two tier agencies and a payment mess.

[Incognito]

It'll be a bit of a pain in the arris to do it, but easiest method? Dissolve your existing Ltd, start up a new one, go to Tier one agency. Hey presto.

[Svalbaard]

With all due respect I don't think the CUK forums are the best place for this, and if anyone else had answered I suspect that their advice would be as mine which is... go see a commercial lawyer.

Best of luck with your situation.

[vfr_rider]

Hi all,

it's been a while since I last posted, and funnily enough it was regarding this exact same issue.

I've been foolish enough to get involved in a two-tier arrangement. it's not officially documented as such; the contract is between myself and a small agency who I won't name. the small agency bill the bigger agency, the bigger agency bill the client - and eventually I get what's left over.

on the contract I have, the bigger agency is named as the client. my own LTD co is named as the consultancy.

unfortunately, the small agency I have a contract with hasn't been paying me on time. 17 out of the last 18 payments have late; last months payment was a fortnight late and only arrived after I threatened to go offsite.

this months payment is now also several weeks late and there's no indication whatsoever from the agency as to when it will be paid - they've openly admitted to not having the cash to pay my invoices due to payment delays from the bigger agency - in other words, they can't afford pay me until they get paid.

they really are a lovely bunch of coconuts and no mistake.

I've followed through with my threat and I'm off site at the moment - I have no intention of going back until the payments are up to date. Luckily I've got a very good relationship with the actual client (a major blue chip service provider) and they're being patient regarding this; but obviously I'm losing money for each day I'm not working.

the communication between the small agency and myself hasn't been particularly good over the last few days - especially since I formally asked to be released. I offered some sort of buyout payment but they weren't interested.

as the contract is between my ltd co and this agency, what are my options?

and what happens if the smaller agency goes bust?

I'd appreciate some advice from more experienced contractors - have you been in this position before, and how was it resolved?

I've come to terms with the possibility that I might have to leave the current site altogether - which is completely unfair IMO. the conduct of the agency in question has been amazingly poor to say the least.