I'm an agency, what now?

[pauljh]

Hello,
After just becoming an Contractor the head of the project has asked me if I know of other contractors who could help, I do know one who is suitable and am unsure if I'm being a money grabbing git by getting the new contractor (assuming he gets the position) to go "through" me for invoicing and me charging 5% (like an agency), I will be doing the negotiate etc and I know what the contractor wants and what the client is willing to give (due to the fact I am currently a contractor there). Am I being a greedy contractor?, should I just pass over the number of the client to the contractor and expect a pint?

Regards

Paul

[DaveB]

If all sides are happy with that then go for it. Nice IR35 pointer in the process - Multiple concurrent income streams. If you are a PCG member there should be some suitable contract templates available on the website.

Be aware that you will have to deal with the VAT issues involved and if you are registered for the FRS then it could end up costing you money.

Make sure you agree payment details etc in advance and that you both understand whats involved.

[Peoplesoft bloke]

This is the deal I have on my current gig with the guy who got me the gig. Works well for both of us. Make sure you're both dealing with people you know you can trust though - we're operating on that basis so we haven't done anything in terms of Agency opt-out (or in) paperwork and the like.

[thunderlizard]

you'd be crazy not to! But if poss, be a consultancy rather than an agency.

[DodgyAgent]

Hello,
After just becoming an Contractor the head of the project has asked me if I know of other contractors who could help, I do know one who is suitable and am unsure if I'm being a money grabbing git by getting the new contractor (assuming he gets the position) to go "through" me for invoicing and me charging 5% (like an agency), I will be doing the negotiate etc and I know what the contractor wants and what the client is willing to give (due to the fact I am currently a contractor there). Am I being a greedy contractor?, should I just pass over the number of the client to the contractor and expect a pint?

Regards

Paul

Welcome, you are one of us now. No more long hours working for a manger you dont like, you can put your feet up, buy yourself an Audi TT, gel your hair and talk down to contractors.. well done!

[Pondlife]

Things to consider

Do they have their own limited or will they be an employee of yours?
If the latter, you're going to have to legally pay them holiday, sick, maternity out of your 5% (plus Emp NI)

Will they be covered by Your Cos indemnity insurance if they screw up?

What are the payment terms? If you're paying them monthly but have 90 days payment terms with the client, you're going to have to miss out on the interest for about £30K, plus if anything goes t1ts up, that's how much you're out of pocket.

Will the combined turnover force you out of FRVS. How much will you lose by this?

I'm sure that DA has a pre-prepared list of things that agents do to justify there huuuge margins. All of which you have to cover in that 5%

[Peoplesoft bloke]

All good points Pondlife - for his 5% my "agent" doesn't really do anything much - it's just his finders fee and we are sharing the risk on payments - he's paying me when he gets paid. I agreed this because it suited me - good gig, good rate. I also like the idea that I am working for a limited co (mine) which works for another limited co (his) that has contracted to provide services. We've used the PCG contracts.

[Troll]

Hello,
After just becoming an Contractor the head of the project has asked me if I know of other contractors who could help, I do know one who is suitable and am unsure if I'm being a money grabbing git by getting the new contractor (assuming he gets the position) to go "through" me for invoicing and me charging 5% (like an agency), I will be doing the negotiate etc and I know what the contractor wants and what the client is willing to give (due to the fact I am currently a contractor there). Am I being a greedy contractor?, should I just pass over the number of the client to the contractor and expect a pint?

Regards

Paul

I'd expect a day's rate as a 'finders fee' in cash in brown envelope + 5% of billed invoice ongoing

HTH

[DodgyAgent]

Things to consider

Do they have their own limited or will they be an employee of yours?
If the latter, you're going to have to legally pay them holiday, sick, maternity out of your 5% (plus Emp NI)

Will they be covered by Your Cos indemnity insurance if they screw up?

What are the payment terms? If you're paying them monthly but have 90 days payment terms with the client, you're going to have to miss out on the interest for about £30K, plus if anything goes petals up, that's how much you're out of pocket.

Will the combined turnover force you out of FRVS. How much will you lose by this?

I'm sure that DA has a pre-prepared list of things that agents do to justify there huuuge margins. All of which you have to cover in that 5%

sitting by the pool sipping a penal colada to name but one

[oracleslave]

sitting by the pool sipping a penal colada to name but one

Penal (originally Peñal) is a town in southern Trinidad. It lies south of San Fernando and Debe, and north of Siparia. Originally a rice and cocoa producing area, Penal has grown into an important town in the past few years and is now a desirable place for corporate expansion.


Yeah I fancy a drink out there as well.