Agency rates negotiation

[starburst89]

Do HR have anything to do with contractors rate negotiation or is this between myself and the agent? The agent keeps saying that he needs to go back to HR to discuss rate negotiation...

[LondonManc]

Do HR have anything to do with contractors rate negotiation or is this between myself and the agent? The agent keeps saying that he needs to go back to HR to discuss rate negotiation...

There are two negotiations. One between you and the agent and one between the agent and client co. If you're happy with the first gig, tell him you're taking it. DO NOT, under any circumstances, divulge details of either gig to the other agent. If the rate on gig one is acceptable, tell the agent on gig two that you're going to accept it if they cannot improve their offer.

[missinggreenfields]

So.....was offered the second contract. Was told I was put forward for £400 and now agent is saying its £375 as there are other candidates who are cheaper...so why put me forward for £400 in the first place? Initially he said that he would try for £450 and then said that the client said that was a bit tight and then I said £425 and he said they have came back with £375. Something seems a bit off. He knows I have another offer waiting at 400 but was willing to wait for the outcome of this one as it is a longer contract length. Agent up to his tricks again you think?

Who knows what the agent and / or the client is up to?

Take the role that will give you the most satisfaction. If that means you settle for £375 a day and you're happier than you would be at £400 a day, then I would take the lower rate to be happier - you're a long time dead, after all.

[candlewax]

Correct. The negotiation is about reducing the agents profit margin. The client will likely have a rate card and that's it. The wiggle room is how much you can take off the agent. Newbies often get stung very hard and can easily be 20% upwards because the new guys just don't have a clue.

If they are on a fixed margin then there is no negotiation so much easier and their margins are pretty low already.

Anyone have any experience discussing the agency's percentage when the contracts say not to?

[mattfx]

Anyone have any experience discussing the agency's percentage when the contracts say not to?

Yes - ask them outright if they are on open book or a fixed rate with the client. Straight up ask. They'll come back and say open book anyway, but this is the only professional way you can handle it. It's up to you to interpret if they're fibbing or not.

OP after I caught up with this thread i'd say take the first offer - second one sounds like a ballache. Also a months notice period for a contract is a very, very good notice period. Most (in infrastructure anyway) seem to be a week or two.

[candlewax]

Yes - ask them outright if they are on open book or a fixed rate with the client. Straight up ask. They'll come back and say open book anyway, but this is the only professional way you can handle it. It's up to you to interpret if they're fibbing or not.

It already came out from the client and the agency's shouting "breach of contract!". I'm not sure about their legal recourse or whether they'd pursue it.

[CatOnMat]

Yes - ask them outright if they are on open book or a fixed rate with the client. Straight up ask. They'll come back and say open book anyway, but this is the only professional way you can handle it. It's up to you to interpret if they're fibbing or not.

OP after I caught up with this thread i'd say take the first offer - second one sounds like a ballache. Also a months notice period for a contract is a very, very good notice period. Most (in infrastructure anyway) seem to be a week or two.

Although interestingly I recall reading recently that having NOT having a notice period can actually be preferable from an IR35 perspective, as it helps prove that you are not an employee: MBF Design Services Limited vs HMRC: IR35 is why it pays to have no notice period :: Contractor UK

Personally if everything else is IR35-friendly I must admit I quite like the notice period on their side to stop clients from getting too trigger-happy and also one on my side to reassure them that I'm less likely to leave them in the lurch while still giving me the option to terminate just like they have, but I suppose it is a risk factor to allow for.

[northernladuk]

Anyone have any experience discussing the agency's percentage when the contracts say not to?

I'd start a new thread and give us a bit more detail about what the contract says and what you've done. I think mattfx has the wrong idea and I'm a little confused.

Saying that if a clause in the contract says don't so something and you have I'd expect to be walked and threats of being sued for an losses the agent has incurred at worst. Anything less than that is a bonus.

[mattfx]

Although interestingly I recall reading recently that having NOT having a notice period can actually be preferable from an IR35 perspective, as it helps prove that you are not an employee: MBF Design Services Limited vs HMRC: IR35 is why it pays to have no notice period :: Contractor UK

Interesting - I wonder whether it passes QDOS or not? Thanks for the heads up!

[mattfx]

I'd start a new thread and give us a bit more detail about what the contract says and what you've done. I think mattfx has the wrong idea and I'm a little confused.

Saying that if a clause in the contract says don't so something and you have I'd expect to be walked and threats of being sued for an losses the agent has incurred at worst. Anything less than that is a bonus.

Sorry if I wasn't clear - the last couple of agencies I've spoken to I've asked them if they've been on an open book (fixed percentage) or fixed rate with the client. They're been forthcoming when questioned in the main. I could be approaching this incorrectly, though.