Negotiatin contract extension.

[davidh]

Hi, I am looking for some advice.

I have been on a contract for 9 months now and my contract is due to be extended for a further 3 months.

Problem I have is that I found out how much the agency are being paid for me by the company I am being contracted out to.

Basically they are paying £20 to the agency and I am getting £15 of that.
I also found out that the company were under the belief that I was being paid £18 per hour by the agency.

So clearly the agency are taking an extra big chunk of this before it gets to me. I have been told it would be normal for agencies to take around a 10% slice, but obviously his can vary.

At my last contract extension I confroned the agency with this info not saying who I got it from and they went mad. Point blank denied that situation and said it was against client/contractor agreement to discuss payment rates etc.

So, This time I asked for a pay increase to £19 so that the agency would have to go to the client and I would hopefully get a fairer chunk back.
I am fairl sure this increase was accepted by the client but the agency are now only offering me £16 so still keping their chunk.

What should I do???

Refuse the offer and hope they give me the £19 as they wont want tell the client why I refused the contract when they accepted the pay rise request?

Will I threaten them with a "made up offer" I have from another agency for £19 therefore that is what I need to stay in the current contract with them.

What would you guys do?

I now know it is all about the deal you cut at the start and I have learnt that lesson the hard way now.

[The Lone Gunman]

Tell the agent you know his margin, its not your fault somebody told you.

Tell him you know the client thinks you are getting 18 so you feel you should be.

Be prepared to walk away.

If you cant afford to walk then brinkmanship is your only option but that may lead to the agent calling your bluff.


As I have said to a number of people. The agent is not ripping you off. If you accept an offer and think that offer is OK then it does not realy matter what the agent gets. The only thing to be wary of is an agents cut pricing you out of the market.

[davidh]

Yeah the last ime I tried to tell him I knew the margin but he denied how much they are getting.

He said they were getting £16 instead of £20.

And that it was against the agreement for myself and the client to discuss pay in any form. Is that true?
I spoke to the client after that and he got a slap on the wrists for talking about it and couldnt go to the agency for me to resolve it.

So this time I need a different plan of attack.

[Not So Wise]

And that it was against the agreement for myself and the client to discuss pay in any form. Is that true?

Only true if it says it specificlly in your contract with the agency (or true for client if it says it on their contract with agency) or the contracts have a broad scope confidenciality agreement (which are generally invalid anyway)

Otherwise you can talk between you all your want

[Mordac]

Just tell the agent you saw their invoice sitting on your managers desk. Most of the time that's what happens anyway.
10% is probably on the low side, and generally only happens under PSL arrangements; most agents would probably try and get away with up to about 14-15%. Any more and they are fleecing both you and the client.
To be brutally honest, in your situation I'd walk. The market is very hot from the contractor point of view at the moment. I spoke to an agent mate of mine yesterday and they can't find good candidates for love or money at the moment. In the next few weeks we should expect that to filter through in rate increases. You should have no problem finding another contract. Do some digging first though, just to be on the safe side.
And I'd wager a shilling that the agency is part of S3. Feel free to name and shame.

Good luck

[davidh]

What is S3?

I think I will just say that want I need £19 an hour or I go to the other job.
And then they wont get any comission at all for me.

They have made a fair few K's out of me already in the past 9 months so that might not bother them.

[expat]

What is S3?

I think I will just say that want I need £19 an hour or I go to the other job.
And then they wont get any comission at all for me.

They have made a fair few K's out of me already in the past 9 months so that might not bother them.

It'll bother them all right, because they'd be saying goodbye to a few more Ks that are on the table for nothing. But they may feel that they can do again to somebody else what they're currently doing to you.

Know whether you are prepared to walk. It sure is easier if you are, but remember that if you do, we will all cheer you on but we won't get you your next contract.

[davidh]

Thats very true, all good advice. Thanks all.

They are probably doing it to so many contractors, difference is I found out.

[Mordac]

S3 Group. A collection of particularly contractor-unfriendly agencies. They include Huxley, Comp Futures and Progressive and a few others.
Most contractors learn (at some point) to avoid them.
Who is the agency as a matter of interest?

[davidh]

CP.
Anyone had good or bad experience with them?