Rate Anxiety - Is the agent having a laugh?

[vordaka]

Hi,

I wonder if some more experienced heads can advise on this, I am a first time contractor after 13 years as a permie and I don't think I've dealt with the agents as well as I might have.

Basically an agent contacted me with a contract that sounded very interesting and specified a single rate. I was invited to an interview and in the confirmation e-mail from the agent they said that they had put me forward at another rate (£50 less per day than we'd previously discussed) - they didn't say they'd reduced it or give a reason, they just said:

"I have put you forward at rate £X"

I immediately responded saying that they had originally discussed the contract with me at the higher rate and that I wasn't happy at being put forward at the lower rate. The response from the agent was something like:

"Let me worry about the rate "

I took that to mean that the rate they put me forward at was not cast in stone and that it would be easy to sort out should an offer arise.

Subsequently I was offered the contract at the lower rate; I again said to the agent that they'd previously discussed a higher rate with me to which they responded that they had put me forward at the lower rate and it is no longer negotiable.

I rather naively said OK as this was the only offer on the table.

It then turned out that the contract hadn't yet been approved and that I'd have to wait 1.5 weeks for it to be approved (apparently this will come through on Monday now) - the end user did confirm in a call with me directly that they are very keen to get me onboard; I don't actually have a contract in-hand yet though. This has given me 1.5 weeks to contemplate and a number of other things have happened in that time:

1) Other agents have approached me about the same contract (they're looking for multiple contractors for it). I asked them what the available rate was for someone with my experience, and they quoted a minimum of the rate that the other agent had quoted me in the first place (i.e. without the £50 discount) up to £150 more per-day than the first agent quoted. This leaves me feeling stupid for saying OK to agent 1 in the first place and less than enthusiastic about continuing forward. I have also seen ads on job boards which I'm pretty sure refer to the same contract and also showing higher rates.
2) Another agent approached me about a contract that is technically similar (but with a different client) and with a minimum £50 higher than the original (non-discounted) rate for the contract I have - I said that I'd be willing to go to interview but that I did have another offer. I did go to interview and while I wasn't quite as impressed by the role, it did seem very interesting. I'm waiting on hearing back on this one.

On Monday, the agent will be expecting me to sign the contract (assuming it does actually show up when they say), however I'm having second thoughts purely on the rate. I definitely like contract 1 more, and I may not even get contract 2, but I do feel like I've been taken for a ride by agent 1.

For those of you who have been through this before (or are just wiser than I am!), could you give me your thoughts on the situation? My inclination is to say to agent 1 that I'm considering pulling out as I haven't signed up to anything yet (and I haven't had a contract to review yet), and see what they come back with - one thing on my side is that while I'm still permie, I do have time.

Thanks in advance for your advice

[escapeUK]

Id say "Ive been thinking things through, and Ive decided I wont be taking the contract at that rate. Its not high enough. As you suggested, Ill let you worry about that. Cheers"

[VectraMan]

Welcome to contracting.

Ultimately if you're not happy with the rate, say no. They may offer more, or they may not, but you're under no obligation to accept anything. It does sound like they're trying to bully you, assuming you'll say yes to get something, but everything is negotiable until it's signed so don't believe that. The extra £50 is probably going in the agents pocket anyway.

[Olly]

Hmm...how do you stand though if you decline a contract based on rate or contract term or whatever and then go straight for it again with agent B. My gut feel is that's legally allowed irrespective of what's written in any contract (you haven't signed).

Why don't you talk to another agent and tell them the situation? That makes 3 people happy, you get your rate, the new agent gets business and the initial agent is happy for the free business lesson

[Wanderer]

It then turned out that the contract hadn't yet been approved and that I'd have to wait 1.5 weeks for it to be approved (apparently this will come through on Monday now) - the end user did confirm in a call with me directly that they are very keen to get me onboard

Phone the client back and ask them how much they are paying the agent because you think the agent is trying to pull a fast one on you so you are considering walking away from the offer. Agents love ripping off the new kids to pump up their margin, make sure they aren't doing it to you. A quick chat with the client and next thing you know, the agent will call you up with the good news that "they have negotiated a rate increase for you".

As for the other agencies, once you've been introduced to a client by one agency it's difficult (though not impossible) to get put forward for the same job through another agency. I've seen clients get the same CV from multiple agencies and they choose the agency they have on their preferred suppliers list or the one they trust to do business with. It can cause a bit of friction though so don't tell the agents what's going on, in fact don't even enter into a discussion with them once you have the contract.

[MarillionFan]

Id say "Ive been thinking things through, and Ive decided I wont be taking the contract at that rate. Its not high enough. As you suggested, Ill let you worry about that. Cheers"

It may well be that it's the agent who has taken the extra £50. At the end of the day nothing happens until the contract is signed. I've taken to adding to conversations with agents 'Subject to Contract' which is implying that all's fair until it's signed. I had one really pushy agent a while back saying 'But you've agreed to do it, you've given your word', to which my answer is always the same 'I have agreed subject to contract'..

So as we always say carry on interviewing until the last second. If you have more than one offer take the best one. If you feel that a second offer is coming, hold the agent off for a day and if you're feeling really bold just tell the agent that you have another role which is paying more and that the price for this is X + £50, otherwise no deal. Remember you can play hard ball as well.

Good luck.

[Clippy]

Your choices are simple:

Negotiate with Agent A regarding the rate to see if you can get it increased. If not, walk away as the (perceived) low rate will bug you for the duration of the contract particularly, as you mentioned, the client is looking for multiple contractors some of which, in all likelihood, will be on a higher rate than you.

Forget about applying for the same role via Agent B as this will, potentially, lead to problems if Agent A finds out or Agent B realises, if you don't tell him up front, that you have already been submitted and interviewed for the role. It will also, potentially, piss off the client.

Regarding the second contract, you should be able to stall Agent A and signing the contract, if that's what you decide to do, for at least a few days by saying you need to have the contract reviewed to see if it is IR35 caught (QDos offer this service at a competitive price). This should, hopefully, allow you enough time to hear back as to whether you are invited to interview for the second role.

Agents are out to maximise their take for each contract and you are not the first person, and will not be the last, who has been quoted one figure at the start of your engagement with an agent only to see this figure reduced so don't beat yourself up about this - particularly as this is your first contracting experience.

Good luck and don't forget to update this thread with what happens.

[SimonMac]

Id say "Ive been thinking things through, and Ive decided I wont be taking the contract at that rate. Its not high enough. As you suggested, Ill let you worry about that. Cheers"

WHS!

If your not happy with the rate and think you can get a better deal walk elsewhere.

Although as this is your first contract can you afford to sit on the bench while you chase the higher rate?

[vordaka]

Thanks for all the responses; I shall go into battle tomorrow and update once I have either sorted it out or otherwise

[vordaka]

Just a quick update; I went back to the agent and said that I would only sign at the rate that was originally quoted to me. After much wailing and gnashing of teeth on the agents part they did come back a few days later with the full rate that I'd originally been quoted.

I was happy with that resolution and so have signed up for that contract.

Thanks again for your advise/comments.