IT Contracting

[SteelBlue05]

If you have been quoted the above rates from a number of sources then that to me would imply that is what the going rate is.
C

I've been quoted 3 different rates for the 1 contract (I talked to 3 different agencies about one particular contract), and quoted 2 different rates for another one. So it seems to be quite variable, probably a case of the agency offering as low as they think they will get away with. Seems negotiable anyways.

 

[Capaill]

Thanks Sol28 and Darag for that.

So the norm would be that my limited company would be contracted to the agency rather than the client?

Yes

Also as it is a contract and the client wished to stop the contract after say 2 months of a 6 month contract would I still get paid for 6 months work?

Your contract is with the agency so it depends on what the terms and conditions are regarding that contract. But I would guess that you would get paid for the 2 months and then whatever notice period if any in the contract with you and the agency.

C

 

[SteelBlue05]

Very few (generally small) clients will deal directly with your company. Most will want to deal with an agency. Many big companies have "preferred suppliers" which will include one or more agencies and simply never hire contractors directly. Also, apparently there is a fear that directly hiring a contractor directly (for contracts longer than 3 months) in theory could allow the contractor to be considered an employee.

Why wouldnt a client deal directly with my limited company as the relationship is between the 2 companies rather than the client company and the contractor.

I understand that something like the above scenario may happen if the client hired a contractor directly who was a sole trader maybe.

 

[darag]

Why wouldnt a client deal directly with my limited company as the relationship is between the 2 companies rather than the client company and the contractor.

I'm a sole trader so I'm not an authority but as far as I know you are not a normal employee of your company. Your company doesn't pay employers PRSI for you for example so you have a somewhat different status in the eyes of revenue than a regular employee doing work for a client.

As I said, this fear has never, as far as I know, been realised whether with a sole trader or owner/director but companies seemed to become conscious of the potential for revenue to interpret Irish law along these lines during the IR35 controversy in the UK. Big companies are just being very careful/paranoid.

 

[RainyDay]

I've been quoted 3 different rates for the 1 contract (I talked to 3 different agencies about one particular contract), and quoted 2 different rates for another one. So it seems to be quite variable, probably a case of the agency offering as low as they think they will get away with. Seems negotiable anyways.

This could indicate that the client has a fixed budget in mind, but the different agencies are deducting varying margins from that budget, resulting in the 3 different rates you pay.