Awaiting contract extension - query !

[pauldee]

The way to make these decisions is to assess the risk. What is the risk you won't get paid and what is the alternative.

Assuming there is a 20% chance of not being paid and assuming that you don't have an alternative contract and for the sake of argument earning 500 a day.

Continuing the project for a week : 0.8 * 2500 = 2000
Staying at home : 1.0 * 0 = 0

Therefore it makes sense to continue even if the contract isn't signed because over many projects even though sometimes you won't be paid, you will still earn more than simply twiddling your thumbs at home waiting for the renewal documentation.

I doubt many people would be twiddling their thumbs. Rather looking for other contracts.

[BlasterBates]

I doubt many people would be twiddling their thumbs. Rather looking for other contracts.

...and the chance of finding and starting a contract before the week is out is what ?

Would the OP not be able to look for a contract whilst also working ?

Just feed that into the equation i.e. probability of finding a contract and the expected rate.

This is the problem with many contractors is that they're not trained in business or finance and therefore often follow their instincts and make bad decisions.

You are not necessarily wrong, that's what the OP has to assess.

[northernladuk]

The way to make these decisions is to assess the risk. What is the risk you won't get paid and what is the alternative.

Assuming there is a 20% chance of not being paid and assuming that you don't have an alternative contract and for the sake of argument earning 500 a day.

Continuing the project for a week : 0.8 * 2500 = 2000
Staying at home : 1.0 * 0 = 0

Therefore it makes sense to continue even if the contract isn't signed because over many projects even though sometimes you won't be paid, you will still earn more than simply twiddling your thumbs at home waiting for the renewal documentation.

There is one other situation we had on a here a long time ago but I can't find it. The client manager made a call, the business didn't like it as it broke their rules. Contractor got walked and manager got disciplined. Doing it by the book would have kept the gig. If I remember rightly the poster was asking about suing the manager or something? Granted a very small risk as I've only seen it once but just something to bear in mind. Make sure if the client manager says come in that he's got the authority to do it properly.

[BlasterBates]

There is one other situation we had on a here a long time ago but I can't find it. The client manager made a call, the business didn't like it as it broke their rules. Contractor got walked and manager got disciplined. Doing it by the book would have kept the gig. If I remember rightly the poster was asking about suing the manager or something? Granted a very small risk as I've only seen it once but just something to bear in mind. Make sure if the client manager says come in that he's got the authority to do it properly.

You have to throw that into the probabilities.

Basically if your agent tells you to go in, you have a contract to go in, i.e. a verbal contract is a contract, if he tells you not to because it hasn't been decided, then you don't.
Without the paperwork but verbal assurances, the probability of not being paid is very low.

I always accept verbal assurances. If my agent would tell me not to go in, I wouldn't go in.

[SueEllen]

...and the chance of finding and starting a contract before the week is out is what ?

Would the OP not be able to look for a contract whilst also working ?

Just feed that into the equation i.e. probability of finding a contract and the expected rate.

This is the problem with many contractors is that they're not trained in business or finance and therefore often follow their instincts and make bad decisions.

You are not necessarily wrong, that's what the OP has to assess.

Depends on the individuals skillset and location.

If I left my contract now I would find another one quickly at the moment.

[BlasterBates]

Depends on the individuals skillset and location.

If I left my contract now I would find another one quickly at the moment.

That obviously puts you in a position where you can demand the paperwork. Don't forget verbal agreements are legally binding, and not having the paperwork doesn't necessarily entitle you to break the contract, if you have been informed of the delay and the client and agency are putting right.

[psychocandy]

FTFY

But in the clients eyes, it was a case of, well miss X is not kicking up a fuss about the contract not being sorted but you are being awkward.

Miss x also regularly worked weekends for free..... :-(

[northernladuk]

But in the clients eyes, it was a case of, well miss X is not kicking up a fuss about the contract not being sorted but you are being awkward.

Miss x also regularly worked weekends for free..... :-(

I think MP was saying you don't need anyone else to make you look bad. You've pretty much nailed it on your own.

[SueEllen]

But in the clients eyes, it was a case of, well miss X is not kicking up a fuss about the contract not being sorted but you are being awkward.

Miss x also regularly worked weekends for free..... :-(

Did Miss X have the same contract as you with the same agency.?

I have been at more than one client where due to people's negotiating skills and when they started everyone was on a slightly different contract with the same agency.

So saying you can't do x because of insurance is valid as your contract won't be the same as Miss X.