When is a 12 month contract not a contract!

**malvolio** · 23 March 2011, 09:19

Originally posted by Tunstall View Post

Hi all,

I desperately need some help with a major problem I've got. I'm a first time contractor and in the process of setting myself up

I got a contract job offer by an investment bank back in Febuary after direct face to face interviews. They explained that they use NSC Global as an agent to pay all their contractors (fair enough). They instructed NSC Global to issue a contract to me with the relevant daily agreed rate which they emailed to me and a counter-signed copy from them is in the post. So I've handed my notice in at BT and my last working day is April 8th. - This was over 2 weeks ago

I receive an email late friday night (18th) from NSC Global stating that the investment bank got their number wrong and this is now the new contract with new LOWER daily rate!

The lower rate is only my second worry here. How can they rip up a 12 month agreed and issued contract just like that!?? I'm sick with worry and not sure what to do...

pls advise...

many thanks

Jay

You're a contractor now, so negotiate. Ask them to explain why things have changed. Aim to get to a mutually agreeable rate. The contract variation isn't effective until you have signed it, since all parties have to agree any changes. However... The problem you face is that you only have one sanction, which is to walk away from the contract and start again. Unless the rate change is significant - i.e. more than the agency's margin - is it really worth worrying about it? Or is it better to go ahead with the offer, get established and look for a better raise at renewal when you've proved your worth?

Contracting is not all about rate, especially if you haven't done it before. Bad things happen and you have to face them down.

**jmo21** · 23 March 2011, 09:19

The life of a contractor...

First off have you read the first timers guides over on the right of the site?

My first thought would be that the agent is a lying ****er. If you have a contact at the IB (the name of the people that interviewed you), email them to find if THEY have actually reduced the rate.

Second, if it is a real reduction, unfortunately tulip happens, there will be clauses in the contract that state terminating at any time (maybe with notice, maybe not), stuff about not having to pay you if there is no work etc etc.

**SimonMac** · 23 March 2011, 09:19

Originally posted by Tunstall View Post

Hi all,

I desperately need some help with a major problem I've got. I'm a first time contractor and in the process of setting myself up

I got a contract job offer by an investment bank back in Febuary after direct face to face interviews. They explained that they use NSC Global as an agent to pay all their contractors (fair enough). They instructed NSC Global to issue a contract to me with the relevant daily agreed rate which they emailed to me and a counter-signed copy from them is in the post. So I've handed my notice in at BT and my last working day is April 8th. - This was over 2 weeks ago

I receive an email late friday night (18th) from NSC Global stating that the investment bank got their number wrong and this is now the new contract with new LOWER daily rate!

The lower rate is only my second worry here. How can they rip up a 12 month agreed and issued contract just like that!?? I'm sick with worry and not sure what to do...

pls advise...

many thanks

Jay

From what I understand is contract lengths are worthless as there is always a clause to say that they can cancel the contract, usally with 1 weeks notice. Contracts fall through before you get to start them, its par of the course I'm afraid

**craig1** · 23 March 2011, 09:27

As mentioned above, tell agency that you're going to speak to client to find out why the rate was lowered. This will get one of two reactions:

1. They'll panic a bit and tell you that that's not necessary with one of many made-up reasons
2. They'll start asking whether that'll be a problem and if you're still going ahead.

If 1. then they're stiffing you. TELL them that you want the original rate.
If 2. then they may be telling the truth but this gives you an in to negotiate a raise on the rate out of their cut, especially if they think you'll walk.

It can be risky stuff though, make sure you can afford any consequences before you play hard-ball!

**TheFaQQer** · 23 March 2011, 09:40

Originally posted by SimonMac View Post

From what I understand is contract lengths are worthless as there is always a clause to say that they can cancel the contract, usally with 1 weeks notice. Contracts fall through before you get to start them, its par of the course I'm afraid

Usually, it's with zero notice - getting a week might be a bonus.

**TheFaQQer** · 23 March 2011, 09:46

Originally posted by Tunstall View Post

The lower rate is only my second worry here. How can they rip up a 12 month agreed and issued contract just like that!?? I'm sick with worry and not sure what to do...

The contract isn't formed until both parties have signed it - you may have signed it, but I'll be you don't have anything from the agency that is signed as well. There's a reason for this, and you've just found out what it is.

If you are prepared to walk away, then tell the agency that you want the original rate because that's what was agreed etc. etc. and tell them you won't start without the original rate. They may offer the original, they may offer the new rate, they may offer somewhere in between.

If you have a client contact, speak to them - highlight how you are looking forward to starting, but are having some problems with the agency. That way, you get your side of the story in first.

If you can't afford to leave it (and I'd question why you are leaving permiedom to get into this if you can't afford to be suddenly out of work), then you can still negotiate with the agency. Just don't threaten something that you can't afford to do.

At the end of the day, regardless of the contract length, you can find that it turns out to be something that never starts, or ends early.

**SimonMac** · 23 March 2011, 10:21

Wouldn't it be risky talking to the client?

**jmo21** · 23 March 2011, 10:31

Originally posted by SimonMac View Post

Wouldn't it be risky talking to the client?

Possibly, contracting is full of risks though.

So either:
- bend over and take the hit
- fight back with the agent, with the only leverage being to walk away, and they might bin you anyway.
- speak to the client to try and get confirmation, possibly marking you as trouble straight away.

**Tunstall** · 23 March 2011, 11:52

Thanks all for your feedback.

Chris, thanks for the options, I just had a meeting with the agent and tried to take their 9.89% cut down to maybe 6% but they said they can't move as their books are open with the client and therefore all the contractors would ask for the same fee rate.

I've decided to "bend over" and take the hit as its only a 10% difference but its just the whole way of being treated like that and contracts not being honoured that has scared me off contracting a bit. The agent said if I continue with the first contract then he will terminate that immediately, pay me the notice period and then he'll make sure I never work for them or this bank again! Nice ay!!

The IB and agency have given me lots of apologies today but I'm still out of pocket( a little bit) and more to the point got a bitter taste in my mouth about working for them now after all this palaver!

Thanks again

When is a 12 month contract not a contract!