Agent will not supply tradesmens invoices requested by insurance company

I am a contractor to several Letting Agents, some add a mark up on my invoices some don't, however they all suffer the cost of organising quotes and contractors, key management and processing of invoices, as a businessman I dont expect to subsidise others so a mark up is legitimate as far as I am concerned.

The legal line of responsibilty in case of a problem would be Landlord to Agent and Agent to Contractor as the Agent has contracted the job

Insurance companies are not VAT companies as they provide a service not goods, it is standard when invoicing an insurance company for repairs completed for a customer who is vat registered to invoice the job to the insurance co, the VAT to the customer and seperately the excess to the customer linking all 3 invoices on the system, I have prepared invoices like that for 30 years in previous jobs and it has always been that system

I doubt the insurance company is looking out for a fiddle or anything like that, I would suggest it is someone who has got it wrong, the VAT number needs to be the one where the VAT was paid, so if the agent has invoiced on a VAT invoice it should be that agents VAT number, because they would pay the contractors VAT and invoice out there own (with or without a percentage increase due to a mark up)

LUKE P is right as far as I am concerned in his approach, he is selling the ADDED VALUE of dealing with an agent, the Landlord is beneffiting from his experience, knowledge, database of trusted contractors and experience in cost value and time of jobs.....more in the industry should follow his example

What I should also have added is

If the Agent has added a markup then that should not present an issue as it should be stated in there terms and conditions at the begining in plain view.

I have been asked by Councils to provide supplier invoices after invoicing a completed job, I have always refused as they are "commercial in confidence" as far as I am concerned, when one rang me direct I asked for copies of his wage slips before I would consider it...he was not happy about that!

Morning - I comment as an agent - One that does not charge hidden commissions over and above the contractors invoice - we make a handling charge for works over £250 representing 10% of invoice cost. In this case the contractors invoice is in the landlords name as is any warranty of works etc. Our 10% handling charge is a separate agency fees invoice. This covers our time assessing the works, organising quotes, inspecting the works and settling the account - effectively project management - hence handling not commission!

There are various approaches common to all agents - Luke P states the typical and fair approach considering.

Any agent instructing contractors on behalf of the landlord, does so by sub-contracting the job, thus is liable to the contractor for the job. Any commission taken over and above the core invoice price has to be declared in either the said invoice from the contractor or as a separate invoice. In the event the billing name is in the name of the landlord - such arrangements have to be declared within the agents terms of business.

If the billing name is that of the agent then the landlord has no liability to the contractor. That liability is that of the agent, quid pro quo warranty etc. In this event the agent will recharge to the landlord under the agents invoice and there is no requirement for the agent to present his sub-contractors invoice showing any margin of commission - because the agent becomes the "contractor" to the landlord. In this event the landlord relies on the agent for warranty etc subject to the terms of business between agent and landlord. Vat claim where there is any relates to invoice that the landlord pays from the agent and for the agent as vat beneficiary from his sub contractor.

So the devil is in the detail associated with the terms of business between agent and landlord. If these make no reference to commission, handling charges etc then they will be open to dispute and most likely unenforceable.

Within the current market place where landlords are driving rates down agents margins are under pressure and these commission opportunities are being more commonly exploited - where it falls foul is when it done without declaration and agreement.

So when the insurer is asking for the sub-contractors invoices of your contractor (your agent). Assuming the agents terms are appropriate there is no requirement upon the agent to present them anymore than a retailer would. A retailer does not have to declare his cash and carry price for the food he has sold you.

Thus the agreement you have with your agent represents a compromise when a third party such as an insurer is involved. The upside is that you only have one port of call for warranty of the works - the agent.

Hope this helps give you the direction you are looking for.

Charles Orlebar