Stupid situation

[VitaliD]

Guys,

I am in a stupid situation and need advice. Few days ago I verbally accepted a contract (by phone); after that I had another interview and got MUCH better offer which I also accepted by phone (verbally). I haven't signed the first offer yet, but the contract probably has been sent to my umbrella company already, and probably the second one too. Now what do I do? Can I just say "Sorry, I've changed my mind" to the first client/agency? Probably yes - I haven't signed the contract. Will I look very stupid? Absolutely - I am supposed to start working for the first client on Monday. Will this agency ever deal with me again? Probably not. Will other agencies know about that situation? I hope not.

Basically, what trouble can I get into if I say "Sorry" to the first client/agency?

[Mordac]

Technically, you don't have to worry. No signed contract etc.
However, if the agent and client are big players you may well be burning bridges you can't afford to burn. Only you can make that choice. However, if you wish to be regarded as a professional, you should honour your verbal agreement. Hurts like hell sometimes, I know, I've lost count of the times I wish I'd held off making the decision, just for an hour or two.
You could always take both and subcontract the less lucrative one, of course. But you knew that already, you were just testing us, right?

[VitaliD]

You could always take both and subcontract the less lucrative one, of course. But you knew that already, you were just testing us, right?

No, I didn't know that. I can't see how that's possible. Are you joking?

[Mordac]

If it's with an agency, it is actually rather difficult. The clause you need is "right of substitution" (which you should always insist on, it's arguably the biggest pointer to being outside IR35) and yourco then invokes the clause. You find yourself an agency you can trust, hire yourself a contractor and he/she does the second gig, while you take a small percentage. Most agencies will probably tell you to get stuffed, but if you present yourself as a business, you never know...

[VitaliD]

No, that's unrealistic in this particular case - I don't have an Ltd, work through an umbrella company and agencies - no way. And threre is no need to, as I haven't signed the contract.

I will, however, try hard to avoid situations like this in the future - it's my early days of contracting, so I give some room for mistakes to myself, but not for long time. If I keep doing this, I will soon run out of agencies willing to put my CV forward

Anyway, thanks for replying.

[thunderlizard]

If you've accepted both but only have resources to do one, then you're going to have to disappoint one of them anyway. So it might as well be the one you're charging less for.

[ChimpMaster]

Think about contract duration, stability and new skills that you may learn. How good will each client look on your CV?

i.e. there is more than money that can help sway your decision. Having said that though, if the difference in rates is substantial, go for the more lucrative one -- after all you are [acting as] a business and need to maximise your profitability.

You never know, the first agency make up the rate otherwise they lose out anyway.

Also think about the flip side - if the first client or agency found someone cheaper they could drop you at any time (notice period pending, which you could also invoke).

[el duder]

i dont see the problem, just call the agency and say you have had a better offer and that you will be declining the contract.

simple. no pissing people off, its a fair game yoiu got offered a better contract.

tell them how it is, they will understand.

same thing happened for me, but with interviews. client made me wait 2 weeks for an interview, in the meantime i got offered a contract and accepted it. told the client to **** off, well through the agency that is.

got a better offer canned the interview, simple as that.

[Mordac]

That's not the same as accepting a contract verbally and then backtracking when a better one comes along. You would bitch like hell if an agent did the same.
The agent and the agency (and probably the client) are going to remember you for a very long time, so if you think you can live with that, fine. Just remember though, what goes around sometimes has a rather nasty habit of coming around.

[ratewhore]

I don't see a problem. I don't believe agencies keep a list of contractors that piss them off. They're all too busy pushing bodies through the door.

Phone em up, tell em you're not taking the gig. Next time you apply to them they'll have forgotten all about it and will be blinded by the commission they'll get for placing you this time around...