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IR35 - Contract with 80% time, 20% deliverables.

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    #11
    Thanks for all the opinions given on this, I do find it interesting and informative, and helpful to hear the opinions I don't really want to hear either!

    Originally posted by jamesbrown View Post
    On the other hand, holding back a certain fraction of the total value of a contract until the entirety of the work is delivered satisfactorily (in a defined way) is a completely legitimate commercial/risk strategy and one that I encounter every so often and I am generally happy to work with, providing the acceptance criteria are spelled out adequately and it isn't a transparent scam to save a certain fraction of the contract value (afterall, IR35 isn't the only risk out there...).
    The first piece of work I did for my current client was done on a 100% deliverables basis. I estimated 6 months and was talked down to 5. In the end it took 5.5, so cost me 2 weeks work unpaid effectively. The work was done to a detailed spec drawn up between myself and the manager that recruited me for the job. This manager is a great guy, older, quiet and generally sidelined, but when given the chance to draw up a spec and agree it with me as a contractor, he really put the effort in.

    After that we switched to a day rate, with 0% on deliverables. The project direction is handled by a different manager who acts as "product owner" and does so in the style of a headless chicken.

    I am considering asking them to switch back to something more deliverables focussed, especially if it will help with the IR35 determination, hence this thread and my OP question. But mainly the idea appealed to me because getting a detailed spec or at least some %age of one would actually benefit me in that I can plan my time more effectively and not be messed around by people constantly changing their minds. So it would reduce risk on both sides at the cost of the clients people actually having to do some real thinking and work in coming up with the agreement rather than just pulling it out of their a***s during a "sprint planning" meeting, which is how things currently work.

    Sent my contract today to be IR35 reviewed by legal experts. I have been there a while and feel things might be getting a bit risky. So I may also stop at the end of this contract if things cannot be made clearer both with regard to the work and to IR35.


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