Rate cut - how to deal?

[pmeswani]

Jesus - spelling and grammar!!!

And Capitalisation.

[Joe Bloque]

Erm am I missing something here ? You - presumably - are not an Employee of the Client and therefore do not get "Pay" .
You have a commercial contract with a Company (Agent), unrelated to the Client , for which you invoice your fees .
If the AGENTs Client wishes to reduce their financial arrangement thats a commercial agreement between Agent and Client. Obviously the Agent will attempt to pass it all on to you - thats if the rate cut even exists.
Among your choices are :
accept everything agent says and roll over
suggest Agent reduces his commision and takes the hit / some of the hit
say no and see what happens
Ultimately its a commercial decision affecting revenue income for your Company , balanced against current economic climate , and potential for repeat work.
In addition a letter from HR saying Mr X must accept a reduction in his pay - surely smacks of an employment pointer ? In the hopefully unlikley event of the Agent not paying invoices , would end Client pay instead ? I think we know the answer to that..............

Thanks rpgpgmr1. You've riased some good questions and it would be interesting to see what agent will say. But i want to know the dynamic of this relationship between my agent and the client.

First, the cut was not communicated - i dont mind that - but what gets my suspicion is why cut before second extension - when it did not matter for first extension. And both were successive extensions of 4 and 6 weeks. As i 've said i dont mind to take the hit but as Boris lashed out other day - I don't want to be a f*****g fool. Wish i 'd get such chance to speak to my agent. It would be hilarious!

Thanks for all the responses.

[BolshieBastard]

Sounds like it could be agent BS.

Any rate cut should be communicated to you by the client. My advice would be to talk to them. Also try and get the agent to absorb part of any cut into their margin.

If you are direct, certainly but, with the usual client - agent - contractor arrangement, certainly not.

In these circumstances, discussions will be between agent and contractor.

Erm am I missing something here ? You - presumably - are not an Employee of the Client and therefore do not get "Pay" .
You have a commercial contract with a Company (Agent), unrelated to the Client , for which you invoice your fees .
If the AGENTs Client wishes to reduce their financial arrangement thats a commercial agreement between Agent and Client. Obviously the Agent will attempt to pass it all on to you - thats if the rate cut even exists.
Among your choices are :
accept everything agent says and roll over
suggest Agent reduces his commision and takes the hit / some of the hit
say no and see what happens
Ultimately its a commercial decision affecting revenue income for your Company , balanced against current economic climate , and potential for repeat work.
In addition a letter from HR saying Mr X must accept a reduction in his pay - surely smacks of an employment pointer ? In the hopefully unlikley event of the Agent not paying invoices , would end Client pay instead ? I think we know the answer to that..............

IMO yes, you are missing something. The agent gets a sum off the client. The agent pays the contractor. Its semantics to claim as a contractor you dont get 'pay.'

While the agent may take up some of the hit, if they're already on low margins, they wont entertain it.

No harm in asking though. IMO where a client wants a rate cut, they normally get it unless you can prove you're indespensible which, is pretty rare.

[Joe Bloque]

Agent called up Friday afternoon and it went something like this

P1mp: Hi Joe, Client is interested to know if you can take 5% cut.
Me: Sorry P1mp- you've had a misleading information. There are no ratecuts - i have confirmation from my manager all extensions are on existing terms.

P1mp: I think they are regretting the decision. They are only cutting down rates for IBM and Accenture contractors.

Me: I'm really surprised they are doing this in the last week before extension.
P1mp: Yeah, they are really strange and they do things in last moment.

Me: This is an extension not 'Renewal' of the contract. As i said there are no rate cuts and terms continue to be same.
P1mp: Ok then i will get back to the cleint and tell you are interested in continuing the same terms. They are really regretting doing this.

Me: I'm sorry[Just to save P1mp further embarassment] you got this misleading email

P1mp: I will go back to the client and say you are interested in continuing on same terms. Have a lovely weekend.
Me: You too [T**t]

I haven't asked Manager abt ratecuts yet. Got to give it to this guy for 'producing' email with a client co HR email address.

Gentleman,

It's been a previlege peeping into your conversations .

My question now is. Come next extension - can i nail this guy with 'Breach of contract' citing that dodgy email.

Thank you.