Value · The chain and channels · lesson 3.1 open
Anatomy of the chain
Who signs with whom, who pays whom, and why you need to map your chain before accepting a contract.
Promise: you map the chain of any offer in five minutes and know which questions to ask.
Why it matters
In international contracts, it is common for money to pass through more than one company before reaching you. Each company signs with the previous one and, usually, not with you. This affects three things: how much reaches you, when it arrives, and what happens if the end client ends the project.
The diagram
End client ──► Link A ──► Link B ──► You (your PJ [a Brazilian company registered by an individual contractor])
(uses the work) (e.g., vendor manager / staffing) (e.g., consultancy)The number of links ranges from zero (you sign with the client) to three or more. Each arrow is a different contract, with its own clauses.
Four questions that reveal the chain
- “Who do I sign the contract with?” (the name of the company that appears on the first page)
- “Who do I work for day-to-day?” (the end client)
- “Is there any company between the two?”
- “When the end client pays, in how many days do I get paid?” (reveals pay-when-paid)
Asking this is normal. Whoever gets uncomfortable with the question is telling you something important.
What changes with each link
| What you look at | Zero links | One link | Two or more |
|---|---|---|---|
| Rate that reaches you | highest | medium | lowest |
| Payment terms | the client's | the link's | the link's + cascading delay |
| Termination | with the client | with the link | often immediate if the client cancels |
| Bargaining power | yours | partial | low |
| Non-circumvention | rare | possible | frequent and broad |
In long chains, it is common for the clause to state that if the end client cuts the role, your contract terminates without notice. Read the termination clause in your contract before signing.
Map the chain of your current contract (or your latest offer). Write the name of each link and, when you know it, what each contract says about termination and payment. Wherever you do not know, write "?" and turn it into a question.
Common mistakes
- Assuming the end client knows you and answers for you. In general, they have no contract with you.
- Failing to find out how many links exist before negotiating the rate.
Checklist
- Do I have the chain mapped out with all contracts?
- Do I know what happens to my contract if the end client leaves?
Checked on 05/10/2026. Educational content; tax and legal: confirm with a professional.