working direct for client

[sigma]

Hi
I've not done this before (. Apart from the issue about how long the client takes to pay a purchase order (which I can live with), are there any other issues that I should take heed of?

Contractually a purchase order would be raised. Would it be ok (wrt IR35) to specify when the work will be completed by? The client is a large organisation and it can take time for all the relevant cogs to turn at the right time to get things done.

thanks in advance
S

[Scrag Meister]

Hi
I've not done this before (. Apart from the issue about how long the client takes to pay a purchase order (which I can live with), are there any other issues that I should take heed of?

Contractually a purchase order would be raised. Would it be ok (wrt IR35) to specify when the work will be completed by? The client is a large organisation and it can take time for all the relevant cogs to turn at the right time to get things done.

thanks in advance
S

Are you going to be invoicing direct? I got a role direct with a previous ClientCo, but they still threw an agency in the middle.

Payment terms are crap compared to my previous contracts, even when I was here before I invoiced and got paid weekly, now I'm paid 3 weeks in arrears. Its working ok so far after 2 invoices being paid. Was 7 weeks from contract start to first invoice being paid though, early March to near end of April. Now that has been cleared it works out monthly which is fine.

[northernladuk]

Are you asking out of pure interest or do you have an opportunity to do so? It is not that common for large organisations to take contractors on directly. If you are just asking out of interest with a view to try dumping your agent or bypassing them there is a whole host of other issues you need to consider first.

[sigma]

Are you going to be invoicing direct? I got a role direct with a previous ClientCo, but they still threw an agency in the middle.

Payment terms are crap compared to my previous contracts, even when I was here before I invoiced and got paid weekly, now I'm paid 3 weeks in arrears. Its working ok so far after 2 invoices being paid. Was 7 weeks from contract start to first invoice being paid though, early March to near end of April. Now that has been cleared it works out monthly which is fine.

Invoicing direct? yes, that is the intention.

That is the drawback of monthly payment; it's common for agencies to take up to four weeks to pay after month end. I usually try to negotiate an earlier payment date before signing the contract.

[sigma]

Are you asking out of pure interest or do you have an opportunity to do so? It is not that common for large organisations to take contractors on directly. If you are just asking out of interest with a view to try dumping your agent or bypassing them there is a whole host of other issues you need to consider first.

It *looks* like there is an opportunity to do so. I went direct to the client so no agency is involved. I have worked for the client in the past.

[northernladuk]

It *looks* like there is an opportunity to do so. I went direct to the client so no agency is involved. I have worked for the client in the past.

Have a dig around to see if the have a PSL and which agents are on it, also see if you can find other contractors that are direct. Just because you go direct the the client it doesn't mean he will deal with you direct. He may say you are great, we want you, speak to x agency and get paperwork sorted. At least then you will know your position better so have an idea how it will go with the client.

Do you have a contract ready to give the client? Agencies give you one to sign so it's easy. The client may expect you to come up with one. I believe there are some templates on the PCG website. If this is the case and judging by your IR35 question you need to read up on it and get the contract checked by Baour and Cotterel or QDOS.

Make sure you negotiate the best payment terms you can. As you say clients can have very long terms.

Check PI/PL insurance requirements possibly if you don't have it already?

Can't think of anything else off the top of my head.

[kingmob]

go for it

I went direct on my last contract and had no problems at all - was taken on for a six week contract at a Client I had previously worked for and ended up staying 14 months

Keep Finance and HR sweet and you'll have no problems