Hi I'm an IT contractor, and was placed in the contract by an agency. I've worked out that the agency is charging the client about 25% commission. Normallly this wouldn't bother me except I did ask for a slightly higher rate but the agency said no way they could more from the client. I was under the impression that normally in this industry (SAP) the usual charge was around 13-15% any idea of what the 'typical' commission is?

It depends - sometimes the client will say the most we will pay the person is £500 a day and you will get your rate on top. Sometimes they will say £500 is all there is so you either have to gte your candidate to accept less or take a hit on rates.

This conversation really needs to take place prior to starting under a contract.

I'd say 1.5-2.0% commission is a fair fee for the agency, considering their 'value-add'. LOL.Pimp my ride.

Agent gets me a contract = £500 to me. £100 to agent. Fail to get contract = £0 to me. £0 to agent.Value add of agent to me = £500

Flawed logic. The agent has not solely created the £500 of value. Remember that the contractor had to do work for the client to make that money (as well as the agent's £100).

It is a competitive market. If you think it is unfair then get your own contract. If you can't then you are £500 a day better off despite the cost of the agent.