Contractual Agency claw back if client doesn't pay

[simes]

Hi,

I had a brief look through this particular forum for something similar, and indeed by searching for the agency involved.

Has anyone had any experience of an agency contract clause that says, if during 120 days after a contractor invoice has been paid, for any reason the client hasn't paid the agency, that clawback from the contractor is levied?

If the contractor's contract is with the agency, then why should the contractor be involved in inter client-agency invoice squabbles?

Thanks in advance.

[missinggreenfields]

I've had agencies try to include something similar, but I've never had one succeed in keeping the clause in there.

If you aren't opted out correctly, then it's a moot point anyway, since you have to be paid for the work that you do.

Sometimes, it's not a squbble between agent and client though - agent pays you on 7 day terms. Client turns round 10 days later and says that the work that you did was rubbish, so they refuse to pay the agency. The squable may be between the agency and client, but the cause of the problem is your shoddy work.

[gables]

I've had agencies try to include something similar, but I've never had one succeed in keeping the clause in there.

If you aren't opted out correctly, then it's a moot point anyway, since you have to be paid for the work that you do.

Sometimes, it's not a squbble between agent and client though - agent pays you on 7 day terms. Client turns round 10 days later and says that the work that you did was rubbish, so they refuse to pay the agency. The squable may be between the agency and client, but the cause of the problem is your shoddy work.

Um, then maybe they shouldn't have signed off the timesheet\work

[missinggreenfields]

Um, then maybe they shouldn't have signed off the timesheet\work

Maybe they shouldn't. But it's not uncommon that the timesheet is signed as an indicator that work was completed, not that the work was completed to any agreed standard.

[simes]

Thanks people.

Indeed the person who came to me with this query did in the end have the clause made specific to 'shoddy work', and to ensure that it was not left there as was, and open to abuse to something more akin to late payments from the client.

And since she is not a shoddy worker, hopefully there should not be a problem.

Cheers all.

[gables]

Maybe they shouldn't. But it's not uncommon that the timesheet is signed as an indicator that work was completed, not that the work was completed to any agreed standard.

This is true, but it is more commonly the basis for which an invoice is paid, if quality of work is also to be a measure that should be written is some way and signed off to that effect, otherwise down the line the client can just turn around to the agent and say it's shoddy work even if it's not as an excuse not to pay.

[missinggreenfields]

This is true, but it is more commonly the basis for which an invoice is paid, if quality of work is also to be a measure that should be written is some way and signed off to that effect, otherwise down the line the client can just turn around to the agent and say it's shoddy work even if it's not as an excuse not to pay.

I don't think it's particularly common for the agency to pay an invoice without knowing whether the work has been completed or not, whether to an agreed standard or not.

When I was a permie, I took over one project from a contractor who had disappeared after day one. Three months later, the agency rang up to ask about his extension because he'd invoiced them for the three months and they had been paying without checking with the client at all.

[simes]

I don't think it's particularly common for the agency to pay an invoice without knowing whether the work has been completed or not, whether to an agreed standard or not.

When I was a permie, I took over one project from a contractor who had disappeared after day one. Three months later, the agency rang up to ask about his extension because he'd invoiced them for the three months and they had been paying without checking with the client at all.

I have only worked for the larger blue chip types, and pretty much every time, the timesheets have had to be signed by the programme manager which then tied into some self billing system. So I have never heard of the above. Unbelievable.

Amazing story.

[missinggreenfields]

I have only worked for the larger blue chip types, and pretty much every time the timesheets have had to be signed by the programme manager which then tied into some self billing system. So I have never heard of the above. Unbelievable.

Amazing story.

The client was a multinational (you don't get Oracle Consulting in unless you have money to burn!), and the agency weren't small - it was part of this happening that made me think that I could do this contracting lark. Worst case scenario, just defraud the agency for a few months!