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Advise on contracting via another ltd company

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    Advise on contracting via another ltd company

    Hi all

    So need some advise on any major risk of the following
    If I were to work for a client via another contractors ltd company instead of a agency then what would the main risk for me be? One I can think of is there is more of a chance that the contractor closes his/her company then a agency shutting down.
    What I mean by this is my ltd company is contracted via another contractors company.
    Anything else to bare in mind?

    Thanks
    Last edited by xenomorph; 3 June 2020, 20:33.

    #2
    Originally posted by xenomorph View Post
    Hi all

    So need some advise on any major risk of the following
    If I were to work for a client via another contractors ltd company instead of a agency then what would the main risk for me be? One I can think of is there is more of a chance that the contractor closes his/her company then a agency shutting down.
    What I mean by this is my ltd company is contracted via another contractors company.
    Anything else to bare in mind?

    Thanks

    Without more details...


    All of my contracts with an Agency have required me to be a director and min 50% shareholder of the PSC signing the contract with the agency.

    If the chain is (your) PSC -> PSC 2 -> Agency -> End client then you cannot sign the agency's contract. I would expect the agency to kick up a fuss.

    If they see it as more akin to a brolly structure, they will probably want the "brolly" to be FCSA "approved" and therefore, kick up a fuss.

    M

    Comment


      #3
      Originally posted by xenomorph View Post
      Hi all

      So need some advise on any major risk of the following
      If I were to work for a client via another contractors ltd company instead of a agency then what would the main risk for me be? One I can think of is there is more of a chance that the contractor closes his/her company then a agency shutting down.
      What I mean by this is my ltd company is contracted via another contractors company.
      Anything else to bare in mind?

      Thanks

      Is it a client you have worked for recently through an agency?

      If you are working as a sub-contractor, you need to have a contract drawn up between your company and the other contractors company. You need to do due diligence on them. You need to ensure you understand and are happy with the risks.
      I'm perfect, in a very specific and limited way.
      Hands... out infractions
      Face... the music
      Space... between the ears

      Comment


        #4
        Originally posted by mjcp View Post
        Without more details...


        All of my contracts with an Agency have required me to be a director and min 50% shareholder of the PSC signing the contract with the agency.

        If the chain is (your) PSC -> PSC 2 -> Agency -> End client then you cannot sign the agency's contract. I would expect the agency to kick up a fuss.

        If they see it as more akin to a brolly structure, they will probably want the "brolly" to be FCSA "approved" and therefore, kick up a fuss.

        M
        Hi

        So no there is no agency in this situation. So would look like:

        My LTD Company > Another contractors LTD Company > End Client.
        So essentially the contractor is bidding for a contract with the client and then my company works for the client via the other contractors ltd company.

        Comment


          #5
          Originally posted by WTFH View Post
          Is it a client you have worked for recently through an agency?

          If you are working as a sub-contractor, you need to have a contract drawn up between your company and the other contractors company. You need to do due diligence on them. You need to ensure you understand and are happy with the risks.
          Yes currently I am working for them via agency.

          Comment


            #6
            Originally posted by xenomorph View Post
            Yes currently I am working for them via agency.

            OK, alarm bells ringing now.

            What does your contract with them say about you going to the client and bypassing the current agent?
            I'm perfect, in a very specific and limited way.
            Hands... out infractions
            Face... the music
            Space... between the ears

            Comment


              #7
              Originally posted by xenomorph View Post
              Hi

              So no there is no agency in this situation. So would look like:

              My LTD Company > Another contractors LTD Company > End Client.
              So essentially the contractor is bidding for a contract with the client and then my company works for the client via the other contractors ltd comany.
              Payment terms - will it be paid when they get paid, or can they afford to have separate terms with you?
              Do you trust them to actually pay you?

              Business can ruin friendships (this is from experience!) so, if this other contractor is a friend, be aware that if the business relationship goes sour it's likely to affect your friendship too.

              Does the contractor have the right in their contract with the agency to supply a sub-contractor?

              Comment


                #8
                So there are no non-compete clauses in my current contract so that part is fine.

                This is all early talks at the moment, so not seen any contracts.
                However yes I would not be comfortable with getting paid only after they got paid. So this is one thing I will mention to them.

                Originally posted by ladymuck View Post
                Does the contractor have the right in their contract with the agency to supply a sub-contractor?

                @ladymuck so the other contractor wont be via agency anymore. they would directly be contracted with the end client to supply people via outcomes based contract.
                Last edited by xenomorph; 3 June 2020, 11:01.

                Comment


                  #9
                  Originally posted by xenomorph View Post
                  @ladymuck so the other contractor wont be via agency anymore. they would directly be contracted with the end client to supply people via outcomes based contract.
                  Apologies, missed that

                  Comment


                    #10
                    Apart from payment terms is there anything else I should be aware of?
                    Anything to cause problems.

                    Comment

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