• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Agency Payment terms

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #11
    Originally posted by 7656 View Post
    This is the first contract (6 months term). The role is - IT Consultant (Tier 4).

    I am really not comfortable with these terms as I am left out of income for nearly 60 days. Also I am not sure if I am paid should a client company decide to cancel the contract half-way through...

    Has anyone here had a case when you were able to renegotiate these rules?
    A contract is always about a negotiation, but I can guarantee you that the agency will use the old "these are out processes and we are not set up for anything else" line.

    As for the payment if the contract is cancelled, it depends of you are opted out or not, but that's what notice periods are for anyway
    Originally posted by Stevie Wonder Boy
    I can't see any way to do it can you please advise?

    I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

    Comment


      #12
      Originally posted by 7656 View Post
      This is the first contract (6 months term). The role is - IT Consultant (Tier 4).
      I hope that is their tier'd payscale and not a statement on Visa status.

      I am really not comfortable with these terms as I am left out of income for nearly 60 days. Also I am not sure if I am paid should a client company decide to cancel the contract half-way through...

      Has anyone here had a case when you were able to renegotiate these rules?
      That's your problem really and part and parcel of contracting. I thought it wasn't too different at some permie roles as well? It's highly likely they are on worse terms than that from the client so they maybe doing some factoring you are not aware of. Terms with the client could possibly 90 days or more.

      If your contract gets canned you will get paid for every day you have a signed timesheet. It should state that in the contract. You do not get paid for any days you did not work so if you are expecting full payment of 6 months if you get canned after 3 you are going to be sorely disappointed. If you get canned for being rubbish then you are going to have to fight for the last months money as well.

      You can renegotiate by threatening not to accept the contract. Politely asking them will not work, they will just say no and carry on regardless. You will have to tell them these are not acceptable so won't be signing unless they are <whatever>. They will have to make a decision then. So yes, some people have managed to negotiate it. A vast majority haven't.

      The upside is you get a months money while you are sat on the bench for a month...

      You have had your contract checked for IR35 and you have a clear definition of the work you will be carrying out? IT Consultant sounds very generic and could very easily fall foul of IR35 if your work isn't well defined... erm... You know what IR35 is right?
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #13
        Thanks everyone - a very useful piece of information in a very short period of time! Much appreciated!

        ...and thanks for the advice re: job title and role definition.

        Comment


          #14
          Originally posted by WTFH View Post
          In your last job, when you were paid at the end of the month, did you ever complain that you were out of pocket for 30 days?
          He's complaining about 60 days.

          Quite a difference, albeit as others have said, pretty normal.

          Comment


            #15
            Originally posted by jmo21 View Post
            He's complaining about 60 days.

            Quite a difference, albeit as others have said, pretty normal.


            Yup, my point being his last job was as a permie, where he will have been paid at month end.
            …Maybe we ain’t that young anymore

            Comment


              #16
              In 5 agency contracts my worst payment terms have been weekly invoicing and 14-day settlement.

              The direct-to-client contracts have been quite a different matter though!

              It's hard to understand some of the sentiment on here - to paraphrase "you're a business now, suck it up".

              Well, you're a business now, negotiate your own terms. Weekly invoicing is not a big ask.

              Comment


                #17
                Originally posted by northernladuk View Post
                Not too sure about that. Your cashflow isn't their problem, particularly if their processes are set to 28 days. ...
                As pointed out, your cashflow is there problem if it affects your ability to do the contract. Even S3 agents seem to be aware of this and have offered flexibility at the start. It's not that uncommon - in fact I'd say that it's almost approaching standard practice with some agencies.

                For the OP - everything is negotiable. Whether you can win or not is another matter, but if you don't negotiate, you get nowt.
                Down with racism. Long live miscegenation!

                Comment


                  #18
                  I have to disagree, your personal financial position is not their problem as they have engaged a business not an individual to complete the work, otherwise they would've gone with an employee <insert snide IR35 remark>.

                  And with that in mind in my opinion you should ensure you can afford to coast on personal finances when starting out contracting as the OP is (your risk appetite will vary the length but 3 months would be my minimum and if you don't have to use it then all the better, right?), rather than relying on a quick return from your new limited business.

                  One of the best pieces of advice I received when starting out was that business finances and personal finances are never the same thing.

                  Also in my experience with S3 they offer shorter payment terms via their time-sheet/invoicing web portal, for which they will take a percentage of the invoice value.

                  Comment


                    #19
                    Originally posted by WTFH View Post
                    Yup, my point being his last job was as a permie, where he will have been paid at month end.
                    quite....and my point is..... your point is irrelevant. 30 days as a permie is clearly standard.

                    He is worrying about something that is double that time period. And we are telling him it is normal

                    Comment


                      #20
                      60 days is certainly not normal, unless you are going direct.

                      Has anyone here had a case when you were able to renegotiate these rules?
                      Yes I have.
                      There's no way I would want someone holding 60 days of my money, simple as that.

                      If the agency goes bust, you will most definitely be the loser.
                      No one is too big to fail, look at Enron

                      This:-

                      For the OP - everything is negotiable. Whether you can win or not is another matter, but if you don't negotiate, you get nowt.
                      The Chunt of Chunts.

                      Comment

                      Working...
                      X