• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

ok to leave after 3 month contract?

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    ok to leave after 3 month contract?

    My current client offered an initial 3-month contract which is inow coming to an end. They have offered a 6-months renewal at the same rate. They are a nice bunch and the work is pretty interesting.

    Former colleague has started a consultancy and has offered me another £75 a day plus a 1 year contract to go and work with him. That represents a 14% rate hike.

    I guess money and contract length talks, but I'm worried about irritating my current client - they would like to extend me.

    I would welcome any insights. Has anyone been in this position?

    #2
    It’s totally up to you, you are under no obligation to stay.

    And I would look up the term Mutuality of Obligation as it’s relevant to you as a contractor.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      Originally posted by JumpingJack View Post
      My current client offered an initial 3-month contract which is inow coming to an end. They have offered a 6-months renewal at the same rate. They are a nice bunch and the work is pretty interesting.

      Former colleague has started a consultancy and has offered me another £75 a day plus a 1 year contract to go and work with him. That represents a 14% rate hike.

      I guess money and contract length talks, but I'm worried about irritating my current client - they would like to extend me.

      I would welcome any insights. Has anyone been in this position?
      The only question that matters for you is looking at the contracts what is likely to go wrong and what extra options will you have at the end of the next contract?
      merely at clientco for the entertainment

      Comment


        #4
        You are not being offered a three month extension or a years contract - any contract is only as long as it's notice period assuming your client still signs your timesheet.

        A startup consultancy sounds like quite a risk. If was going to take that risk I would tell my current client why I was refusing the extension - who knows they may match or beat your new offer.
        Last edited by TheDude; 8 March 2023, 10:36.

        Comment


          #5
          I'd not be leaving a solid gig to work for a start up I am afraid. Maybe I'm too long in the tooth to be chasing rates or taking risks but what's the stats for startups? 80%+ fail in the first year?

          Also what about your IR35 status. I've very cold on outside gigs at small start ups. The fact he's offered you a year contract screams direction and control. They want you to become part of an all hands to the pump team to build it up. They aren't mature enough to have set roles or fixed statements of work, particularly for a year. You'll be doing anything they ask you as they grow. The 1 year sounds like they want you as a capable individual, not a supplier providing a set piece of work.

          So on the basis you've got an extremely suspect outside IR35 status I'd say no.

          And to echo TheDudes point. Duration of contract is irrelevant. They can walk you on the day if they want, it's there in the contract. Just the fact it's an off the cuff one year with no detail of the work that should last you that long sets the alarm bells ringing for me.

          I'd be telling the agent you want a rate rise at your current client and stay.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by northernladuk View Post
            I'd not be leaving a solid gig to work for a start up I am afraid. Maybe I'm too long in the tooth to be chasing rates or taking risks but what's the stats for startups? 80%+ fail in the first year?

            Also what about your IR35 status. I've very cold on outside gigs at small start ups. The fact he's offered you a year contract screams direction and control. They want you to become part of an all hands to the pump team to build it up. They aren't mature enough to have set roles or fixed statements of work, particularly for a year. You'll be doing anything they ask you as they grow. The 1 year sounds like they want you as a capable individual, not a supplier providing a set piece of work.

            So on the basis you've got an extremely suspect outside IR35 status I'd say no.

            And to echo TheDudes point. Duration of contract is irrelevant. They can walk you on the day if they want, it's there in the contract. Just the fact it's an off the cuff one year with no detail of the work that should last you that long sets the alarm bells ringing for me.

            I'd be telling the agent you want a rate rise at your current client and stay.
            The other contract is a startup consultancy - as such it depends on how they are handling finance to ensure you are being paid but there are ways to facilitate that which would work really well for everyone involved (Sonovate exist for a reason)..
            merely at clientco for the entertainment

            Comment


              #7
              I did a two year gig with a start up consultancy run by someone I knew personally. I got a superb rate which priced in travel to Nottingham, that I never needed to do because Covid lock down started on my very first day.

              It was overall a good experience and I'd work with them again but I would be cautious if you're new to contracting. Start up consultancies don't always have the cash flow and this was reflected in the terms I was working to. I was on 45 days, paid when paid. 90% of the time this ran perfectly. There were a few instances where the client messed around and didn't pay the consultancy on time and payments to MyCo were delayed. The most was by a week but, depending on the relationship your friend has with their clients, this could stretch out longer and you need to decide what level of risk you're willing to accept.

              Also get the contract fully reviewed - not just for IR35. Another small consultancy I worked with had a terrible contract that was a cut-n-shut of goodness knows what. I refused to sign it and gave them the IPSE template which their 'solicitor' didn't like because they ultimately didn't understand the difference between employment terms and a contract for service. We got there in the end but it took some firm holding my ground.

              Comment


                #8
                I worked with a start up (well they had actually been going a few years but behaved like a start up, but I digress) and it was fun in as much as they adopted technology quite early but getting paid by them was painful and they acted like they were doing me a favour when they did.

                Nothing wrong with a solid contract but ultimately for you to decide.

                Comment


                  #9
                  Ok thanks all, interesting responses...
                  Much appreciated!

                  Comment


                    #10
                    As your friend’s start up is a consultancy, do you know anything about their end client (s), and what the IR35 status would be? Also what kind of work, etc?

                    I’d not be too worried about your current client tbh, if they only offered a 3 month contract to begin with then they can’t complain if you leave at the end of it. Just do a good handover, etc. I’d agree with others though that negotiating a rise for the contract renewal if you decide to stay is a good plan, as you’re in a good position to negotiate.

                    Comment

                    Working...
                    X