Suggestions needed

**BolshieBastard** · 29 September 2009, 19:45

Originally posted by BoltonLad View Post

I need some suggestions.

LTD company route - new contractor

I accepted an offer which is 'well below' the market rate just to cross this difficult time and keep some cash flow in.

I stopped looking for work once I signed the contract.I want to continue with them. But too much uncertainty. My actual work is dependent on a major event. Every day the client company is discussing whether to proceed or not. If they decided to proceed, my actual work will start. if they decided not to, same day I will be informed about the contract termination. I am turning down a few good long term opportunities. I am afraid if the client decides not to at the end of October, I will be left with no other options.(I expect no new requirements coming in November and December. I may be wrong.) So I wish to attend the interviews that are coming now. Other contractors working with me are looking for the job outside already.But they are under umbrella company route.

1) The contract says, if the client company terminates the contract, my LTD company contract with the company will end on the same day without any notice. Is it a normal practice? ( it is too late to ask now. Still I want to know)

2) In the substitution clause, the contract says,
"If the Company and the Client accepts the Substitute, the Consultant Company shall continue to invoice the Company."

What if I could not provide them any substitute and still want to exit, can I do that?

Please suggest.

Thanks in advance.

Have to smile at the number of new contractors who want others to advise them how to run their business! These are the things you have to consider when you start contracting. Unfortunately too many people dont.

Bottom line is you have to decide whether to stay put and chance it the contract will continue or, take one of the other opportunities that come up.

But, there no gaurantee if you jack in the current role, you'll be successful in another one. The new client may be put off by the fact you jacked in the first contract so soon.

That's why sometimes you just have to grin and bear it.

**BoltonLad** · 29 September 2009, 19:55

Given the market conditions, I can't be choosy. I need to take whatever matches my skill sets, whatever offers I get. whether permie or contract job. Hope you would agree with me.

I would be grateful if any one replies to my 2 queries.

Q 1) The contract says, if the client company terminates the contract, my LTD company contract with the company will end on the same day without any notice. Is it a normal practice? ( it is too late to ask now. Still I want to know)

Q 2) In the substitution clause, the contract says,
"If the Company and the Client accepts the Substitute, the Consultant Company shall continue to invoice the Company."

What if I could not provide them any substitute and still want to exit, can I do that? ( Suggestions for this...ltd company / not able to provide a substitute ..can I simply give the notice without providing the substitute...Thats my query )

**BolshieBastard** · 29 September 2009, 20:10

Originally posted by BoltonLad View Post

Given the market conditions, I can't be choosy. I need to take whatever matches my skill sets, whatever offers I get. whether permie or contract job. Hope you would agree with me.

I would be grateful if any one replies to my 2 queries.

Q 1) The contract says, if the client company terminates the contract, my LTD company contract with the company will end on the same day without any notice. Is it a normal practice? ( it is too late to ask now. Still I want to know)

It doesnt matter whether its normal practice. It's in your contract.

Q 2) In the substitution clause, the contract says,
"If the Company and the Client accepts the Substitute, the Consultant Company shall continue to invoice the Company."

What if I could not provide them any substitute and still want to exit, can I do that? ( Suggestions for this )

Having a sub has no bearing on whether you can or cant exit the contract.

If you have no termination clause you will have to negotiate an exit with the agent but if they refuse and you walk, you may be billed for loss of commission by the agent.

**BoltonLad** · 29 September 2009, 20:21

My sincere thanks for your reply BB.

It is too late to ask whether it is a normal practice. If I know at least now, (it is not a normal clause,) in future if I come across another contract with similar clause I would be careful not to sign such a contract.

Regards,
BoltonLad.

**scooterscot** · 29 September 2009, 20:24

1st rule of business - look after yourself - period.

2nd profit profit profit - your not a charity.

**BoltonLad** · 29 September 2009, 21:09

Thanks Scooterscot for your reply.

Regards,
BoltonLad

**Hex** · 30 September 2009, 11:59

Originally posted by BoltonLad View Post

My sincere thanks for your reply BB.

It is too late to ask whether it is a normal practice. If I know at least now, (it is not a normal clause,) in future if I come across another contract with similar clause I would be careful not to sign such a contract.

Regards,
BoltonLad.

Having immediate termination from the client side is not unknown. I have it in my contract. It is suggested that it is good from an IR35 perspective as employees don't usually have such a clause and it helps disprove Mutuality of Obligation. I am quite happy with it in my contract. I don't really want 1 month's notice.

As to whether it is "normal", I would reckon that a smallish percentage of contracts have this (maybe 10%?) but I get the feeling it is on the increase.

**BoltonLad** · 30 September 2009, 13:03

Thanks Hex for clearing my doubt.

Regards,
BoltonLad.

Suggestions needed