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Agent gone bust

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    #21
    Feeling your pain, there's around 12 of us at Research Councils in a similar boat. Most have around 2-3 months of outstanding invoices with Pendragon.

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      #22
      First off, commiserations, been there, done that, got the hole in my bank balance

      So far the advise has been right, do not submit timesheets, they will just go in to a black hole where the money goes to other people (banks/taxman)

      Next assess the situation with the client, do they need you? are you mid project? would it be costly/pain in the ass for them to replace you? If yes to any of these you should be in a good situation

      Then go talk to the client and feel them out and see what they are willing to do, some have really crappy legal department that run scared in situations like this and will do nothing, others take a more realistic approach and realise they can ignore the receivers on any outstanding monies owed that agency does not have documentation for, aka unsubmitted timesheets (laughable that receivers think they can send someone to check client timekeeping system without clients permission)

      Now few things might happen:

      Receivers might negotiate with another agency to buy up your contracts (ps you don't have to agree to this), new agency might make agreements to pay withheld timesheets, because they will receive money from client. But make sure you have commitments in writing/new contracts before you submit those timehseets and trust nothing the receivers say, remember they do not work for you so they have no real obligation to you

      This solution was common in boom times, under current market though….

      Other thing you might be able to do, if client is willing and wants to keep you happy, is be able to negociate this yourselves, aka you or client go find new agency, negociate new contracts (and if clever negociate lower agency margin, maybe something to tempt client with?) and get new agency to cover the back log of timesheets

      Basically if clients want to keep you their main concern will be that they don't end up paying twice, if you can find way to do this it should be sortable for unsubmitted timesheets, money owed on submitted ones is gone I am sorry to say, receivers will string you along but doubt you will ever see a penny, you are to far down the list and most agencys don't have that much in assets

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        #23
        It always hurts to know that if you were an employee, your wages bill is top of the debtors list when a company goes bust, but as suppliers of services you are bottom of the list, but as a taxpayer, the government sees you as just the same as the employee.

        Labour government that is.

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          #24
          What hurts most is knowing that, in the typical agency model, there is only 1 generator of wealth, and that is the work that you do for the client. OK, if not for the fine agency folks you would never have found the contract, etc etc: but it is all about your work. So how come you are last in line for the money that your work earned?

          It would be better to contract directly with the client, with a separate contract between you and the agent to pay their cut.
          Step outside posh boy

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            #25
            Originally posted by DimPrawn View Post
            but as a taxpayer, the government sees you as just the same as the employee.

            Labour government that is.

            Hopefully new Govt soon, or will it be like the words in "The Who" song? 'Meet the new boss, same as the old boss etc etc"

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              #26
              Interesting to note that as of 2/12/2009 (today), a procurement person at the Met Office has recommended the Pendragon Account Manager on Linked-In along with the message along the lines of "sorry our relationship has come to an end due to change of preferred suppliers".

              Wonder if the cushy number Pendragon had with the MO has caused their demise now it`s over? The relationship probably helped Pendragon cashflow in the past, hence the late payments while Pendragon used Met Office cash to pay other contractors working elsewhere while hoping the money would arrive from other clients to pay the Met Office lot.

              Wonder who the new preferred supplier is, Computer Futures ? (another crap one)
              Last edited by SuperZ; 2 December 2009, 13:23.

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                #27
                Originally posted by Tarquin Farquhar View Post
                It would be better to contract directly with the client, with a separate contract between you and the agent to pay their cut.
                That would probably be worse.

                Under current system if client goes under, agency still owes you, under what you propose you would still be at bottomof list to get money from clients receivers but still owe agency their cut regardless

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                  #28
                  Originally posted by Not So Wise View Post
                  That would probably be worse.

                  Under current system if client goes under, agency still owes you, under what you propose you would still be at bottomof list to get money from clients receivers but still owe agency their cut regardless
                  Unless the agency has one of those pesky "you don't get paid if we don't get paid" clauses.
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                    #29
                    i feel your pain and anger too. been there and lost that.

                    for those that have withheld you can always try buy your way out of the old contract. for a fee the administrators may provide a release letter that you can present to your client - then you can invoice direct or via another agency.

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                      #30
                      Pendragon had one of those "you don't get paid if we don't get paid" clauses in our Met Office contracts.

                      It should really have said "you don't get paid even if we do !!!"

                      No surprise but there's not much enthusiasm here to attend the creditors meeting. Would like to know if anyone at the Law Society are likely to contest things. If they don't then there's not much point anyone else doing so!

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