Fixed term contract agreed in writing - now pulled due to funding - can I claim?

[ric]

Hi

Sorry for question in my first post - but am new to contracting (only have one 3 monther under my belt) and am in the doo-doo. Just been badly let down - a 4 month fixed term was agreed on monday starting next week and they have just emailed me to say sorry but we don't have the funding. In the meantime I have turned down other possibilities as I thought I was secure with this one.....

Can I get some form of compensation? Isn't it breach of contract? I'm sure they would have there laywers after me were it the other way round!

Thanks

Rich.

[cojak]

It might have been agreed in an email but did you sign a contract?


This happened to me earlier in the year and is one of the risks of being a contractor.

My lesson is accept the contract that's in front of you - not the one that's been promised in an email.

Even if you do sign a contract though, it's unlikely that you'd get compensation - it's just the way of the world at the moment.

And it's unlikely that the the client or agent would sue if the roles were reversed, else a lot of contractors who do pull out would be up sh*t creek, and that hasn't been the case.

[pmeswani]

Hi

Sorry for question in my first post - but am new to contracting (only have one 3 monther under my belt) and am in the doo-doo. Just been badly let down - a 4 month fixed term was agreed on monday starting next week and they have just emailed me to say sorry but we don't have the funding. In the meantime I have turned down other possibilities as I thought I was secure with this one.....

Can I get some form of compensation? Isn't it breach of contract? I'm sure they would have there laywers after me were it the other way round!

Thanks

Rich.

The ususal questions applies.

What does your contract say?
Does your contract say that the client is obligated to provide you with work once you have signed a contract?
Did the client state in writing that they had approved budget for your contract before you signed it?
Can you prove negligence on their part?

If I were you, I would move on.

[northernladuk]

Hi

Sorry for question in my first post - but am new to contracting (only have one 3 monther under my belt) and am in the doo-doo. Just been badly let down -

You haven't been let down. You are going through a process that is unfortunate but is part of our way or working and part of the reason we command the rates we do.

4 month fixed term was agreed on monday starting next week and they have just emailed me to say sorry but we don't have the funding. In the meantime I have turned down other possibilities as I thought I was secure with this one.....

Won't be the last time this happens either I can bet.

Can I get some form of compensation? Isn't it breach of contract? I'm sure they would have there laywers after me were it the other way round!

Good plan to start your contracting career by trying to sue one of your clients lol... Lawyers will not come after you, that costs money and and the returns are just not worth it. We are not that specialised or rare that companies can be bothered going through this. The same is converse.

Also, as a contractor you are paid money to work. No money or no work then you have nothing to do or to be paid for. Only permies expect money regardless of input. They could have quite legitimately taken you on at 9.00 am Monday, offered you notice at 9.01 and at 9.02 told you there is no work for the next <whatever your notice is> and you don't get paid. It is the same difference.

You are business now and you have to think of this from a business perspective. Not an ex permie. There were no tie in clauses, there is a notice period but as you can see that is pointless.

It's one on the chin and move on time.

[northernladuk]

[QUOTE=pmeswani;1175949]The ususal questions applies.

Did the client state in writing that they had approved budget for your contract before you signed it?
Can you prove negligence on their part?
[QUOTE]

Why would a client state in writing there is budget? What has that got to do with a contractor?
How can they be negligent and again what has that got to do with a contractor?
He works for money. No budget = no work = no money. That's about as far as it goes.

I would say these are far from usual questions.

[pmeswani]

Why would a client state in writing there is budget? What has that got to do with a contractor?
How can they be negligent and again what has that got to do with a contractor?
He works for money. No budget = no work = no money. That's about as far as it goes.

I would say these are far from usual questions.

That is exactly my point! The OP doesn't have a case to answer unless the client has stated in writing, as part of the contract, that there definitely a job / role for the OP to go to.

[northernladuk]

That is exactly my point! The OP doesn't have a case to answer unless the client has stated in writing, as part of the contract, that there definitely a job / role for the OP to go to.

That permie talk. The client has no obligation to do this for a contractor surely? Thats the whole idea of having a contractor is for the flexibility if it goes belly up? The whole idea of the contract is to say there is a job to go to. That is the idea of it. It has a start date and has a role profile. Again surely that is enough to say there is something to go for.

[Wanderer]

That permie talk. The client has no obligation to do this for a contractor surely? Thats the whole idea of having a contractor is for the flexibility if it goes belly up? The whole idea of the contract is to say there is a job to go to. That is the idea of it. It has a start date and has a role profile. Again surely that is enough to say there is something to go for.

Really, the only comeback you have is to recover your actual losses due to the breach of contract (presuming there was a contract in the first place and you suffered losses). For example, if you get engaged to do a 6 month job (no notice period, fixed fee of £50k), sign a contract and purchase 10k worth of kit in preparation. Then it all goes tits up you are left holding £10k worthof kit that you don't want or need. So you go and sell the kit for £8 grand taking a £2k loss. Technically, you can persue the other party for breach of contract for the £2k loss you made. You can't however, persue them for the £40k that you were going to bill out in consultancy fees for the duration of the contract.

In reality, you have to grin and bear it and focus your energies on the next project. That's part of being a contractor.

[Support Monkey]

Thats Life! as Northernlad said "it Won't be the last time this happens either I can bet".

Its your first let down so spend a couple of months sending emails and making phone calls feel betrayed and let down and hard done by and become more bitter and twisted as each day passes, get it out of your system now while you can then next time you will do like the rest of us do when this happens and just move on!

by the way a fixed term contract is not really a contract, its permanent employment in a cunning disguise