Conflict of Interest

[pauljh]

Hi All,
I have been out of contracting for 4 years and am about to go back in, but an interesting situation is "probably" going to arrise.

Client A uses lots of one man bands and consultant compaines/software companies, including Company B.

I've always had a very close relationship with Client A, my "permy" job is about to end (company looks likely to go bust so I'm getting out before they do), as such I approached Client A about doing some work for them (as MyLtd), they are very up for this, but it would only be a few days a month.

Problem is Company B has offered me a long "full-time" contract and one of their clients is Client A and the chance of me being sent to Client A from Company B is very likely.

Client A will not have an issue with this, but can I do this?, as I'll sometimes be at Client A as MyLtd and sometimes as Company B, we won't be working on competing area's but (from a software development view point) but very close areas (we won't be directly competing with each other as Company B already have a large contract with Client A).

It's "iffy" and I haven't "YET" told Company B about this potential "issue", and as a Ltd company I'm not sure I have too? or should?

Any advice please? before I commit to either..

[VectraMan]

In theory it's neither clients business what you do in the time they're not paying you. However it's hard to imagine Client B won't have a problem with this. So unless you can keep it very quiet it's not a great idea and would likely cost you the (presumably more lucrative) client B.

[MrMarkyMark]

Are you planning to do both roles at the same time?

Or are you hoping to do just the client A contract?
If its the latter, I don't see any issue, maybe I've missed something, or you need to tell us more?

[Darren at Fox-Bartfield]

Conflict of Interest

What's industry of both clients?

Nothing to do with Big Sam and the English FA I presume?

Sounds a little close to the bone on the arrangements alone, suspect client B wouldn't be too happy with the situation so you'd be at risk of losing both.

[jamesbrown]

Yes, I expect client B would have a problem with this. I wouldn't ordinarily inform my clients about my other (parallel) contracts, as it's of no concern to them, but this is a different situation, as it could be difficult for the staff at client A to separate these two engagements (which may reflect badly on client B). Unless your contract with client B has some clauses on exclusivity, it may not be an issue, contractually (we can't tell you that), but it is an issue of courtesy. That being said, I wouldn't preempt this situation. If client B does send you to client A, you can inform them at that point (i.e. a short e-mail, out of courtesy - you're not asking permission here, assuming there are no prohibitive clauses in your contract with client B).

[northernladuk]

Not quite sure what your current contractual relationship is. Are you under any handcuff or poaching agreements currently?

[BlasterBates]

You would need to sort this out upfront with company B. As Client A is already your customer you are not poaching, but you need to have this sorted in your contract before you begin with company B, otherwise If company B were to find out they would assume you've abused your position. If you discuss it beforehand you can agree either that you work only exclusively through company B or they give you an exemption from the normal handcuff clause for this particular client. You don't necessarily need to mention the client by name in your contractual discussion with company B, but you need to be clear with them that you do have concurrent contracts with clients that they also serve.

[MrMarkyMark]

Not quite sure what your current contractual relationship is. Are you under any handcuff or poaching agreements currently?

Good point, unsure what the score is if his current company liquidates though?

Reading it again, it looks like he wants to do both concurrently, I don't think his future perm employer would wear it all, IMO.

[LondonManc]

Good point, unsure what the score is if his current company liquidates though?

Reading it again, it looks like he wants to do both concurrently, I don't think his future perm employer would wear it all, IMO.

What future perm employer?

He's got the option of an ad-hoc relationship with Client A and the potential of a long term full time gig with Client B, through which he could end up onsite at Client A as well.

Personally, I would explain the situation to Client A - that he may potentially be asked to go onsite to them via Client B - and see how they feel, given that the OP says that he has a good relationship with them and whether they feel that a contract at Client B would compromise the ad-hoc, direct work. If Client A don't have a problem then approach Client B when the time arises.

[MrMarkyMark]

What future perm employer?

He's got the option of an ad-hoc relationship with Client A and the potential of a long term full time gig with Client B, through which he could end up onsite at Client A as well.

Personally, I would explain the situation to Client A - that he may potentially be asked to go onsite to them via Client B - and see how they feel, given that the OP says that he has a good relationship with them and whether they feel that a contract at Client B would compromise the ad-hoc, direct work. If Client A don't have a problem then approach Client B when the time arises.

I thought he meant perm, by the term "full time" contract.
I could well be wrong.