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10% agent profit back after 12 months

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    10% agent profit back after 12 months

    Who here has ever had this lobbed freely into their contract by an agency??

    "If your assignment is extended for more than 1 year we undertake to reduce our margin by 10% and pass on this reduction in profit directly to you"

    Wot's going on? An agency wanting to give money away? Course, it may be that they are never suspecting a contract to run longer than 12 months.

    The agent is PCR, and a new contractor here working with me has this in his contract.

    #2
    I've worked on several contracts where the agent commission was cut each year. Sadly none of this passed to me, only to the client.

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      #3
      name and claim?

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        #4
        Sounds generous, but it might not be.

        Depends whether it's 10% of the margin itself, or the margin percent minus 10.

        Eg. if the margin was 15% of what the client pays (say £400 a day), then they get £60 a day and you get £340. If they reduce the actual margin figure by 10%, you only get an extra £6 a day.

        If it's the margin minus 10%, then they only get £20 and you get the other £380 per day.
        It's my opinion and I'm entitled to it. www.areyoupopular.mobi

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          #5
          I'm sure it would be the first option. They'd be dropping their margin from 15% to 13.5% say. They'd never drop from 15% to 5%.

          It is an unusual thing to get as standard. Maybe a contractor argued for it once, and the daft agent changed the template instead of just the one contract.

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            #6
            Maybe their margin is really 30% and they felt guilty?

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