Terminating Contract Early

[Willapp]

I think one issue with clients who perhaps expect contractors to take extensions when offered, is that they might know from day #1 that a project is going to take ~18 months, but will still offer an initial contract of maybe 3 or 6 months.

Even if it's obvious to the contractor that there is more than 6 months work, in reality there is no obligation for them to take an extension, but I can see many cases where the client would be unhappy with someone who spent 6 months building 1/3 of the finished product only to walk away to a better paid/more convenient/whatever contract elsewhere. The solution to this is for client's to offer the full length contract up-front so that a contractor can decide if they're in it for the long haul to start with.

Yes circumstances can change along the way, but that's what notice periods are for and at least it would save the awkwardness surrounding extensions if the client is more keen than the contractor.

As for the many and varied reasons for terminating early, my personal thoughts are that it should be avoided except for fairly serious changes in circumstances - not just because someone's prepared to throw more money at you. I'd feel pretty stupid leaving a secure contract for a higher paid one, only for the new contract to get canned a few days in. I think I would only contemplate this if I'd been forced to take a much lower paid contract than usual due to lack of options - as long as I'm happy with my current rate I'd see no real reason to jump, too often the grass isn't really greener.

[psychocandy]

I think one issue with clients who perhaps expect contractors to take extensions when offered, is that they might know from day #1 that a project is going to take ~18 months, but will still offer an initial contract of maybe 3 or 6 months.

Even if it's obvious to the contractor that there is more than 6 months work, in reality there is no obligation for them to take an extension, but I can see many cases where the client would be unhappy with someone who spent 6 months building 1/3 of the finished product only to walk away to a better paid/more convenient/whatever contract elsewhere. The solution to this is for client's to offer the full length contract up-front so that a contractor can decide if they're in it for the long haul to start with.

Yes circumstances can change along the way, but that's what notice periods are for and at least it would save the awkwardness surrounding extensions if the client is more keen than the contractor.

As for the many and varied reasons for terminating early, my personal thoughts are that it should be avoided except for fairly serious changes in circumstances - not just because someone's prepared to throw more money at you. I'd feel pretty stupid leaving a secure contract for a higher paid one, only for the new contract to get canned a few days in. I think I would only contemplate this if I'd been forced to take a much lower paid contract than usual due to lack of options - as long as I'm happy with my current rate I'd see no real reason to jump, too often the grass isn't really greener.

If thats the case then client needs to offer contract for the entire length and have no notice period. And not moan when they've got to pay a premium for tying in contractor.

I did have a client once who EVERY TIME would wait until the last day (and after) to process extensions. Did my chunk in. I told them, no offence but if someone else comes up with something then I'd be tempted.

BUT they honestly thought I had to give a months notice to NOT renew. i.e. I had to give a month at any point and end of contract did not matter. I did try to explain but they were adamant. Probably why they didnt give a toss about rushing to get renewal done because in their head I couldn't leave anyway. Bit bizarre - got to give notice to not accept new contract.

It never came to a head (they gave me one week notice that budget was gone and they couldnt renew) but it would have been interesting to see their faces lol.

[GillsMan]

You must be nuts. So you got a warm fuzzy nice feeling in your nuts for those 6 weeks then they gave you the boot?

No offence but thats borderline being crazy.

I agree that that particular example is extreme, and I admitted that I didn't expect everyone to do the same. It's an example where anyone would have been justified in walking. But no, I didn't just do it for a nice warm fuzzy feeling, I did it because it was the right thing to do. I was operating as a limited company, and my business had committed to doing XYZ work. If you want to also be available for other opportunities while in a contract then do what I did and take the plunge and hire extra staff so you can take on multiple concurrent opportunities. Otherwise, accept that as a business you've committed to delivering for your client.

Who are you in it for then? If thats the case then why not work for a charity pro bono?

Sorry but I'm in it for my family. No-one else.

Obviously I'm in it for me, but not exclusively. I'm also here to improve the client's situation. It's a pretty solid mantra for any true consultant: by the end of your time with a client you should have improved the client's working, either by maximising their profits, or by changing their culture, or software, or whatever it is you do.

[RoastedSlopes]

The first rule of business is to make a profit.

You provide a service, the client pays for this service and when it doesn't need yourCo services it terminates.

Why loyalty to client? Professional courtesy yes, not loyalty, that's for Permies

Ideal opportunity to supply a substitute.

[gigahoe]

The first rule of business is to make a profit.

You provide a service, the client pays for this service and when it doesn't need yourCo services it terminates.

Why loyalty to client? Professional courtesy yes, not loyalty, that's for Permies

Ideal opportunity to supply a substitute.

How often does the sub thing work out? And how do you even go about getting one?

From reading the forum the examples I've seen seem to suggest whenever one is offered the client tends to ignore.

[SpontaneousOrder]

Terminating is one thing, but deliberate and deceptive breach of contract is another. In fact it's fraud.

You (not necessarily the OP - but those suggesting going off sick etc) should understand that you can't possibly talk about anything from any kind of morally virtuous perspective if you advocate doing the exact opposite of a morally virtuous act.

Fraud is no different to theft.
At the very least, going 'off sick' is an attempt to blur the lines between breach (and it's agreed consequences) and fraud. In practise it's closer to fraud.

I hope never to hear you ranting from some moral high ground should you ever be the victim of fraud or theft - or violence - yourselves.

[SussexSeagull]

I agree that going off sick is something of a cowardly way out (unless you are sick, obviously) but talk of fraud is going somewhat over the top.

I have only served notice once and was more than happy to serve the notice period (ended up doing about half of it by mutual consent) when there was a very real threat of me punching someone but I would have thought in most of my contracts I would have been released in the early stages of a project.

That said I tend to stop looking once I have started a new contract so unlikely to be an issue for me.

[SpontaneousOrder]

I agree that going off sick is something of a cowardly way out (unless you are sick, obviously) but talk of fraud is going somewhat over the top.

So you don't think that lying to evade lawfully enforceable contractual obligations is fraudulent?

Would it be fraudulent for your bank to lie to you about changes in base rates in order to keep charging you higher interests charges on your tracker mortgage account?

[SueEllen]

How often does the sub thing work out? And how do you even go about getting one?

From reading the forum the examples I've seen seem to suggest whenever one is offered the client tends to ignore.

If the client refuses to accept a sub who has the same skills as you then it's a breach of contract. This means subject to negotiations i.e. you tell them it's a material breach you can terminate it.

[RoastedSlopes]

If the client refuses to accept a sub who has the same skills as you then it's a breach of contract. This means subject to negotiations i.e. you tell them it's a material breach you can terminate it.

WSS