Originally posted by JohnM
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Consultancy witholding 20% of each invoice in new contracts
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'CUK forum personality of 2011 - Winner - Yes really!!!! -
Originally posted by northernladuk View Post
To be fair I've done three public sector gigs in not too long a time, including being on one now, and I've never seen it. I'll bet this is nothing to do with the client and just the consultancy covering themselves whether their client is public or private.In Scooter we trustComment
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Originally posted by The Spartan View Post
Same here, last 3 gigs have been SC cleared roles within government through a consultancy. This is more to do with the consultancy in this case, however I thought that the whole point of status determinations was to clarify if a role was inside or outside IR35? If a role is outside why is it necessary to withold 20% of the contract value just incase?"You’re just a bad memory who doesn’t know when to go away" JRComment
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Originally posted by The Spartan View Post
Same here, last 3 gigs have been SC cleared roles within government through a consultancy. This is more to do with the consultancy in this case, however I thought that the whole point of status determinations was to clarify if a role was inside or outside IR35? If a role is outside why is it necessary to withold 20% of the contract value just incase?merely at clientco for the entertainmentComment
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I've had this in fixed price contracts but never in T&M contracts for obvious reasons - performance is day-to-day, not per deliverable. As far as IR35 goes, I doubt it moves the dial much (it's motivated by commercial reasons related to IR35 rather than the nature of the work and working practices), but it certainly gives the consultancy an opportunity to claw money back.
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Originally posted by mallisarealperson View PostIs this not the same as a permie getting or not getting their bounus.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by eek View Post
See the CEST criteria for a contract being outside IR35 - one of the criteria is financial risk.See You Next TuesdayComment
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Originally posted by eek View Post
See the CEST criteria for a contract being outside IR35 - one of the criteria is financial risk.
As to what this is, it's reminiscent of snagging in the construction industry. Burden of proof would be with the consultancy to evidence that work was not to standard, rather than contractor has to prove it was, unless the contract wording stated otherwise. One for a legal professional probably.
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I've seen this before as a completion fee. If you don't finish the project within the given criteria you won't get it etc.
Has been quite rare though I suspect may become more common as agencies search for silver bullets.
Personally educating clients and contractors around substitution, MOO and PandP should yield a more consistent result.Comment
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