Contract question... Services

[badger7579]

Anyone using the draft contracts provided by PCG? Am I right in assuming that a contract of services between my ltd and the agency is all I need???

Please help...


Admin note: just some further reading for anyone finding this through Google: Contract for Services checklist of clauses for IT contractors

[badger7579]

Anyone??.....

[Peter Loew]

The agency should provide that.

[badger7579]

So are you saying they should dictate the contract terms to me??? Aren't I giving them my T&C's??

[cojak]

You can send the PCG contract if the agency hasn't sent you one. It's more likely though that they'll send you one of theirs. You then pass it on to Bauer & Cotterell who will negotiate better T&Cs on your behalf.

That's the way it's usually done.

[thunderlizard]

Badger, you are the supplier so you should be providing the contract. Only let the agency write the contract if they absolutely insist.

Yes, the PCG contractor <-> agency contract is the one to use.

[badger7579]

Ok so one point of view says use the agencies contract and get it reviewed while another point is to give the agency my contract from PCG...

I'm happy to use the agencies contract and have it reviewed but does this have any implications for IR35?? Does it matter that I'm not using my own contract??

[oracleslave]

Ok so one point of view says use the agencies contract and get it reviewed while another point is to give the agency my contract from PCG...

I'm happy to use the agencies contract and have it reviewed but does this have any implications for IR35?? Does it matter that I'm not using my own contract??

As long as the agencies contract is reviewed and is considered IR35 friendly then it doesn't matter who provided it. Remember though that the contract should reflect the actual contract working practises as it is no point in having an IR35 friendly contract that is far removed from reality. Also if you look at recent IR35 cases the contracts that exists between the agency and the end client will also influence your IR35 status if it ever gets to court.

[thunderlizard]

As long as the agencies contract is reviewed and is considered IR35 friendly then it doesn't matter who provided it.

I disagree. There is much more to the contract than IR35. If you write the contract then you can specify all sorts of things like:
IP rights
Grievance procedure
Expenses policy
Exclusivity
Ability to resource the contract in whichever way you want
Ability to sell extras e.g. software licenses, hardware.
Bonuses for early completion
...only a few of which are IR35-relevant.

If you let the agency write the contract they will suck as much value out of it as possible, leaving you with an awful bum-on-seat just-charge-for-your-own-time contract that it's impossible to make a decent profit from.

[TheFaQQer]

Also if you look at recent IR35 cases the contracts that exists between the agency and the end client will also influence your IR35 status if it ever gets to court.

Which is more likely if the agency provide the contract. By no means is it guaranteed, but if they are providing both contracts, then they should be the same.