Direct Contracts – Company refused to take Freelancer direct

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Direct Contracts advice
Direct Contracts advice

Direct Contracts

This reply, on Direct Contracts, was posted as comments after one of our articles.

It shows the problems that contractors have when tyring to do so.

Contractors Going Direct

Agencies claim that they have to take a fair percentage of your rate to cover the “finding fee” and “build the relationship with the client”. This this just proves that it‘s not the case always.

Regards the 1st comment of not being able to go direct, I had a similar situation at a place I used to work at.

I once asked the management why a contractor couldn’t go direct. My friend wanted to work for them.

The response was so stupid, I was left open mouthed.

SAP Accounting System

Basically they said they only wanted a few invoices to enter into the SAP accounting system (i.e. from 2 or 3 agencies), rather than 20 from the contractors individual companies.

Considering that we were billing monthly I couldn’t see why the extra effort would not benefit them. That’s because the cost saving of not having an agency bump up the rate with their margin of 15 to 20% would far outweigh the extra time it took for some admin bod to enter the invoices.

How stupid was I to even think a clients company would like to reduce un-necessary costs!

ITContractor.com Comment

I know how he feels.

I came across the same type of thing when I tried to get contractors in direct at places where I worked.

Some of the reasons given were really crass.

One often quoted was that there was accountability which is whole load of horsesh*t.

Another was that ‘if the person is no good then the agency will replace him’.

That takes the biscuit.

Why would you want to take someone else from an agency that gave you someone who was no good in the first place.

Loads of agencies

There are loads of people out there and loads of agencies just desperate to supply them.

Does anyone else have experience of trying to go direct or getting someone else in direct and been given a crappy, nonsensical excuse?

Perhaps we should have a prize for the most idiotic.

Direct contracts make sense to both contractos and companies.

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