Substituting myself

[AnthonyQuinn]

Dear All
Been a contractor over 11 years and have often heard about substitution clauses and many people on this forum have mentioned it in various contexts? But has anyone actually substituted oneself midway through their contracts? I seriously need to consider it and any tips on how you did it (discussions, resource search, contract documentation) would be much appreciated.

Thanks so much for your time in advance.
Tony

[stek]

I've been contracting over 30 years and never used a subbie or seen anyone use a subbie on-site but I am assured it does happen!

[northernladuk]

The chances of subbing out if you are a bum on seat contractor at a large client through an agent are incredibly slim but lets hope you do. Would be good feedback for the forum

Firstly check the detail of your sub clause. What does it say about client giving approval. It's likely you are going to have to introduce them to the client first. If your contract is written properly they shouldn't be able to say no for no reason.

You also don't provide a body and do one. You will have to train him up in your time so that he can truly pick up where you left off. People often think that just a new guy turning up day one is subbing, which it isn't. The new person should be able to carry on seamlessly. I'd expect this is where the client has a problem as he will need access etc and you aren't going to be productive while training him up.

Are there no other options like negotiating an exit and just letting the agency backfill you or anything?

[oracleslave]

I've done it once, when I was direct to a client. Process I followed was:

1) I cleared it with the Programme Director first who, as a contractor himself was fine with it.

1) An agent I trusted found me someone he knew that was decent, and a good skill set match and introduced us.

2) I did a 1 week handover, both of us onsite, only my Ltd co billing for that week.

3) I continued to bill the client for the remaining duration of the contract.

4) Substitute Ltd co invoiced my Ltd Co.

5) This was nearly 10 years ago and I think there were some VAT issues with regards to flat rate scheme to sort out. SJD helped me out with what to do at the time.

[jmo21]

Firstly check the detail of your sub clause. What does it say about client giving approval. It's likely you are going to have to introduce them to the client first. If your contract is written properly they shouldn't be able to say no for no reason.

and of course, even if the sub clause is watertight, they could still boot you out as normal.

[northernladuk]

I've done it once, when I was direct to a client. Process I followed was:

1) I cleared it with the Programme Director first who, as a contractor himself was fine with it.

1) An agent I trusted found me someone he knew that was decent, and a good skill set match and introduced us.

2) I did a 1 week handover, both of us onsite, only my Ltd co billing for that week.

3) I continued to bill the client for the remaining duration of the contract.

4) Substitute Ltd co invoiced my Ltd Co.

5) This was nearly 10 years ago and I think there were some VAT issues with regards to flat rate scheme to sort out. SJD helped me out with what to do at the time.

Nice post OS.. Care to expand on the agent input. How much did this cost you or did he just provide you with some CV's as you had a good relationship?
What do about monies during the handover? I assume you paid the new guy and you took the hit for a week?
Did you take a cut or did you just flat it out?
How much time did you have to spend looking after the guy or was it fire and forget?

[psychocandy]

Never seen or heard of anyone whos ever done so.

[northernladuk]

Never seen or heard of anyone whos ever done so.

Yes you have.. Three posts up......

And with the number of 'my mate' tales you have I'm very surprised you couldn't make a situation up.

[oracleslave]

Nice post OS.. Care to expand on the agent input.

How much did this cost you or did he just provide you with some CV's as you had a good relationship?

He was a buddy I used to play golf with so no charge from him for throwing me a few cv's. He'd placed me on a gig for 18 months before so I knew him pretty well.

What do about monies during the handover? I assume you paid the new guy and you took the hit for a week?

I didn't pay him for the handover, he was on the bench so was prepared to suck it up for a week to secure the gig which was minimum 3 months but likely to run for another 6 so this gave me a decent bargaining stance.

Did you take a cut or did you just flat it out?

I didn't give him the full rate - think I kept back £50 a day but from memory with the flat scheme implications I didn't make any money by doing that. A small price to pay though for being able to get out, without letting them down and going onto something else.

For what it's worth - client was not the beeb but the other one where Simon Cowell et al earn a fortune.

How much time did you have to spend looking after the guy or was it fire and forget?

Fortunately - nothing that couldn't be handled by email so I pretty much was able to just let him get on with it whilst being contactable. After my Ltd Co contract ran out - they engaged him directly which I was fine with.

[northernladuk]

Interesting. I'd say you've been incredibly lucky on a many phases of that to make it work but nicely done.