- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: Direct Contract negotiation
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Direct Contract negotiation"
Collapse
-
Originally posted by voodoo child View PostHi guys and girls, I've searched the forum but I couldn't come across any answer to my question.
Basically I might have the chance to get a direct contract with a client. This is the first time, if my usual rate is around 600-650 what could be fair to ask in the direct contract?
Thanks for the help!
Leave a comment:
-
Originally posted by JamJarST View PostYou do realise it is more than just negotiating rates don't you, have you considered that your payment terms will probably be worse when you go direct?
Leave a comment:
-
Originally posted by voodoo child View PostThanks everyone! I have a better overview now.
I'll start with 725 to possibly hit 700.
Cheers.
Leave a comment:
-
Originally posted by voodoo child View PostThanks everyone! I have a better overview now.
I'll start with 725 to possibly hit 700.
Cheers.
Leave a comment:
-
Thanks everyone! I have a better overview now.
I'll start with 725 to possibly hit 700.
Cheers.
Leave a comment:
-
Business is business IMO, I'd ask for 12% and if needed negotiate down to 7.5% but make it clear that 10% is more realistic for you
Leave a comment:
-
As others have said, 10%, depends on the normal margin for the agencies at the client though.
I went direct for my current role, but the client still through an agency into the mix, presumably to put some distance between MyCo and ClientCo.
Agency on this gig is getting very low rate, due to volume and not having done any work to recruit me. So basically only providing payroll services and even that is only on a "Client pays us we pay you" basis.
Has worked fine for the last 18 months so can't complain.
Leave a comment:
-
I agree with Sarah that a 10% increase on your normal daily rate would be acceptable
However one warning I'd add is that few companies like contractors direct and instead prefer agencies (for various reasons not worth discussing here), so why not initially keep your rate the same to get the contract (you're not losing out on what you would normally invoice anyway) and then look to increase the rate once you've secured the position and proven your worth the the end client?
Leave a comment:
-
There's a paper out by Institute of Interim Managers that has got some survey data. Agencies typically get 20% - 25% of your day rate and when they're out of the equation interim managers can typically negotiate around a 6% increase to their day rate.
Personally I go for 10% on the basis I'm then splitting the difference with the client. They need to feel that they're getting a saving by not using an agent to bring you on board.
Leave a comment:
-
What is the going rate for your type of work? IMO Just because you are going direct doesn't mean you can charge over the odds or expect the agents cut to be included as well. The client pays the extra to the agents for their services. Just because they are not using an agent it doesn't mean you can have the money the agent would have got. You didn't say what you did so just plucking a number out of the air means nothing.
Leave a comment:
-
Originally posted by voodoo child View PostHi guys and girls, I've searched the forum but I couldn't come across any answer to my question.
Basically I might have the chance to get a direct contract with a client. This is the first time, if my usual rate is around 600-650 what could be fair to ask in the direct contract?
Thanks for the help!
Leave a comment:
-
Direct Contract negotiation
Hi guys and girls, I've searched the forum but I couldn't come across any answer to my question.
Basically I might have the chance to get a direct contract with a client. This is the first time, if my usual rate is around 600-650 what could be fair to ask in the direct contract?
Thanks for the help!Tags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: