First time contractor Advice - Resign before receiving contract

**ShandyDrinker** · 26 August 2014, 15:40

Originally posted by Daplayer321 View Post

Hi,
Just wanting advice from the experienced contractors here, what would you do in this case? Would you hand in your notice before you get the actual contract?

The perennial problem when moving from perm to contract. Only do it if you know what you are getting yourself into. Do you have money to survive if the offer is withdrawn, for example? Are you confident enough in your skill-set to be able to secure other work if it falls through?

I did this very thing when I started contracting but made sure had built up a war chest before starting. I was very fortunate to have been recommended for a contract direct so didn't have any agency shenanigans to worry about.

It all depends on your attitude to risk.

Good luck.

**northernladuk** · 26 August 2014, 15:40

We have had a number of posters on here, some pretty recently, that handed in their notice even with a signed contract and it still evaporated before they could start leaving the poster in notice period with nothing to go to. Even with a signed contract nothing is assured. How long is your notice period? 4 weeks? Expecting contracts to wait for permies notice period is always fraught with risk.

Personally there isn't a chance in hell I would hand my notice in before signing a contract, but even if I did I would be aware that just because I have a contract it doesn't mean anything is cast in stone. At least by getting a contract signed you know the client wants you in and you are not at the mercy of a lying agent. I seem to think in one of the previous threads the poster found out the role hadn't even been signed off by the client, let alone getting to signed contract stage so the agent had effectively screwed him over.

**TheFaQQer** · 26 August 2014, 15:57

If you have a signed contract, and it falls through, and you are a ~~PCG~~ AIPSE member (and have been for long enough) then you can claim on their insurance policy.

**Batcher** · 26 August 2014, 16:08

How confident are you in your ability?

I've told umpteen permies over the years thinking about contracting that they have to resign so that they are available immediately for contract. Very few of them do and are still complaining about the permie life

So, in a word: JUMP

**quackhandle** · 27 August 2014, 09:13

Before my contracting days I left a permie job with nothing lined up as I was close to doing something I would regret so it was best I left.

Easier with no kids/wife/mortgage, etc but to the OP, what's the worst that can happen? Contract pulled so no income for six months; can you survive that? Mentally as well as financially? How about twelve months? Look at some threads on here it can and does happen.

Sometimes you have to grab life by the balls and go for it. Or you can play it safe.

Good luck.

qh

**TheFaQQer** · 27 August 2014, 09:36

Originally posted by quackhandle View Post

Before my contracting days I left a permie job with nothing lined up as I was close to doing something I would regret so it was best I left.

Easier with no kids/wife/mortgage, etc but to the OP, what's the worst that can happen? Contract pulled so no income for six months; can you survive that? Mentally as well as financially? How about twelve months? Look at some threads on here it can and does happen.

Sometimes you have to grab life by the balls and go for it. Or you can play it safe.

Good luck.

qh

This. If you can't cope with the idea of not earning for a few months, then this isn't the right thing for you. Of course, it's easier to be benched once you've had a few contracts and have saved, but you have to be prepared that even if you have that contract, they could get rid of you on (or before) the first day, or at any stage of the contract.

It's a mindset change, and you have to be prepared to cope.

**Daplayer321** · 27 August 2014, 11:32

Thanks for the feedback guys.

The agent who contacted me was the direct HR representative of the company so no third party agents involved.

Unfortunately i dont have a war chest and am hoping of saving up a decent amount after a few months of contracting.

Yes my notice period is 4 weeks and the company im looking to get a contract is reputable and based in Canary Wharf and yes i am open to the risk if contract falls through and have back up plan (move back with parents and can get a temporary job sorted until something else comes up).

The safeguard i know is that the Program manager (who interviewed me) told me there's at least 18 months of work and she is recruiting for a variety of roles, i understand there is the risk that the role could be pulled but a risk im willing to take.

So many things i want to do in life financially but a Perm salary doesnt give me that flexibility.

**quackhandle** · 27 August 2014, 11:35

Fair one.

You might want to make sure you have a line of easy accessible credit just in case if/when things go tits up.

qh

**stek** · 27 August 2014, 11:45

Originally posted by Daplayer321 View Post

The safeguard i know is that the Program manager (who interviewed me) told me there's at least 18 months of work and she is recruiting for a variety of roles, i understand there is the risk that the role could be pulled but a risk im willing to take.

So many things i want to do in life financially but a Perm salary doesnt give me that flexibility.

Lol I wish I had a quid for every year of work that's supposedly lined up, keep being told there's two years of work lined up at a Gov agency I worked at, don't take a long term contract, it's happening soon, two years later no sign and as far as I know it's all canned. Don't believe anything other than your own instincts.

Contracting for money is not the reason to go contracting, the money is more or less the same if you take it in the prescribed most tax efficient way, just you stash more away in the company for rainy days, of which there will be many.

First time contractor Advice - Resign before receiving contract