Renegotiate rate after verbal agreement and start

**GB9** · 3 March 2014, 14:03

Originally posted by a27 View Post

Hi,

I had an interview on Tuesday for a position and we offered the role on Wednesday. (£220 per day)

The agent sent the contract on Wednesday but I didn't sign it before starting on Friday.

On Friday, the agent emailed both myself and the client asking us to sign the contract and return it to them.

However, the attachment on this email was the client's version and this revealed the rate the agency is charging. (£280).

I think the margin is high but I'm aware that we have a verbal agreement.

I'm not sure whether to honour the agreement or attempt to renegotiate.

What do you think?

The margin may be high in percentage terms, but in financial terms £60 isn't that much.

Regardless, if you started on site you have by default accepted what was verbally offered. Your only option would be to not turn in but then you would lose the role and almost certainly not get paid a penny.

I would just accept it and save yourself worry.

**a27** · 3 March 2014, 14:10

Originally posted by GB9 View Post

The margin may be high in percentage terms, but in financial terms £60 isn't that much.

Regardless, if you started on site you have by default accepted what was verbally offered. Your only option would be to not turn in but then you would lose the role and almost certainly not get paid a penny.

I would just accept it and save yourself worry.

Thanks.
I thought so.

I still have telephone interviews scheduled from before I accepted.

Would it make a difference if the agency knew I was considering other offers?

**Scrag Meister** · 3 March 2014, 14:17

Originally posted by a27 View Post

Hi,

I had an interview on Tuesday for a position and we offered the role on Wednesday. (£220 per day)

The agent sent the contract on Wednesday but I didn't sign it before starting on Friday.

On Friday, the agent emailed both myself and the client asking us to sign the contract and return it to them.

However, the attachment on this email was the client's version and this revealed the rate the agency is charging. (£280).

I think the margin is high but I'm aware that we have a verbal agreement.

I'm not sure whether to honour the agreement or attempt to renegotiate.

What do you think?

Its a large %age because you are on such a low rate.

They obviously have minimum value requirements for each contractor they place, irrespective of rate.

I wouldn't be chuffed with a 21.4% cut off the top of the gross client rate.

**DirtyDog** · 3 March 2014, 14:17

Originally posted by a27 View Post

What do you think?

You have accepted the contract. You started work, which indicates acceptance of the contract. If you want to negotiate, you need to be in a position of strength - at the moment, I don't think you have any, though, to be able to force the agency to change.

If you aren't happy with the rate, then give notice as per the contract, leave and find somewhere that is going to get you a higher daily rate. If you aren't happy with £220 a day, then why did you accept the contract in the first place?

Finally, £60 a day isn't that much for an agent to be taking - factor in their fixed costs first, rather than thinking of it as a high percentage of your rate.

**The Spartan** · 3 March 2014, 14:20

I thought the general gist of it all is if you were happy to accept the rate at the time then you should get on with it and then bring up the topic of an increase at renewal time.

**northernladuk** · 3 March 2014, 15:12

Starting without a signed contract is generally pretty daft and to be avoided if possible. I assume you haven't had your contract IR35 checked by the likes of B&C and QDOS which is also a bit daft bearing in mind they can turn it around in a day if you ask. No client is too busy and can't wait an extra day or two while you get your ducks in a row.

If you have started you are knackered. You accepted the rate so just suck it up and prepare to nail the agent to the wall when it comes to renewal.

**Antman** · 3 March 2014, 15:15

At least he'll be opted in.

**DirtyDog** · 3 March 2014, 15:19

Originally posted by a27 View Post

Would it make a difference if the agency knew I was considering other offers?

No. You've accepted the contract, so the only way out now (without breaching the contract) would be to give notice as per the contract.

Play it badly and you'll end up with nothing.

**a27** · 3 March 2014, 15:29

Originally posted by northernladuk View Post

If you have started you are knackered. You accepted the rate so just suck it up and prepare to nail the agent to the wall when it comes to renewal.

Thanks.

When it comes to renewal, how does one know how high to go?

I know the client is paying them £280 now but if say I asked for £250, would the client pay them more?

Renegotiate rate after verbal agreement and start