How to R.E.V.I.E.W agency (people) costs smarter

Many projects we review are heavily supported by agency staff and labour.

In terms of agencies what or who do we mean?

We are considering formal agencies down to one man bands, albeit the latter are becoming rarer as IR35 finally starts to take hold. The result of this ruling starting to bite, is that one-man bands are now being forced to work through more formal agencies or are being taken on by main contractors for project specific employment contracts.

It is workers in the main who come to a project largely to work under the day to day instruction of the main contractor. So we aren’t looking at formal services being provided by professional consultants or labour only subcontractors* – these would come under the SOCC
 Subcontract.

We try and keep it simple, using the acronym R.E.V.I.E.W, which offers pragmatic guidance on how to plan and deliver assurance work.  This guide will provide a useful checklist and structure for someone embarking on an agency cost review.

How to R.E.V.I.E.W agency (people) costs smarter

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In this fourth paper of our latest series we provide some simple steer on how to review agency (people) costs in defined cost contracts. It will be followed with papers on further cost heads including agency (people), plant and materials, equipment, subcontract, manufacture and fabrication. We hope you find it helpful.

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