No consequences to worry about as it won't happen.

**SueEllen** · 13 September 2015, 16:41

If the client wanted to deal with you direct they would approach you. As they haven't they don't want to deal with you.

**uk contractor** · 13 September 2015, 22:20

Sharepoint & Dynamics CRM contractors are ten a penny no wonder the agent wants you to leave they can get 50 people tomorrow with similar skills. Neither are niche skills anymore either & rates are dropping rapidly. I have worked on several major sites in London where they are full of far east asia import workers doing these roles for just above minimum wage (yet the outsourcer/agency is raking in massive profits).

OP you have no hand to play you think you do but the market reality is massive oversupply=take it or leave it someone will if you don't!

Your best option is speak to the agency again & agree a 50% each rate VAT compromise (so you both take a small hit) & hope the agency wants to retain you (I think you will find they want you to leave as your a loss leader to them) or man-up & walk away from this client. You have no real power the agency could just refuse to renew you the client cannot deal with you directly not sure where you think you have any leverage in this scenario either!

No agency will maintain a lower than expect profit margin just to keep the client happy indefinately its certainly not how they operate unless the end client is likely to give them a lot of future work.

**NickNick** · 14 September 2015, 11:54

I had something similar happen to me some years ago. Contract with Agency had my day rate +VAT; I worked on client site for a couple of months, and got a renewal. I got a call from the agency one day stating that they had forgot to add VAT to their invoices to the end client and so wanted me to pay back the difference over the last two months. I politely declined.
They sacked the person involved in handling the paperwork between them and end client and 1 month later I got another renewal at the same day rate. I can only assume that they realised they didn't have a leg to stand on and were just trying it on.

NN

**TheFaQQer** · 14 September 2015, 13:58

Originally posted by nflannery View Post

What are the consequences of negotiating myself?

Negotiating with whom?

Your current client aren't going to be that interested in giving you a rate increase unless you can justify it and they can't replace you at the drop of a hat.

The agency aren't going to be interested because they make little to no money off you, so why would they be looking to cut that further for you?

If you mean "would I be better off leaving the contract and getting a new one?" then probably. You are convinced that you can get £100 a day more, so either give notice in line with your contract, or at the end of the contract go find that higher paying role.

Good luck, whatever you do.

Advice for a new contractor