attention day-rate people

[Woodchopper]

hello people.

I have looked on the money sections of the forum but cannot find what I am looking for.

Are the people out there who day rate directly with any of the big companies able to tell me what i should be looking day rate wise, with any of the big companies as a sub eng?

I know the agency rates, so can I assume that It would be within reason to ask for the same rate (or slightly more) that what the agencies are paying their bods if I went direct as Ltd company?

cheers folks 😯

[Ray Shields]

You need to add what area of the world you are talking about and what nationality you are as these also make a difference.

I would expect they would pay somewhere in between what the Agency guy gets and what the Agency gets.

[Woodchopper]

thats what I was thinking along the lines of…between what the guy is getting and what the agency gets… its no skin off their nose (the company) then, as your cheaper that the agency and there to be used as required.

Talking UK waters, for a UK sub eng.

[Andy Shiers]

Depends on your experience chap 🙂

[Ray Shields]

Depends on your experience chap 🙂

Doesn’t seem to count for some of the people that come from Agencies!

[Andy Shiers]

Hmmmmmmmmmm 8)

[T-Boy]

I know the agency rates, so can I assume that It would be within reason to ask for the same rate (or slightly more) that what the agencies are paying their bods if I went direct as Ltd company?

Er, No. Try a considerable amount more.

Experienced people have a pretty good idea of their market, the charge out rates to a client direct, via an agency and all the variants.

Some homework is required on your part me thinks if your Ltd company is to survive 💡

[Phil]

There are pros and cons when going straight to client – do some research.

In a prefect situation you have more control over negotiations and the rate. That’s assuming the company, from an employment law perspective, doesn’t want to distance itself from you as a contractor…

You also have the IR35 tax issue. If you do get to negotiate a contract – it can be difficult to negotiate something away from say the companies standard contract which could fall inside IR35, im not sure how many companies would take the time to agree a contract that is at a much reduced risk of being within IR35.

Oh and hopefully you find that little gem of a company that pays on time, you will be at the bottom of the food chain with most big companies. Worst case scenario 120days+ and no payment.

To sum it up: if you can find a company that pays invoices promptly and agree a contract direct that puts you outside IR35 you can probably go for a rate between what the contractor gets and the agency gets and earn a little bit more.

[Woodchopper]

Thanks for the input. It never occurred to me that I might not be paid on time! Its something you take for granted when your salaried! Also, as mentioned, I shall look into the IR35 rule. Sounds like for somebody in my shoes (3-4years Work-class experience), working via a reputable agency might be a better introduction to being self employed.

[Paul Bond]

Depends on your experience chap 🙂

Doesn’t seem to count for some of the people that come from Agencies!

Not exactly fair – I know some overpaid company employees as well. What you have to realise is that those agency chaps CVs are okayed by your offices! Agency work is driven by market forces, hence the rates change.

[Andy Shiers]

Okay……Depends on your experience and whether you are known 8)

[luckyjim37]

Roughly the company will pay between 15 and 20% to the agency onto of what the agency pays you.

These are not plucked out of the air figures. I know what a couple of the companies would pay me direct and know what I get from an agency for the same company. I have also been in the position of taking guys through an agency and know what they got in there hand.

There are always cases when the agency takes more but an agency would probably never go below 10%.

As for what day rate to expect. Currently that is what you are prepared to work for. If you think you are worth £400 a day ask for it the company may say yes or no and offer you less. That is what negotiation is about. Obviously initially ask for more than you expect.
Speak to an accountant about IR35 it is not as scary as it sounds and neither is CIS or even VAT which you can quickly run into if you are a LTD company. Also don’t forget you need to have your own insurance cover if you are self employed working direct or a LTD company that will be around £800-£1100 a year depending on what cover you need.

Good luck.

[Scott Beveridge]

Hello all,

As Jim said above, there are some of us in the know re:money-to-company-money-to-us situ. So here’s some ballpark figures…

Supt. – Company gets USD 1500 – 1600 employee gets 1000-1250
Supv.- Company gets USD 1000 – 1400 employee gets 825 – 1000

I’ll stop here…. you all can scale the remaining tiers off of this.

Those of you who are not making these numbers for these 2 job tiers, should not be in the business or need to take a negotiating course in uni, whatever…. LEARN HOW TO NEGOTIATE AND LIVE WITHIN YOUR MEANS – Yes, I’m yelling and I’m also tired…..

[David Cornock]

It’s great bandying about these rates of $1k a day but what if you’re in my position.

After finishing 8th in my class at Submec and being a fully certified Pilot Technician Grade 2 I have struggled to find employment in this field.

I have been promised paid work with a company in SEA on condition that I complete a 3 month probationary period where I will receive no pay but will be employed in the workshop with a view to going offshore should the opportunity arise. Obviously they will pay my food and accomodation during this time.

I really would like to make a career in ROVs and I see this sacrifice being worth it in the long term.

[Scott Beveridge]

It’s great bandying about these rates of $1k a day but what if you’re in my position.

After finishing 8th in my class at Submec and being a fully certified Pilot Technician Grade 2 I have struggled to find employment in this field.

I have been promised paid work with a company in SEA on condition that I complete a 3 month probationary period where I will receive no pay but will be employed in the workshop with a view to going offshore should the opportunity arise. Obviously they will pay my food and accomodation during this time.

I really would like to make a career in ROVs and I see this sacrifice being worth it in the long term.

Without getting paid (whether in the shop, cleaning toilets, bending over for yur boss) you are not doing anyone favors… This is exactly what us older farts are trying to preach to you young scabs, wimps, pussies, and back-stabbers. Please do not let your avatar be known with your real name as it will be mud – you’ll really hafta leave the industry then…. Be patient and be a man about it…. Go flip burgers if you have to make ends meet…. In these times (economic suicide), one should be happy flippin’ burgers….

[Author]

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