Asking Agency for rate % cut

[kaiser78]

It's the only thing that gets my goat about the whole contractor/agent thing: as long as nobody brings it up I won't start! I just see red whenever I hear it.

No-one likes dealing with agents but in 99% of contracts they are a necessary evil. However there are more important things in our sad, non-progressive contractor lives to lose sleep over or see red whenever one hears it.

[Wanderer]

As I am currently in a 3 month contract, with possible renewal [not confirmed yet, but likely as the business is growing all the time], but as I have not asked in the past for the agency margin on my current rate and T&Cs.

What are ppls advice to approaching this?

Make discrete enquiries at the client to find out how much the agency is taking off you. Asking the client if the agency are on a "preferred suppliers list" and if they have many contactors at the client is a good opening line.

The reality of it, is utterly irrelevant. The "contractor takes a cut of the agents rate" is necessary because in LEGAL terms, that is EXACTLY the situation.

Only in that the contractor bills the agency and the agency bills the client. Only a few times in the past 15 years have I've been introduced to a client by an agency. As far as I'm concerned, they are taking a slice of my money so I make it my business to know how much they are taking for doing bugger all.

Funnily enough, it's a situation which suits contractors very nicely generally, because it's another layer between HMRC and their limited company if the gig they're doing is their only source of income.

Really? I find most agencies just get in the way of me doing business with my clients and I would do away with them in an instant if the clients would engage me direct.

[malvolio]

Really? I find most agencies just get in the way of me doing business with my clients and I would do away with them in an instant if the clients would engage me direct.

But they won't, for a host of reasons (and simplified billing is not one of them). So assuming what you get paid is what you want to get paid - and if it isn't why are you taking the gig? - then how much is the agency's income worth to you? His "cut" allows you to earn a few grand a week. And don't kid yourself the client will pay you what they pay the agency; go look up "added value".

All well and good being a hero about it, but the reality is that while the work doesn't exist without us to do it (and you can argue that one away fairly easily), you wouldn't be there without the agency. So, as previously advised, live with it.