Daily rate accepted and what a contractor will get

[Software]

Hi Guys,

I am a first time contractor and i have few queries.

1. If an agency forwarded a CV for £400 per day and if the person gets selected in the interview.
Can the agency give lesser amount to the person than what he has agreed before?

2. Does this £400 is what the contractor will get daily or this includes the agency rate also, so they will detect their share daily on this £400?

Please respond. Thanks.

[northernladuk]

I am afraid you are going to have to put a bit more thought in to this if you are going to go contracting I am afraid.

The client pays the agency, the agency pays you. The agent can take whatever cut he wants depending on how much he can screw you for. Some places are on fixed margins, some aren't. It is about negotiating. SOmetimes they will try reduce the amount by some sly method, normally because you are a noobie and have no idea. THis goes in their pocket.

[SeekingIT]

Agree Rate First!!! - Lesson Learned!!!

Hi

Welcome to the world of contracting. Always, always agree a rate that you will be content with BEFORE you get put forward. That way, there'll be less sagas and room for agent to shaft you.

If the CV went to the client at £400 - that is not your concern, what IS your concern is the rate you've agreed with agent...i.e. agent gets fees paid separately from client, or does he? Does his fee come from the £400?

You may or may not find out, immaterial, agree fee first!!!!!

Let us know how turns out.....

[BolshieBastard]

Hi Guys,

I am a first time contractor and i have few queries.

1. If an agency forwarded a CV for £400 per day and if the person gets selected in the interview.
Can the agency give lesser amount to the person than what he has agreed before?

2. Does this £400 is what the contractor will get daily or this includes the agency rate also, so they will detect their share daily on this £400?

Please respond. Thanks.

Being pragmatic about your query, I'd have thought as you are mentioning a figure of £400 a day, the agent suggested this is what you would get rather than what he would get (as agents never disclose this. Well not in my experience.)

So, that being the case and as already been pointed out, the client can make a lower offer to the agent for your services, say £300 a day. What you wont know is the amount over and above this that the agent is getting. Is the agent getting £50 or £100 a day on top of your rate?

You have to decide if whatever is on offer to you is worth your while bearing in mind you are a first time contractor. If you arent happy with what is offered, tell the agent what you want for the role but be prepared to walk away if the agent wont increase the rate on offer.

[Wanderer]

2. Does this £400 is what the contractor will get daily or this includes the agency rate also, so they will detect their share daily on this £400?

The rate you negotiate with the client is the rate that you will get. The amount the agency take over top of this is up to them. As BolshieBastard says the Agencies like to keep their cut of the deal secret because sometimes it's quite substantial. You can ask the agency "how much margin" they are making on the deal and sometimes they will tell you. Sometimes it's a fixed margin due to their deal with the client and other times it's variable and they will take as much from the deal as they can get away with.

1. If an agency forwarded a CV for £400 per day and if the person gets selected in the interview.
Can the agency give lesser amount to the person than what he has agreed before?

Putting someone forward for an interview at a particular rate is just an opening shot in the negotiation process. If the client wants you on then they will tell the agency to make you an offer. None of this means a tulip until it's written down in a contract and signed. Several things may happen here:

1. The client tells the agency to offer you £400/day and tells the agency they will pay them £450/day.
2. The agency lies to you and tells you that the client is only offering £350/day but doesn't tell the client what they have done and pockets the £100/day difference
3. The agency has another candidate who is a second choice for the client but they have a better margin for them on the deal and they say that you have rejected the offer but the other candidate has accepted.

The agencies would much prefer it if the two sides stuck to using them as a middle man without knowing what was happening. You should ALWAYS get the contact details of the client and leave your details with them so you can talk direct if required. Some clients will tell you what the rate on offer to you is (ie, minus the agency margin), others are strict about you discussing it with the agency only. It's worth making discrete enquiries about this at the interview but play the game very carefully as some clients flatly refuse to speak directly to contractors about the contract details. If the agency start talking about the client cutting their offer, you can always try talking direct to the client to see what's going on. Sometimes, the client may talk to you directly to cut out the agency bulltulip other times they will refuse.

[Scrag Meister]

Being pragmatic about your query, I'd have thought as you are mentioning a figure of £400 a day, the agent suggested this is what you would get rather than what he would get (as agents never disclose this. Well not in my experience.)

So, that being the case and as already been pointed out, the client can make a lower offer to the agent for your services, say £300 a day. What you wont know is the amount over and above this that the agent is getting. Is the agent getting £50 or £100 a day on top of your rate?

You have to decide if whatever is on offer to you is worth your while bearing in mind you are a first time contractor. If you arent happy with what is offered, tell the agent what you want for the role but be prepared to walk away if the agent wont increase the rate on offer.

WBBS