What does an Agency offer that I cant? What does an Agency offer that I cant?
Page 1 of 2 12 LastLast
Posts 1 to 10 of 12
  1. #1

    Should post faster

    ookook has no reputation

    ookook's Avatar
    Join Date
    Jan 2007
    Location
    la joya del norte
    Posts
    168

    Default 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

  2. #2

    Super poster

    ratewhore has no reputation

    ratewhore's Avatar
    Join Date
    Sep 2005
    Location
    The dark disturbing corner of your mind
    Posts
    4,756

    Default

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


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



  3. #3

    More time posting than coding

    Barriebazg has no reputation


    Join Date
    Feb 2007
    Posts
    259

    Default

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

  4. #4

    Banned

    Kyajae has no reputation

    Kyajae's Avatar
    Join Date
    Feb 2007
    Posts
    1,737

    Default

    Quote 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

  5. #5

    Froglike

    Pondlife - scorchio!

    Pondlife's Avatar
    Join Date
    May 2006
    Location
    Euroland
    Posts
    13,627

    Default

    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

  6. #6

    Should post faster

    ookook has no reputation

    ookook's Avatar
    Join Date
    Jan 2007
    Location
    la joya del norte
    Posts
    168

    Default

    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...

  7. #7

    Double Godlike!

    Bagpuss is good enough for Jehovah!


    Join Date
    Jul 2005
    Posts
    10,066

    Default

    Quote 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.”

  8. #8

    Froglike

    Pondlife - scorchio!

    Pondlife's Avatar
    Join Date
    May 2006
    Location
    Euroland
    Posts
    13,627

    Default

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

  9. #9

    Fingers like lightning

    NetwkSupport has no reputation


    Join Date
    Sep 2005
    Location
    Nowheresville
    Posts
    596

    Default

    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.

  10. #10

    Should post faster

    ookook has no reputation

    ookook's Avatar
    Join Date
    Jan 2007
    Location
    la joya del norte
    Posts
    168

    Default

    @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..

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •