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

From: Greg van der Gaast <greg.van.der.gaast(at)ordina.nl>
Date: Tue Dec 17 2002 - 20:28:56 EST


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

Do you need help?X

-----Oorspronkelijk bericht-----
Van: Brian Cahill [mailto:bcahillcissp@hotmail.com] Verzonden: Monday, December 16, 2002 9:55 PM Aan: securityjobs@securityfocus.com
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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