First Contract Offer Advice

[northernladuk]

OP mentions he has a daily rate, so doubt it's an FTC

Good spot and yes you could be right. Wouldn't be hard for the OP to find out.

[JRCT]

Hello!

I've been offered a 12 month contract at a daily rate that equates (after I've put aside for pension and holidays) to just having 1 month left savings after the contract ends to find another contract. Initially I calculated that I need to earn twice what I used to be paid perm. Is that roughly how you work it out?

Thanks

I think, in answer to your question, everyone will work it out differently depending on circumstances. Some will be in a circumstance where there is no (or little) working out.

If your choices are 1 month's worth of savings at the end of the contract, or no contract and no savings, then you're going to take it, more likely.

I've been contracting for 3-4 years. I was made redundant from my last permie role, which gave me a bit of a financial buffer, but not massive and I was lucky in the respect that the first day I registered with an agency a role was sat there within my skillset that needed filling yesterday. Looking back the rate was pretty poor (in fact, i'm now on exactly double the day rate of that contract), but, I wasn't working, I had money in the bank and I had no experience of contracting at the time so it was all pointing towards me taking it.

Turned out it was a terrible contract. The permie manager wanted to manage by piece-meal every aspect of what I was brought in to do and so I left after 2 months. But, it was a good learning curve for me and paid the bills for those two months, and a fair bit more to the savings which allowed me to take 4 months off before taking a second contract on a better day rate.

I wouldnt touch an FTC with a barge pole, for reasons explained previously, unless my life - or wife - depended on it (pretty much the same thing).

[psychocandy]

I think, in answer to your question, everyone will work it out differently depending on circumstances. Some will be in a circumstance where there is no (or little) working out.

If your choices are 1 month's worth of savings at the end of the contract, or no contract and no savings, then you're going to take it, more likely.

I've been contracting for 3-4 years. I was made redundant from my last permie role, which gave me a bit of a financial buffer, but not massive and I was lucky in the respect that the first day I registered with an agency a role was sat there within my skillset that needed filling yesterday. Looking back the rate was pretty poor (in fact, i'm now on exactly double the day rate of that contract), but, I wasn't working, I had money in the bank and I had no experience of contracting at the time so it was all pointing towards me taking it.

Turned out it was a terrible contract. The permie manager wanted to manage by piece-meal every aspect of what I was brought in to do and so I left after 2 months. But, it was a good learning curve for me and paid the bills for those two months, and a fair bit more to the savings which allowed me to take 4 months off before taking a second contract on a better day rate.

I wouldnt touch an FTC with a barge pole, for reasons explained previously, unless my life - or wife - depended on it (pretty much the same thing).

This is true. But depends where the OP is coming from. Ditching a perm role for this = bad idea IMHO.

Never ceases to amaze me how they get people for FTC. But, there is always someone who will do it in all cases it will seem.

[digitalnomad]

Thanks Psychocandy,

Well being an optimist, as I've never contracted before I thought it would be good not to be too fussy at first and get a name for myself with the recruiters. As I'm their preferred candidate, I'm goig to ask them if they can make a financial effort :-)

So rate is crap then? Or are you're outgoings massive?

Not so good. Generally, contracts I do tend to net me double what I'd get as perm. Most months - unless its holidays etc.

So overall, taking into account the dear wife spending it, I'd look to, as a minimum, put away 1 month worth of warchest for every 3 months worked.

Of course, you do know even its 12 months they can probably server notice half way through or less if it suits them....

[digitalnomad]

What's FTC

Hello Northenladuk,

Thanks for that, excuse my ignorance but what's and FTC?

First off... Understand what type of contract it is. It sound very much like an FTC to me which isn't a good place to be. You are effectively an employee with all the benefits. Read the contract and understand it first.

[digitalnomad]

BTW it's paid £285/day excluding expenses (i.e. 2/3 hotel nights and mileage) for a Digital Project Manager. Does it sound crap to you?

Ah yes could well be if its that badly paid. Worst of both worlds :-)

[digitalnomad]

Rate

Yes the rate is not great £285/day (they don't pay 2/3 hotel nights and mileage of course)

So rate is crap then? Or are you're outgoings massive?

Not so good. Generally, contracts I do tend to net me double what I'd get as perm. Most months - unless its holidays etc.

So overall, taking into account the dear wife spending it, I'd look to, as a minimum, put away 1 month worth of warchest for every 3 months worked.

Of course, you do know even its 12 months they can probably server notice half way through or less if it suits them....

[psychocandy]

BTW it's paid £285/day excluding expenses (i.e. 2/3 hotel nights and mileage) for a Digital Project Manager. Does it sound crap to you?

Not quite sure what a digital project manager is to be honest :-)

But £285 whilst not very low is probably a little low especially if you're shelling out for accomodation.

But depends like others said. If you've got nothing else then its better than bugger all.

[psychocandy]

Thanks Psychocandy,

Well being an optimist, as I've never contracted before I thought it would be good not to be too fussy at first and get a name for myself with the recruiters. As I'm their preferred candidate, I'm goig to ask them if they can make a financial effort :-)

Hmm. The recruiters will only care if you make them money to be honest. They won't remember if you're the nicest or most reliable guy in the world unless it directly means they can make money out of you.

Preferred candidate. Don't want to burst your bubble but they may have 4/5 people going for interview and they've all been told this. Thats the sort of bullsh*t agents do.

So is it secured yet or still at interview stage?

[northernladuk]

BTW it's paid £285/day excluding expenses (i.e. 2/3 hotel nights and mileage) for a Digital Project Manager. Does it sound crap to you?

It doesn't matter what it sounds like to us. It's all down to you and what you want. First off lets be honest, a rate like that isn't exactly going to put you on the breadline and also remember it's just for a short period of time, not enduring like a permie gig. Sometimes you have to take a lesser contract to either gain skills or get yourself of the bench to stop the coffers running dry.

Secondly it depends on what work is required. The job title could cover a whole raft if responsibilities so can't really say if it's good or not. Also depends on where in the country it is. To do a fair comparison you'd have to do a couple of things.
Find out where in the country
What are the exact responsibilities of the role
Do some research to find comparisons.

I think what you are asking is 'Is this market rate' by the way.

So, think about your situation, are you getting lots of roles, can you afford to be picky, is it something you want to do, are there other benefits like skilling up etc and make a decision.

If you really want to do a comparison try itjobswatch.co.uk. It scrapes the jobs boards and gives you some historical data but remember you can't always trust what the job roles are so take it with a pinch of salt. Might help though.

Don't forget to get the contract reviewed for IR35 and the like before you accept it.

EDIT : Just checked my role title on there and it's not too bad, seen gigs on more and also less so doesn't seem a bad indicator.