What % should the middle man get?

[bigbadboss101]

Say for example Encana goes thru Firm X to hire you. What is the range of cut the contracting firm get for I.T. work? I am asking because it's contract renewal time and now I know what company pay firm, and what firm pay me andwant to negotiate.

Would 20-25% be normal? Many firms get less than 20% cut, or many get more than 35%?

[sputnik]

If you are looking at IT work with Encana go independant through RIS. They only take $3/hr and you get your full liability insurance through them.

Several people in my group use them. SI Systems and Bowen take way more.

If you are going to be an employee of a contracting firm with full benefits, perks and vacations then expect them to take 20-25%. I guess for you, you are already with a firm so you are stuck with them as you probably have a non-compete agreement signed.

[bigbadboss101]

I am working out of town actually but looking to be back in Calgary. Friend told me about RIS so I will give them a shout.

[sputnik]

Are you currently working for EnCana?

[Mikaldor]

Depends on the situation for the % cut.

1. On a flowthrough basis: i.e. Encana knows you, and wants to hire you but as a contractor want to send it through an agency to third party the relationship. Agency provides payroll, insurance etc. Then the average markup is between 3 - 10% with most large companies negotiating a flat hourly fee between 3 - 5 per hour. This is usually paid by the company, not the contractor, unless the contractor is not incorporated. Then a admin fee for payroll is usually deducted, generally $2 - 4 per hour.

2. On a agency basis: i.e. Encana wants X position, agency finds the contractor and introduces to Encana, and that person is hired to do the project. Agency provides all insurance etc, but the markup to the company is much higher so that they get paid for their search activity. This varies depending upon the agency and the job, but typical markup is between 20 - 55%. This is again all paid for on the company side, unless the contractor is not incorporated, at which point the above payroll admin fee would apply.

On longer term contracts you may be able to negotiate the cut, but most agencies get you to sign a pretty restrictive agreement which limits your ability to negotiate, and prohibits you from switching agencies at contract renewal time.

[Toms-SC]

Do not contract if you have a choice. Do not get caught in the vicious cycle. I got stuck with CompuGen but was able to kick the contract and get out due to me going back to school. It is MUCH better for you to take the time to find a real position directly for the company then to get stuck in a contractor group.

[bigbadboss101]

I do not work at Encana btw. Few of my friends do and enjoy it. Anyways I am up North and gonna be back in Calgary shortly. Just want to maximize my % and want to see other's opinions as to % split.

Thanks for the replies.