The Situation
An industrial manufacturer uses a staffing agency to place 60–80 temporary production, warehouse, and skilled trades workers per week across its Indianapolis facilities. The agreement includes a quarterly volume rebate, a tenure-based bill-rate reduction, a hard cap on markups, and an invoice accuracy guarantee. With nearly 2,900 weekly line items per year across dozens of workers, HR and AP processed invoices in bulk — nobody tracked whether long-tenure workers got their rate reduction, whether any worker’s markup exceeded the cap, or whether quarterly thresholds were claimed.
Value-Claiming Clauses
Section 3.3
Quarterly Volume Rebate
3% rebate on all amounts billed in any quarter where spend exceeds $750,000. Claim within 45 days of quarter-end.
Section 3.4
Tenure Discount
5% bill-rate reduction for any associate on assignment more than 90 consecutive days, effective day 91.
Section 3.1
Bill Rate Markup Cap
Markup may not exceed 42% of base pay (38% administrative). Base pay and bill rate disclosed on every invoice.
Section 3.5
Invoice Accuracy Guarantee
2× the error value credited for any identified billing error (hours, rate, duplicate, or math).
What the Analysis Found
2,842 weekly staffing line items were analyzed. Actual markup was calculated for every worker on every invoice, individual tenure was tracked to catch missed discount triggers, and quarterly spend was aggregated for rebate evaluation.
Q2 Volume Rebate
Q2 spend of $1.12M exceeded the $750K threshold.
$33,513
Q4 Volume Rebate
Q4 spend of $1.06M exceeded the $750K threshold.
$31,926
Tenure Discount Not Applied
15 workers past 90 days on assignment were still billed at the full rate.
$18,740
Markup Cap Violations
Three workers billed at 45–48% markup, exceeding the 42% cap.
$3,850
Billing Error Penalties
One duplicate charge and one incorrect rate; 2× penalty per contract terms.
$1,350
Total Uncaptured Value
$89,379