Longer contracts

[Ashwin2007]

I recently interviewed for a position which was advertised as 3 months, but after the interview, they are offering me 12 months contract.

I heard someone saying that a contract is effectively as long as the notice period (in this case 4 weeks). So, does the long term contract offer any benefit? Or does it have any disadvantage - being looked like an employment rather than cotract..? Why would a client prefer to offer long term contract?

[VectraMan]

Assuming there's a get out on both sides, all it really means is you agree to fix the rate for 12 months.

The benefit to them is they'll try to use the length to justify talking your rate down, and they know you can't try and jack up the price after 6 months.

[zara_backdog]

Prehaps they know the Project is going to take that long and offer a longer contact to try and ensure consistancy in their team.

Also, there must be some contractors who would relish the though of a 12 month gig, especially if the rate agreed at the begining is favourable. Agter all, there are those out their who have been at the same place for years.

Hubby works in the aeospace industry and one contactor has been there for three years on a weekly renewable contract - stange he has not had a day of in two years.......

[Ashwin2007]

Assuming there's a get out on both sides, all it really means is you agree to fix the rate for 12 months.

The benefit to them is they'll try to use the length to justify talking your rate down, and they know you can't try and jack up the price after 6 months.

Yes, it appears that the longer duration was offered to make me to agree for a lower rate. In fact, I forgot what rate I mentioned to the Agent during the initial discussions. When the interview completed, she told a rate, and immediately offered longer term, if I agreed.

But the quesion is: Do they really mean long term upto 12 months? They have 4 weeks notice period, and could terminate any time...

[ratewhore]

But the quesion is: Do they really mean long term upto 12 months? They have 4 weeks notice period, and could terminate any time...

Yes they could. But, if you're happy with the contract and the rate, what's the issue? That's contracting and at least you have up to 12 months of turnover organised, notice notwithstanding...

[Ashwin2007]

Yes they could. But, if you're happy with the contract and the rate, what's the issue? That's contracting and at least you have up to 12 months of turnover organised, notice notwithstanding...

Good Point. I am going to sign this 12 months contract.

[ChimpMaster]

The other benefit is that it takes you off the radar for the next 12 months, which in today's market is a good thing. So if the company starts to look at cost cutting initiatives and hence stops renewing contractors (or cuts their rates on renewal) - you won't have to worry about for another year yet.

[PAH]

I've been offered a couple of long contracts in the past (6-12 months), but if the rate isn't good enough, the length of the contract shouldn't sway it.

Don't for a second believe that an agent won't try to entice you with a long contract, even though their's with the client may only be 3 months, in an attempt to get you at a lower rate. They will terminate without blinking an eye once the client has no further need for you.

It's true about a contract only really being as long as the notice period. At the interview you should assess how big the project is and how long they're likely to require you (if all goes to plan).

As it turns out, all my previous contracts that were at a rate I was happy with, started out at 3 months initially, and went on for at least a year. So same difference really in terms of contract length, except I started on a more favourable rate, and had the opportunity to negotiate a rate rise every 3 months!

Of course, in today's climate, getting any offer on the table at all shouldn't be sniffed at.

[Another Dodgy Agent]

Don't for a second believe that an agent won't try to entice you with a long contract, even though their's with the client may only be 3 months, in an attempt to get you at a lower rate. They will terminate without blinking an eye once the client has no further need for you.

Jackanory!

No agent in the land will offer you a longer contract than the client is willing to provide. This misinformation is a) quite daft and b) unecessary.

The agency will match whatever duration the client provides. Unless you can produce any form of evidence to match your statement above then I suggest you are perhaps misguided in your knowledge of how the process works.

[TykeMerc]

Jackanory!

No agent in the land will offer you a longer contract than the client is willing to provide. This misinformation is a) quite daft and b) unecessary.

The agency will match whatever duration the client provides. Unless you can produce any form of evidence to match your statement above then I suggest you are perhaps misguided in your knowledge of how the process works.

I agree, it's hardly uncommon for the client and contractor to discuss durations especially around renewal times, the agents would come a major cropper if they did this.

All a savvy contractor would have to do is to get the client on side to stitch up the agent and that would be very easy to do.