RE: What is a reasonable cut that a contracting company should take?

From: Greg van der Gaast (greg.van.der.gaastat_private)
Date: Tue Dec 17 2002 - 17:28:56 PST

  • Next message: David Humphrey: "RE: What is a reasonable cut that a contracting company should take?"

    Brian,
    
    20-25% is quite competitive in most circumstances. I've seen overheads
    as large as 50% for freelance consultants but such high rates usually
    involve the contractor to cover certain expenses such as transport,
    lodging, insurance, etc.
    
    My current contractor keeps 65% of my rate, but I am guaranteed a fixed
    amount every month even when I am not actually working (retainer fee) as
    well as a cumulative 3 days off a month, insurance, car, gas, computer,
    cell phone, etc.
    
    So the pay is relatively little, but it's a lot of security and I can
    always go off on another project for myself where I cash in 100% while
    having my costs (car, cell, insurance, gas, laptop) covered by my
    current 'full time' contractor. I can take time off, do it when they
    don't have anywhere to put me to work, or even buy hours out of my
    obligation to them (costs me 30 an hour and I can go freelancing for 150
    an hour).
    
    So basically 20-50% cut based on 'security' (as in employment security)
    On your own: pay 20-25% to contractor
    You're covered: pay 50% to contractor
    
    Hope this helps.
    
    Cheers,
    
    Greg van der Gaast
    Ordina SDS West
    Security Services
    
    -----Oorspronkelijk bericht-----
    Van: Brian Cahill [mailto:bcahillcisspat_private] 
    Verzonden: Monday, December 16, 2002 9:55 PM
    Aan: securityjobsat_private
    Onderwerp: What is a reasonable cut that a contracting company should
    take?
    
    
    Hi,
    
    I am submitting myself on a security project via a contracting company.
    
    They will take a piece of the hourly rate.  With that, what is a
    reasonable 
    cut that I should expect the contracting company to take?
    
    Thanks,
    
    Brian
    
    
    
    
    
    
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