Reply to: Email from agency 'requesting' a 10% rate reduction

[TheFaQQer]

Can you just ignore the email, while asking questions at the client?

It's amazing how often things like this end up in a spam folder

[nomadd]

Just received this email from my agency. The names have been changed (some more than others) for the sake of anonymity.

It's the last line about not contacting the client that really annoys me.

Had a similar email about 3 years ago from Modis. Just arrived unannounced on my doorstep on Saturday morning with no warning. It also had a brand new "take it or leave it" contract attached with a variety of bad clause added in it.

First thing on Monday morning, I walked into the Directors office of the client - a huge multi-national - and said that the new contract terms were unacceptable to my company and that I would not be renewing. He was gobsmacked, as it was the first he knew about any of this. Needless to say matters were sorted quickly and I was renewed under the previous contract terms and conditions.

If I was you, I'd start to kick up a stink with the client. Might come to something, might not. After all, they may be mandating the reduction. Still, if you don't ask, you'll never know...

Nomadd

[d000hg]

Can you just ignore the email, while asking questions at the client?

[TheFaQQer]

Perhaps you could suggest keeping the hourly rate the same, but reduce the number of hours you do, to save the client the money. Alternatively offer to work on an ad-hoc basis, only working hours in the week where there is work to do (i.e. not a standard 40-hour week).

Won't work - the email says

Please be advised that Bobco Limited will not entertain any discussions around changes to other terms and conditions of your contract.

I would sit down with someone from the client and discuss it (without making it an enquiry, of course) and see exactly what the situation is. I'd also try to find out what kind of margin the agency is on - are they on a fixed fee (find me someone for £x) or a percentage of your rate?

Think about how much you want to stay there, whether you think you will get another role at the moment, how long could you survive without work. Then and only then will you know whether you should take the cut or not.

Personally, I'd only do the first half of that lot. Find out what the score is, then tell the agency where to stick their "offer". You'll find out how flexible they are when they have to bend over to stick it up their ****.

[minestrone]

Elan actually fought for contractors during a mid contract rate reduction in a place I was at. The other agents just bent over so I have respect for Elan for doing that.

I got 'offered' a 15% rate cut at the start of the year in a financial, I walked but was explicitly clear to both client and agent my reasons for leaving and told them I would return when they offered me the existing rate. I took some time off, did another gig and now I am back at the financial for the same rate.

[Paddy]

Perhaps you could suggest keeping the hourly rate the same, but reduce the number of hours you do, to save the client the money. Alternatively offer to work on an ad-hoc basis, only working hours in the week where there is work to do (i.e. not a standard 40-hour week).

I agree, well said.

[miffed]

I work with one other contractor and we're the only two developers on this project - he started it 3 years ago and I joined about 18 months later. He got the work because he's a friend of the technical lead and when he first started he was invoicing Bobco (a large multinational) directly. It's only in the last two years that Bobco decided they wanted all contractors to go through Enal (incidentally the worst agency I've dealt with in 15 years of contracting).

So neither of us were recruited by the agency - we both got our contracts and agreed our rates with the client before Enal got involved. This makes the fact that they're reducing our rates even more galling since Bobco could save a lot more than 10% by cutting the agency out and letting us go back to invoicing directly! This is something I plan to discuss with the project manager on Monday but I fear the company policy of forcing everyone to use the agency will win the argument.

My colleague has already decided to accept the rate cut and do 10% less work and I'll probably end up doing the same.

Still, I feel better now I've had a good rant on here. Thanks for all your replies

[KentPhilip]

Perhaps you could suggest keeping the hourly rate the same, but reduce the number of hours you do, to save the client the money. Alternatively offer to work on an ad-hoc basis, only working hours in the week where there is work to do (i.e. not a standard 40-hour week).

[darmstadt]

Bobco Limited and Enal will consider positively the flexibility you will demonstrate through accepting this change, in conjunction with the business requirements for the role at the time of your next contract renewal.

So if you say NO then come renewal you ain't going to get it, blackmail?

Although it doesn't say anything about a termination if you say no either. Why not offer to go direct with the client for 10% less than they're paying the agency, win-win situation for you both

[Doggy Styles]

Bobco make damn good fishing tackle. They shouldn't need to cut contractor rates.

[pzz76077]

I guess the story here is that Elan are in a financial pinch and should not be trusted with more than 7 days credit.

PZZ

[MaryPoppins]

I worked through Elan earlier this year and took a rate cut with them, but the email we rec'd was very different. It was a much simpler case of "take the cut or leave". The email OP has rec'd seems much woolier. I'd definitely mention it to ClientCo, and other contractors. I'd then reply and say ta, but no ta.

[thunderlizard]

will consider positively the flexibility you will demonstrate through accepting this change, in conjunction with the business requirements for the role at the time of your next contract renewal.

So they're not intending to terminate early. It's just a chance for you to demonstrate your flexibility. Aren't they nice, giving you a change to shine and demonstrate your flexibility like that?

And when they weigh up your flexibility against those "business requirements" (according a fair whack more weight to the latter than the former, one would hope), you'll be considered positively. I can almost hear the applause and air-kisses already.

Now, an old cynic like me might say any flexibility you demonstrate now will be well and truly forgotten when renewal time comes around, and you'd be more effective demonstrating it at the point of renewal (as well as having billed the correct amount instead of an unexpectedly below-contract rate).


Got to go, I'm off to Dixons to tell them the £8000 flatscreen TV I bought in 1999 is now worth £500, so how about my £7500 back?

tl

[swamp]

Ask the client about this, and if your agent is pulling a fast one get straight on to him and demand a 10% rate rise or you'll tell the other contractors on site.

[pzz76077]

Elan eh? daffodils.

They dont have a good reputation around here- they seem to send the cheapest Muppet that they can make the most margin on. The average one lasts about 4 weeks before they leave for another contract.


PZZ