Any one started contract on "heads of agreement" ?

[private123]

Has anyone ever started working on a contract using "heads of agreement" and then sorted the actual contract out later ?
Looks like I will be starting my first contract in a couple of weeks but as yet no contract has been finalised. We are still at the stage of agreeing an outline agreement and there are multiple parties involved which is dragging it out.
Once the outline is in place it's going to take time to get company set up, enlist an accountant, get a full contract drawn up and IR35 reviewed/tweaked. It has been suggested that we could call the outline agreement "Heads of Agreement", then starting work and sorting out the real contract ASAP after that.
I know "Heads of Contract" is not legally binding, and therefore my gut feeling is that it could be a whole bunch of trouble, but I wondered if anyone has ever done it/considered it, and if there are any ways of minimising the risk/hassle - or would you just not touch it with a bargepole.

[northernladuk]

Well you can set company up and get accountant before you start the contract. You can also get PI/PL from QDOS so you can get the contract reviewed as quickly as possible as well.

Personally I wouldn't start until I had it signed as they can have you over a barrel and you chance to negotiate has gone. They put a contract in front of you that is so far inside IR35 and it is too late to negotiate. IR35 is just one reason you might need to negotiate obviously

Question is can you afford to say no to this? I am sure they won't bin you off this far down the chain but you might get a contract you are not happy with or at worst not get paid. It is your first contract so just do the role and smile whatever they do with contract? I don't know.

[Wanderer]

Don't bumble along waiting for them to propose their own terms on you, get in there all business like and get things rolling! Join the PCG and get one of their standard contracts, mash it up how you like and present it to the client, here you go these are my standard terms and conditions.

They might reject it and present their own one but at very least it will spur them into action and make you look a bit more like a business man than a wage slave. If they fail to produce their own contract and you start work then at least you have some protection and if it comes to a dispute then you say those were the terms you were prepared to work under and they have tacitly accepted them.

Setting up the company, insurance etc is pretty easy. Speak to one of the accountants who post/advertise here or get the PCG to do you a package which includes what you need....

[BrilloPad]

I have done heads of agreement - but only in divorce. My ex's solicitor "resiled" - a legal turn meaning to spring back (knife me in the back more like). 6 months later we ended up in court to reach agreement - oddly listed as a commital hearing. The judge asked me why I was not smiling when agreement was reached....

[SarahL2012]

Just done something similar

Don't bumble along waiting for them to propose their own terms on you, get in there all business like and get things rolling! Join the PCG and get one of their standard contracts, mash it up how you like and present it to the client, here you go these are my standard terms and conditions.....

That's just what I've done for a 'we need you in Monday' contract. 8 weeks later they are still dithering around, but its my contract that is on the table and after this amount of time I'm pretty confident its the one that will stand up in court!

[moggy]

That's just what I've done for a 'we need you in Monday' contract. 8 weeks later they are still dithering around, but its my contract that is on the table and after this amount of time I'm pretty confident its the one that will stand up in court!

agreed - i think there is a basic law speed contract with a term where by turning up on day one of the contract is tantamount to excepting the terms and conditions. so you could if you feel you can't kick them into shape, issue the contract and let them dither on it.

[psychocandy]

Plenty of clients insist they need you to start TOMORROW and the agents will be the same (sometimes more so because they want they're money).

But you'll find out they then take ages to sort the contract out. If they were that bothered then they'd make more of an effort surely?

Nope. They'd rather short cut things....

[northernladuk]

Plenty of clients insist they need you to start TOMORROW and the agents will be the same (sometimes more so because they want they're money).

But you'll find out they then take ages to sort the contract out. If they were that bothered then they'd make more of an effort surely?

Nope. They'd rather short cut things....

This is exactly what this thread is about. Why are you repeating what everyone is asking about?

[cojak]

That's just what I've done for a 'we need you in Monday' contract. 8 weeks later they are still dithering around, but its my contract that is on the table and after this amount of time I'm pretty confident its the one that will stand up in court!

This is what I did with my current contract. I sent the PCG direct contract to the client and started in the basis of that. We worked on the contract (which I only agreed to when it had the same wording as the original contract) later.

[private123]

Thanks everyone for your comments. It sounds like at the very least, if I start on they day they want, beforehand I should send them a basic QDOS or PCG contract, presumably with correct rates etc put in it, and then it should be OK to fine tune/agree it ASAP after that. I suppose the only risk is that if they want to change it too much, and they haven't signed anything, that there is a small risk of not getting paid if we don't come to full agreement/signing.
But as one of the posters has said, if I understand correctly, it is tantamount to them accepting that contract if they let me continue to work having seen it.