Change in contract deliverable, does anything need to change?

[WLB2018]

Afternoon folks,

Just a query really, one that I hope you can advise on:

6 months into a 12 month gig and the client is ramping up another project stream. The client has indicated that they would like me to move across to the new project team and assist with the delivery of that projects deliverable's; which of course are totally different to those I am currently working on (not even sure that is relevant). The reason being is a big part of the new project stream has elements I have experience in/with. No conversation with the agent yet mind.

If we assume that both will run for 6 months and both have the option to extend (but not going beyond the 24 month rule), both being outside IR35 and both being based in the same location (mentioning it for clarity more than anything else).

Is there any precedent for this? Should there be a new contract or new confirmation of arrangements/SOW? Is there an option to change day rate (I am happy with the rate, just wanted to cover off the option).

My gut feel is it doesn't matter and there are no real implications, but given this is my first gig and most of the veterans on here may have come across this scenario.

Thanks in advance.

WLB

[northernladuk]

My gut feel is it doesn't matter and there are no real implications, but given this is my first gig and most of the veterans on here may have come across this scenario.

Then you couldn't be more wrong. One of the main pillars for IR35 is Direction and Control. You cannot be controlled by the client. So you come in and do the work as described in your SOW and leave. Permies don't do that. They are moved about and given work that suits the company.

By moving in to a different area mid contract you look like you are under the direction and control of the client which is bad.

It is very easy to mitigate with a new contract which is between you and the agency so doesn't really affect the client. Could even be a bonus for you because the old one is being terminated before it completed. You could possibly get a new SoW agreed but IMO that's just too flimsy. Terminate the contract for the old piece of work as it isn't being done now and get a new contract for the new work.

Why do you think it's worth a change in your rate? Are you providing more hours? Will you performance jump? Will the client be better off? I very much doubt it. You'll be paid the market rate for the skills you are demonstrating, albeit on a different project. You could try squeezing the agency margin but they will know full well you won't turn it down so will play hardball with you.

[northernladuk]

All that said. If the client just see's you as a body they can swap about as they please no amount of paperwork will disguise the working practices so don't be doing this too often and make sure the client understands the situation.

[gnarledcontractor]

I'm sure that one of the seasoned contributors to this forum will be along shortly.

Being a member of QDOS - their contract review and working practices questionnaire cover this extensively.

If its an entirely new work stream and a different package of work then it will need a new contract. The idea is to have a start and end date for each deliverable which avoids the rolling ongoing contract situation which may point to you being part and parcel or demonstrating employee like behaviour.

As regards day rate, I usually have an idea of what market rate for different skills are, I would assess the skills needed and the difficulty of the new workstream and negotiate accordingly.

[WLB2018]

Then you couldn't be more wrong. One of the main pillars for IR35 is Direction and Control. You cannot be controlled by the client. So you come in and do the work as described in your SOW and leave. Permies don't do that. They are moved about and given work that suits the company.

By moving in to a different area mid contract you look like you are under the direction and control of the client which is bad.

It is very easy to mitigate with a new contract which is between you and the agency so doesn't really affect the client. Could even be a bonus for you because the old one is being terminated before it completed. You could possibly get a new SoW agreed but IMO that's just too flimsy. Terminate the contract for the old piece of work as it isn't being done now and get a new contract for the new work.

Point taken

Why do you think it's worth a change in your rate? Are you providing more hours? Will you performance jump? Will the client be better off? I very much doubt it. You'll be paid the market rate for the skills you are demonstrating, albeit on a different project. You could try squeezing the agency margin but they will know full well you won't turn it down so will play hardball with you.

The new project involves some very niche skills that I have and if they were to go out to market they would have to pay more. Which is why I mentioned the rate increase. I am not greedy, I was just curious about the etiquette.

Thanks

WLB

[WLB2018]

I'm sure that one of the seasoned contributors to this forum will be along shortly.

Being a member of QDOS - their contract review and working practices questionnaire cover this extensively.

If its an entirely new work stream and a different package of work then it will need a new contract. The idea is to have a start and end date for each deliverable which avoids the rolling ongoing contract situation which may point to you being part and parcel or demonstrating employee like behaviour.

As regards day rate, I usually have an idea of what market rate for different skills are, I would assess the skills needed and the difficulty of the new workstream and negotiate accordingly.

Thanks for that, I used QDOS for contract review before, perhaps I should dig deeper into their services

WLB

[Lance]

The old saying of 'there's no business like repeat business' is the one here.
If you client wants you to do more work, that is better than you having to find a new client.

they key is that you have won some new business, NOT that they have just moved you around.
Tell the agency to update the schedule that comes with the contract (that's the one with the end date, the rate and the role). Have the role changed to list the deliverables, or the new project.

Personally I do this at renewal time rather than mid term but that's simply because it's easier to get the agent to change it at that time. Any work I do on a new project prior to that renewal is merely 'scoping' to decide if I want to do it. It would be best to have it updated immediately though.