What do you say...

[northernladuk]

I don't recall ever being asked this for a contract - it's more of a question for a permie role surely?

If the question ever came up for a contract, I think I'd be more concerned that the interviewer didn't really understand the type of resource he was attempting to engage.

Yep. I've had it a few times and the rest of the interview was clearly permie'esque as well but so be it. I'll give them what they want whatever they ask to get the role. Doesn't really bother me how they interview TBH as I'll be ready for both. That said I don't have to do coding type reviews, it's just chat which ever approach they take.

I tend to waffle about the project sounding interesting and a good opportunity for me to use xyz skills.

Exactly this. It might sound a rubbish question to us but I do think it's important to give them what they want which is someone who is interested and invested in what they do (even if we aren't). I personally don't think I've got skills and you are gonna pay me for them gives them what they want to hear for reasons Dark Black says. They are interviewing wrong so giving a contractor answer to a permie question is the best way even though it's absolutely correct.

[d000hg]

If you are a good contractor, you should have your choice of projects. "I need the money" suggests you are after anything you can get, rather than that you have chosen them as your preferred client.
I wouldn't want to work somewhere if the work seemed boring, the environment seemed unpleasant, or the logistics were a PITA.

Taking such a role would be my last option and I would be keeping half an eye out for something better. If the project you are joining is long-running, they are also probably having half an eye on future extensions.