Going Direct after Client refuses to contract via agency

[Contreras]

Negotiate your fee with the client so that it's about the same as what they were paying before (i.e. including the agency commission). Proceed as advised above, but hang onto the commission bit in the very unlikely event that a court forces you to pay up.

Beware that the response may be "oh well in that case we might as well go via the agency", or worse - silence while they look to engage a cheaper contractor or permie.

Before discussing the rate, why won't the client won't deal via the agency? Does the manager who wants to go direct have this "idea" sanctioned by HR? Is it there a problem with that specific agency or is it a change in company policy? The latter means their contractor resource pool has suddenly become restricted to probably just you and a handful of others!

When I've been approached about going direct I've let the client know I'm equally happy to work either via either route and that it's their call to make, and that I won't let on to the agent about the possibility of work. But if they insist on the agency route (and they usually do) then I'll make my rate negotiations with the agency thank you.

Middle-ranking PMs/team-leads often have an overinflated idea of the agency's margin and so overestimate the potential savings to their project by going direct with the contractor. As much as it pains me I reckon there can sometimes be a better chance of a rate increase (and less chance of damaging the client relationship) by staying with and squeezing the agent.

[Metalic]

Going Direct after Client refuses to contract via agency

Thank you all for your help.

Suggestions here and my research indicates the restriction clause would not be enforceable as the agency cannot demonstrate loss of earnings as the previous contract was terminated by the client two months ago and they had already lost the client before and the client would not issue new contract through this agency.

Regarding other points raised:

• My rate will be the same as the last rate

• I do not know the specifics, all I know client has removed the agency from the supplier list. I doubt it would be the rate as client pays the contractors directly so they would know the agencies' commission.

• The agency already knows about client approach for new contract. As initially neither the manager nor I knew that the agency was no longer a supplier to the client, we expected a simple process through agency. I have told the agency on the phone and I believe the client has been in contact with agency as well.

One question I have is that would it help to ask agency formally to arrange a contract with the client to demonstrate that they would not be able to fullfil the clause to arrange a contract with the client and I had no option but go direct otherwise I would lose business?

[eek]

One question I have is that would it help to ask agency formally to arrange a contract with the client to demonstrate that they would not be able to fullfil the clause to arrange a contract with the client and I had no option but go direct otherwise I would lose business?

No leave the agency out of the picture let them do all the running if they want to be arsey.

[TheFaQQer]

My rate will be the same as the last rate

Missed a trick there.