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What does an Agency offer that I cant?

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    What does an Agency offer that I cant?

    A thought thats been brooding in my head for the last few days:

    I've read quite a lot on the boards about going direct, but my question is more along the lines of replacing the agency ( its just idle speculation)

    Say I work for a a big project company, I'm a typical contractor with a ltd and I find the job and work thru an agency.

    The project company has a number of upcoming big projects spanning the next few years

    Myself and X others are are well regarded within the project company and they would be keen to retain our services.

    So, after the first contract ends, I want to increase my rate -

    I personally could:

    a) Attempt to contract directly with the project company - bypassing the agency (assuming no clause that prevents this in my contract)

    b) continue working thru the agency

    but whats to stop the group of us forming a new company that would act as an agency for US? ie our new agency company replaces (in part) the original agency. The original agency still supplies 50% of the contractors, another agency supplies 45% and we provide 5%.

    The project company gets our services at the same rate. We get to cut the original agency out of the equation and if we secure more work in the future we get to hire more contractors thru our new agency and WE take the cut.

    All well and good in abstract theory - but I'm sure there are some flaws in my master plan. I guess I'm asking to be shot down and told what the agency provides to the project company that OUR newly formed agency company couldn't supply.

    Cheers
    The mind is its own place, and in itself, can make a Heaven of Hell, a Hell of Heaven

    #2
    Nothing to stop you moving into a more 'pimpish' role but remember this...


    ...we'll hate you when you're a pimp!!


    Older and ...well, just older!!

    Comment


      #3
      Im interested to see what gets said about this as well...

      Comment


        #4
        Originally posted by ookook
        A thought thats been brooding in my head for the last few days:

        I've read quite a lot on the boards about going direct, but my question is more along the lines of replacing the agency ( its just idle speculation)

        Say I work for a a big project company, I'm a typical contractor with a ltd and I find the job and work thru an agency.

        The project company has a number of upcoming big projects spanning the next few years

        Myself and X others are are well regarded within the project company and they would be keen to retain our services.

        So, after the first contract ends, I want to increase my rate -

        I personally could:

        a) Attempt to contract directly with the project company - bypassing the agency (assuming no clause that prevents this in my contract)

        b) continue working thru the agency

        but whats to stop the group of us forming a new company that would act as an agency for US? ie our new agency company replaces (in part) the original agency. The original agency still supplies 50% of the contractors, another agency supplies 45% and we provide 5%.

        The project company gets our services at the same rate. We get to cut the original agency out of the equation and if we secure more work in the future we get to hire more contractors thru our new agency and WE take the cut.

        All well and good in abstract theory - but I'm sure there are some flaws in my master plan. I guess I'm asking to be shot down and told what the agency provides to the project company that OUR newly formed agency company couldn't supply.

        Cheers
        And we'll hunt you down and torture you by vigorously rubbing your scrotum with a cheese grater

        Comment


          #5
          My 2p worth

          Assuming that you have no prevention clauses there's nothing stopping you going direct. If a group do this together under one company you will have to work out different classes of share to allow different divs to be paid based on the work you do.

          If you decide to 'hire' others, you will have to pay them (monthly?) plus Emp NI, You will also need Emp liability insurance and have to factor holiday pay plus all other legal requirements.

          In addition you will have to cover the delay in payments from the client. 10 people at 500 per day for 90 days is no small sum of cash.

          The other big thing to consider is that if you become an agent you will have to spend all your cash on hair gel, a cheap suit and a 3 series

          HTH

          Comment


            #6
            I dont mean hire them as in permies - I mean just act as the agency for their ltd's - just like the current agency does for me at the moment

            I hadn't factored in the increased expenditure on hair gel though...
            The mind is its own place, and in itself, can make a Heaven of Hell, a Hell of Heaven

            Comment


              #7
              Originally posted by ookook
              I dont mean hire them as in permies - I mean just act as the agency for their ltd's - just like the current agency does for me at the moment

              I hadn't factored in the increased expenditure on hair gel though...
              Will they be happy for you to take a cut if you don't provide factoring services? I am direct with my client, it is almost April and so far this year I have had payment for January.
              The court heard Darren Upton had written a letter to Judge Sally Cahill QC saying he wasn’t “a typical inmate of prison”.

              But the judge said: “That simply demonstrates your arrogance continues. You are typical. Inmates of prison are people who are dishonest. You are a thoroughly dishonestly man motivated by your own selfish greed.”

              Comment


                #8
                5 people at £500pd for 90 days is £225,000 you will have shelled out before being paid yourself

                Comment


                  #9
                  This happened at my last contract, a big wig hirer and firer PM started an agency up hired his own people as contractors, job still got done and the best people were hired, they took a 15% cut of the hourly rate.

                  It went all the way to the top anyway (the guy was mates with the CEO) so there was no grumbles from the client.

                  Comment


                    #10
                    @pondlife

                    It wouldnt matter cause the first people in would be me and my colleagues who form the agency. So we wouldnt be paying out anything to anyone in advance. i take your point though..
                    The mind is its own place, and in itself, can make a Heaven of Hell, a Hell of Heaven

                    Comment

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