contracting direct

**SuPaStA** · 8 January 2014, 13:12

Originally posted by Vico View Post

I am a civil, limited company contractor. The six month contract job I was doing finished in the first month of December just before Chrstmas and was not renewed.

Just yesterday the company/client got in touch to inform me of their decision to hire me again with possible start date of January the 20th 2014. I raised the idea of contracting direct with the client during the telcon and they are very keen on this.

I am relatively new to contracting work and would like to certain there are not going to be negative implications i.e. breach of contract from the previous agency agreement?

Kind regards

Check the clauses in the previous contract regarding going direct and if I'm not mistake if you "opted out" then it also has implications.

**DirtyDog** · 8 January 2014, 13:22

Originally posted by SuPaStA View Post

Check the clauses in the previous contract regarding going direct and if I'm not mistake if you "opted out" then it also has implications.

The client should also check their contract with the agency, which in all probability is more restrictive than your one.

**Sausage Surprise** · 8 January 2014, 14:42

Don't tell the agency

**northernladuk** · 8 January 2014, 16:05

What benefits are you expecting to gain going direct though? It isn't always a given you will get more cash going direct. Depends on how the client did business with the agent. Just because a client gave an agent £400 of which you got £350 it isn't a given you will get £400 by going direct. The client should be looking at making a saving as he isn't paying an intermediary.

If you can get to the bottom of the rates and there is no benefit here then why else would you consider muddying the waters?

**javadude** · 8 January 2014, 17:24

Originally posted by northernladuk View Post

What benefits are you expecting to gain going direct though? It isn't always a given you will get more cash going direct. Depends on how the client did business with the agent. Just because a client gave an agent £400 of which you got £350 it isn't a given you will get £400 by going direct. The client should be looking at making a saving as he isn't paying an intermediary.

If you can get to the bottom of the rates and there is no benefit here then why else would you consider muddying the waters?

But if you can get £375 then everyone's happy (apart from the Agent).

**VectraMan** · 8 January 2014, 17:38

If you do go through with it, be very clear on the payment terms and make sure they stick with them. You don't want to sign up and then discover they won't pay you for 3 months after invoice.

That's really the only downside to going direct: you might have more of a battle to get your money.

**northernladuk** · 8 January 2014, 19:18

Originally posted by javadude View Post

But if you can get £375 then everyone's happy (apart from the Agent).

Indeed. The message is make sure there are tangible benefits for going direct. Don't just assume it's better.

**SteelyDan** · 8 January 2014, 20:09

Originally posted by VectraMan View Post

If you do go through with it, be very clear on the payment terms and make sure they stick with them. You don't want to sign up and then discover they won't pay you for 3 months after invoice.

That's really the only downside to going direct: you might have more of a battle to get your money.

^ this.

However, "be very clear on the payment terms and make sure they stick with them"...IME you can be as clear as you like, but trying to get them to 'stick with them' can be problematic, regardless of what any contract might say.

Early doors of business life, & going direct with a major consultancy a few years ago, I once waited 96 days for an invoice to get paid...naturally I was fuming. Emails/calls to them on the subject got me nowhere tbh. [I had 'strictly 30 days' in the contract, btw.]

Based on this experience, I declined future opportunities with them, which you could say was cutting my own throat but I couldn't be doing with further late payment repetitions.

**Antman** · 8 January 2014, 20:45

I'm direct at the moment and it's 45 days, I've no problem as it is a big multinational, so the money is there and it will get paid eventually, however with smaller companies I'd have my doubts about extending credit terms.

contracting direct