Rate Negotiate due to change in Requirements (on-call)
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    Default Rate Negotiate due to change in Requirements (on-call)

    Hi... first post, been reading every day for a few weeks though trying to get up to speed as I just started my first contract.

    The role has a lot more responsibility and risk attached to it than was apparent (...huge amounts more) during the initial contract negotiation and being a newb I didn't want to push the rate, so I am getting fleeced, which is apparently par for the course on the first one.

    The client has introduced (a previously unmentioned) on call support element with their standardised compensation offer.

    Now I am not convinced on-call will be a doddle as it's a big piece of software that's about to have a big bang release, so I imagine there will be teething problems.

    Would it be appropriate to ask for an increase in my standard daily rate given the responsibility and risk that was not mentioned originally, using the on-call amendment as a starting position? As the on-call rate is based on standard rate this might also just about make on-call worthwhile.

    It's worth noting that the client has struggled to recruit hence the amendment, which in theory gives me a stronger position but could be construed as taking advantage of a difficult situation.

    Client definitely will not miss the money (they will pay the same; more than double my rate) but the chain of firms/agents in between will begrudge their margins shrinking.

    I look forward to your queries and opinions.

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    Being given extra duties after you've signed the contract and the fact they can't recruit a permie so they go a contractor sounds like you've got some big IR35 problems.

    What does your contract say about all these extra duties? I imagine it's just a job spec rather than a defined list of deliverables which just adds to your problems.
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    Quote Originally Posted by northernladuk View Post
    Being given extra duties after you've signed the contract and the fact they can't recruit a permie so they go a contractor sounds like you've got some big IR35 problems.

    What does your contract say about all these extra duties? I imagine it's just a job spec rather than a defined list of deliverables which just adds to your problems.
    Contract has been deemed a-ok for IR-35 as the holy trinity of mutual obligation, direction of control and right to substitution has been met.

    However your inclination is correct, there's no defined list of deliverables, it's very generic.
    Contract stipulates I can not be paid for over time & weekends so will need to be redone.

    Does expecting me to work on call point towards ir-35 ?

    I am happy with the contract & the work, only contention is the rate, especially if they are going to add out of hours support.
    Last edited by aft; 9th August 2017 at 22:35.

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    But working practices trump the contract. By asking you to do extra stuff over and above the contract you could be falling in to D&C. Doing in call work isn't a pointer really. Being told to do it when it's not part of the contract does. That said I'm not a massive fan of on call work for contractors. It smacks of an enduring role but should be OK if handled properly.

    If this is work above and beyond the original agreement you need to get a new contract drawn up covering this which will also give you the ability to renegotiate the rates to suit.
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    Quote Originally Posted by aft View Post
    Contract has been deemed a-ok for IR-35 as the holy trinity of mutual obligation, direction of control and right to substitution has been met.

    However your inclination is correct, there's no defined list of deliverables, it's very generic.
    Contract stipulates I can not be paid for over time & weekends so will need to be redone.

    Does expecting me to work on call point towards ir-35 ?

    I am happy with the contract & the work, only contention is the rate, especially if they are going to add out of hours support.
    First make sure you know the names of the people at the client who deal with the finance and contract details.

    Next tell the client manager verbally that wasn't part of your original contract so they need to state exactly what they want and then you will give them a price for it.

    The client may get p*ssed off with you doing that and if they kick off, follow up your verbal statement with an email from your business email account.

    Refuse to do the work until it is sorted pointing out you are not insured to do so.

    Also don't be surprised if the agency doesn't support you.

    If it comes to it and the client won't negotiate then you have to leave as they mislead you at interview.
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    As SE an NLUK said you need to formally get your contract updated to cover the new deliverables.

    You are in a reasonably strong position though. You're in the door, you're available and they failed to find anyone else to do it. So be polite but firm.
    If they start arguing just say things like 'my insurance covers work stated in the contract not additional extras'.
    The agent might not be helpful but he is key. He'll be the one to update the schedule and has to agree the new rate.

    Whatever you decide to do you must stick to your guns though.

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    Always problematic when this sort of thing like on call comes up. To be honest, I generally have no problems with clients calling me out of hours occasionally if its just a quick call. I've even done on-call once or twice adhoc for free if the client is good to me.

    Current client is and is happy for me to bill TOIL x1.5 whenever I work extra which they dont have to. So I'm ok to be flexible. (yes its inside IR35).

    But if it becomes formal oncall rota then something needs sorting. In the past, I've found some clients will think its ok to pay same as permies get (£30 or something crap like that!). Umm no. Or expect it for free as part of the deal.

    One client I had said they'd pay me for any time I spent if I got called. Tidy thought I. BUT they were only willing to pay for time actually on site. i.e. I'd have to drive 50 miles for an hours, could be on site for 30 mins, drive home and get 1/2 hour. Umm no.
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    Also reminds me of another client. Called all contractors into meeting. Said right we're covering 24/7 for next few weeks so you've all got to do 12 hour shifts, night and day and weekends. There was almost a riot because everyone assumed it was flat rate.

    Then they sorted contract with the agency. 1.5x for 12 hours. 1.5 times for nights. 1.5 times extra for satrdays. 2.0 times extra for sundays. All cumulative. Work that one out - for a 12 hour sunday night they paid 1.5x1.5x2.0 hours = 4.5 days.

    Lets just say the riot was avoided! I worked a sunday night, mon ,tues, wed = pretty much over 11 days billed. Knackered mind and alas it was only for a week.
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    If it is likely to go wrong it might not be too bad.

    I was once on a daily rate. I worked 24 hours and billed 3 days for it.

    I hope you are looking round for another gig?
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    Quote Originally Posted by northernladuk View Post
    Being given extra duties after you've signed the contract and the fact they can't recruit a permie so they go a contractor sounds like you've got some big IR35 problems.

    What does your contract say about all these extra duties? I imagine it's just a job spec rather than a defined list of deliverables which just adds to your problems.
    As always it depends. If this is on-call to support an implementation (e.g. cut over period) it might be OK. This could always have been within the scope of project / deliverable based duties, but it is now clear what the required working arrangements are. This should be manageable outside IR35 if the OP is canny about how the arrangements are structured, but it is tough when you're new at the game. Perfectly reasonable IMO to then negotiate a rate for this work (IANAL etc.).

    If it is a 'can you pitch into help BAU support' request, then that's a massive red flag.

    Nice to have an interesting well posed question. Best of luck, OP.
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