Should I take a new contract at a substantially lower rate for experience?

[ziggystardust]

I'm fairly new to contracting (just over 2 years) as a PMO Analyst and in that time have been out of work for 7 months of those. This has been mainly due to my inexperience and indecisiveness. Having finished a 9 month contract in July and presented with other contracting opportunities immediately after over the next few months or so but turned them down, due to them being further away than I would want to travel, or lesser rate (15% less) in the hope that something just as good or better, rate and location wise would turn up. Then, in the run up to Christmas and after, I couldn't get any work and consequently was on the shelf until March.

The reason for the above rambling (to get to the point) is that I have went into a 6 month contract in my field and finished a month ago. I decided not to renew as I would like to change direction and move into a Project Manager role, firstly because I have being doing this type of work long enough to realise that I do not find PMO Analyst work very interesting compared to the idea of project management, and secondly, there is the potential to earn a much higher rate as a Project Manager (at least 25 - 30%). It is now coming up to a month since my contract ended and I am keen not to make the same mistake as previously, and find something quickly. However the dilemma I have is that there is potential for a 6 month role as an Assistant Project Manager with a well known bank, which is a junior role but would be a spring board to getting into a full blown role in the future. The problem is that it is 55 miles away from me and, taking into account location, accommodation costs and travel (I would probably stay over at least once a week) this would leave me with about 40% less than what I was taking in with my previous contract. At the same time, I am worried that if I wait a bit longer, I might experience a lull again and, with a lot less savings to live on than previously there's a danger that I could be out of work again for another 3 or 4 months.

My question is, what would you guys do? Take the role that offered the experience you wanted at less money or take on another role similar to what you had been doing at a higher rate, less interesting, but at the risk of not getting anything for another month or more. (I have not applied for the Project Manager role yet)

[JRCT]

I made a bit of a schoolboy error on a day rate, last year. I had 1 contract at my usual rate. That ended just as a new contract came up in the same department (slightly different remit). I was basically asked if I wanted it and I said yes, assuming it was on the same terms as the current.

It turned out the new one was paying £15 per day less than the old one.

Now, it was only £15 a day and it was my stupid fault for not checking, but I spent the whole 6 months of that contract kicking myself for that error. It cost me just short of £2k.

I would have to be on the breadline to drop my rate now. I'd rather go play golf than take another unnecessary drop.

[northernladuk]

You will not get a contracting PM role with no solid experience. PMO and PM are totally different things. Just working in a PM environment doesn't mean you can project manage. At the very very least you will need some PM certification like Prince 2 to even get past the agent. After that you need years of experience on your CV for you to even get a sniff. Even if it is an assistant PM role there will be experienced PM's that will be willing to take it. Contracting does not (generally) allow you career moves as clients just won't take you on unless you have the experience. Saying you 'can do that' is not enough. They want a specialist that can hit the ground running with the piece of work they have, not someone they have to train.

I would be very doubtful you would get the role you are talking about and like any contract you have nothing until you are sitting at the desk on the first day so don't play your life around what you could have. If you start applying it could be yet another year dilly dallying around in no mans land until someone gives you a break. I really don't think this route will work at all and you are a hiding to no where. The only thing in my mind to do is go perm and gain the experience for a year or two and then come back to contracting as an experienced PM. By the sounds of it you are going to get paid more in a PM job that you are contracting looking at your history.

That said... go for the contract and see. If you get it then you can make the decision. If you are going to do it you have to stick your neck out and get on with it. Moaning about it being 55 miles away isn't a good start. I would kill for a gig 55 miles away by the way. It's easily commutable so don't know what you are moaning about. If you can't be arsed then you have your answer.

If I was in your boat I would go perm, get some money rolling in and get some good solid experience and then come back with a completely different (and more valuable) skill set in a couple of years. You could PM for the next 20 odd years so well worth it.

[DiscoStu]

Your current rate is precisely £0 so it's up to you to decide how long you can afford to stay on your current rate in the hope that a role you have little experience of is offered to you. I wouldn't hold your breath.

[TheFaQQer]

It would be a brave or naive client that took on a novice project manager with no experience on a contract basis (although at least they could get rid of you quickly if they needed to!).

If you want to make the move into project management, then you need to have a track record of being able to deliver, or at least a track record of project managing the kinds of projects that the client is looking for. Taking the Assistant PM role might be the best way into this for you. Alternatively, take a permie role that gets you skilled up and then make the move.

[sal]

So long story short, you had 2 contracts as PMO Analyst and 7 months on the bench in the past 2 years and now you are looking for someone to offer you a PM contract, just because you feel you are ready for the big bucks.... Do you have any PM experience as a perm before that? Because the last 2 years of your CV are not instilling confidence at all.

Newsflash - The clients are paying premium for contractors for a reason and that reason is not the privilege of training and advancing their careers.

Like other already suggested - go perm or low paid tulip contract that no one else wants if you want to skill up. And any rate is better than the £0/day you get on the bench.

[TykeMerc]

My thinking is that this looks like you've been handed an opportunity to make a change that you want on a plate and you're just not happy with the colour of the plate.

As the others have pointed out, changing role as a contractor isn't the easiest thing to achieve, clients look to contract in an experienced specialist so a junior role to gain that experience is a must and not that common if truth be told.

As DiscoStu pointed out your day rate today is 0 so taking a role that after expenses gets more than that is a plus, with it carrying important experience that you need it's a big plus.

If you're worried about the day rate and the future, then I think you will find most of us don't put our rates on our CV's and when asked by agents we discuss the rates we want, not what we accepted in the past.

[psychocandy]

The $64K question all the time....

Experience or money, location or money etc.

Currently in a bit of a crap gig myself with ok rate, local, but a bit low tech (OK its windoze). If I stay here much longer then Im going to struggle to get back into my main thing (unix).

But of course, not renewing a local gig with ok rate is a tough decision to go on the bench and hope something comes up that you want. Meant to it last time but looked at warchest and thought 'one more extension'.

Can guarantee come xmas I'll be thinking 'oh could do with a bit more in warchest'.

Always a difficult decision things like this.

[d000hg]

I made a bit of a schoolboy error on a day rate, last year. I had 1 contract at my usual rate. That ended just as a new contract came up in the same department (slightly different remit). I was basically asked if I wanted it and I said yes, assuming it was on the same terms as the current.

It turned out the new one was paying £15 per day less than the old one.

Now, it was only £15 a day and it was my stupid fault for not checking, but I spent the whole 6 months of that contract kicking myself for that error. It cost me just short of £2k.

Huh? When they showed you the contract why didn't you just kick up a fuss? For that little surely they would've played ball?

[ziggystardust]

I appreciate everyone's advice, all slightly different but good and has made one thing very clear. Basically I have two choices: I either 1)need to bite the bullet and take the first role that is vaguely related to what I have done before, even if it is at a substantially lower rate (above £0 per day) and then continue to chug along doing what I have been skilled in as a PMO Analyst in the security that I can get regular decent paid contracts. Or 2) get a permanent job for a year to upskill (which presently I could just about do but financially I would be struggling).

My concern is that with option 1, I could take on a very low paid, perhaps more junior skilled contract compared to my skills and experience for 6 months and then shortly after something much better comes along. I will be committed to stay? Will taking a contract that might be more junior and not specifically related to what I have done for the sake of keeping the money coming in look bad on my CV when viewed by clients/agencies?