Memorandum of Understanding Memorandum of Understanding
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  1. #1

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    Default Memorandum of Understanding

    Hi,

    I'm currently in a contract with a company to provide services to a client of theirs. This client has awarded the next contract to a new company. Both the end client and the new company want me to stay on and work as a contractor for this new company.

    I've signed a memorandum of understanding with this company that they will put profile forward to the client, who in turn will accept me for the role. In the MoU we have a daily rate which we negotiated, i've recently discovered that they are taking a rather large margin. Given that i've yet to sign a contract with them, and that the end client want me to stay am i within my rights to renegotiate my rate before i sign the formal contract?

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    Sounds a bit like MoO to me.

    Given that i've yet to sign a contract with them, and that the end client want me to stay am i within my rights to renegotiate my rate before i sign the formal contract?
    Do you really need an answer to this??!?!?!

    How come you have signed a MoU without really understanding what it is. Read the first two paragraphs of the wikipedia definition and see if you can work out the answer.
    Last edited by northernladuk; 10th July 2013 at 14:26.
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  3. #3

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    Quote Originally Posted by dicky1980 View Post
    Hi,

    I'm currently in a contract with a company to provide services to a client of theirs. This client has awarded the next contract to a new company. Both the end client and the new company want me to stay on and work as a contractor for this new company.

    I've signed a memorandum of understanding with this company that they will put profile forward to the client, who in turn will accept me for the role. In the MoU we have a daily rate which we negotiated, i've recently discovered that they are taking a rather large margin. Given that i've yet to sign a contract with them, and that the end client want me to stay am i within my rights to renegotiate my rate before i sign the formal contract?
    You're within your rights to negotiate, that's what businesses do.

    Given the potential impact on your IR35 status of even being offered such a document, I'd be looking for a HUGE increase to allow for that risk.
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    Quote Originally Posted by northernladuk View Post
    How come you have signed a MoU without really understanding what it is. Read the first two paragraphs of the wikipedia definition and see if you can work out the answer.
    Maybe it's a MoU(ReallyShouldUnderstandWhatUAreAgreeingToBefore USignIt)?
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    Quote Originally Posted by TheFaQQer View Post
    Maybe it's a MoU(ReallyShouldUnderstandWhatUAreAgreeingToBefore USignIt)?
    V good.
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    Quote Originally Posted by dicky1980 View Post
    am i within my rights to renegotiate my rate before i sign the formal contract?
    Hell yes. Go for your life! Even after it's been signed you can renegotiate it (though you are in a weaker position). Heck agencies/clients do it to us all the time so why not. Start out by telling them you have had a better offer....
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    Quote Originally Posted by Wanderer View Post
    Hell yes. Go for your life! Even after it's been signed you can renegotiate it (though you are in a weaker position). Heck agencies/clients do it to us all the time so why not. Start out by telling them you have had a better offer....
    ....unless that is a lie, in which case don't start that way. Get found out lying and you could lose the gig let alone the chance of a rise.
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    Quote Originally Posted by northernladuk View Post
    ....unless that is a lie, in which case don't start that way. Get found out lying and you could lose the gig let alone the chance of a rise.
    Because of course Agencies never lie......

    Don't think of it as a lie, think of it as a negotiation tactic......

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    Quote Originally Posted by Runs With Scissors View Post
    Because of course Agencies never lie......

    Don't think of it as a lie, think of it as a negotiation tactic......
    And just look at the reputation agencies have for it. Just becuase they work unprofessionaly doesn't mean you have to or indeed should.

    A lie is a lie. Not many other negotiation tactics can result in you losing the gig instantly. It's up to you but if you can negotiate properly there is absolutely no need to lie thefore risking losing all for no gain.

    Just MHO but I think you will find clients have an even dimmer view of it than me.
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    Quote Originally Posted by Wanderer View Post
    Start out by telling them you have had a better offer....
    That works well when you actually have something else to go to.

    But when the client objects to being held to ransom and says "OK, good luck with that, then", you have a choice of either crawling and admitting that you lied, or walking into nothing.

    Crawling back isn't going to strengthen your position if you want to negotiate an increase in the future, either.
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