Direct contract with client

[tejalpande]

Hi all,
I am working as a contractor for last 2 and half months and my contract is getting over in next 2 weeks time. My client wants to extend the contract, however, I am a little concerned. This is mainly because of very low rate.While speaking to my manager about this, I came to know (unofficially) that my client is paying very good rate to my agency, however, I am getting only 60% of it . Is that how contracting works? Is this a case with almost all agencies?

I asked the client if they can do the contract with me directly instead of involving the agent. They say that direct contract is possible only if i can get a NOC (no objection certificate) from my agent even though my contract does not have clause against direct contracting. Now I am really confused, as i m sure that the agency wont give me such certificate. And I still have to continue as I do not have any other job in hand. What is your experience guys? Could anybody please provide me help in this matter?

Lastly, how often people break the contract? My contract has a clause stating that my agent would give 2 weeks notice to the client for termination. Could anybody share their experience?

Regards,
tejal

[Spartacus]

If you are getting only 60% of the fee, the agency is adding on a markup of 67%, which is totally outrageous. They are no doubt taking advantage of you as a first timer but that is how you learn in contracting. A couple of options you might consider:

1. Ask the agent to justify such an obscene margin and then when they cannot ask them to reduce it to something more reasonable (20% max). Make it clear that you will walk (and be prepared to do it) if they don't see it your way (no agent will throw away commission unless you are being totally unreasonable).

2. As there is no contractual restriction on you working direct with the client, you could flick the agent a twin and just go direct. Ask for the no objection letter (if you don't ask, you don't get) but if they are difficult about it (highly likely) just offer to indemnify your client. If your client isn't happy with that, they need to speak to the agent. If they won't do that, your choices are to continue to be screwed or to walk (then you will find out how good/useful the client really thinks you are).

[ratewhore]

english of the pigeon variety...

[tejalpande]

Thanks for your reply Spartacus. I am planning to talk to my agent tomorrow and have been preparing for better negotiations. From what I understand from your post, I can directly negotiate about agent's margin and ask him to reduce it. Lets see how it goes...

Unfortunately my client does not want to do direct contract without NOC even though my contract has no such clause and he feels bad about my situation.

Thanks once again.
-Tejal