New contract offer

[Kramedoog]

Hi, I wondered if any of you guys could give me some advice on the approach to take on this contract offer.
I have been offered a contract, which "should" start mid Feb - early March, but the contract can not be raised until after the design phase of the project. My current contract ends on the 23rd December, so it would be a least two month wait.

Obviously, I cannot afford not to not look for any other work until then, as we know things can change easily in two months and nothing is guaranteed in this line of work.

What do you think the best approach to take? Possibly suggest a retainer for the 2 month period? Any advice appreciated.

[nomadd]

What do you think the best approach to take? Possibly suggest a retainer for the 2 month period? Any advice appreciated.

With the way the economy currently is, I think it's unlikely they will pay you for just sitting around. My advice, get another gig. If this thing comes off (unlikely, by the sound of it) explore your options at that point.

[northernladuk]

What is the notice period on it? I would accept it and then just keep looking as if I hadn't signed it. If you get another gig you invoke the notice period on the contract (being pedantic here) and start the other gig.

If you don't get a gig you can always fall back on this one.

Do not give them much credit, if (and quite possibly when) the design phase is late they will not hesitate to delay your start so don't feel guilty about saying yes then dropping them like a stone later.

[Mister Clark]

Retainer could be seen as pointer to IR35 (mutual obligation), however I don't have a better suggestion.

Me, I would get my PCG subscription and focus on making sure the other key pointers (substitution, direction etc) to IR35 status put me well outside (working condition not withstanding).

Whatever you do don’t sign a contract that could put you out of pocket come Feb *if* it all goes south.

[rd409]

What is the notice period on it? I would accept it and then just keep looking as if I hadn't signed it. If you get another gig you invoke the notice period on the contract (being pedantic here) and start the other gig.

If you don't get a gig you can always fall back on this one.

Do not give them much credit, if (and quite possibly when) the design phase is late they will not hesitate to delay your start so don't feel guilty about saying yes then dropping them like a stone later.

WNLUKS.

[rd409]

Retainer could be seen as pointer to IR35 (mutual obligation), however I don't have a better suggestion.

Can you not just make the contract start from Jan and then bill for a fixed amount? How can the retainer be a pointer to IR35? The client is just reserving your services, isn't it?

[Mister Clark]

Can you not just make the contract start from Jan and then bill for a fixed amount? How can the retainer be a pointer to IR35? The client is just reserving your services, isn't it?

My take would be your getting paid for doing nothing; I get paid for providing professional services required to deliver a project.

I'm not saying it def is a pointer (I'm not an accountant) but from a conceptual point of view I don't think there is a massive difference between getting paid holidays/sickness and a retainer (happy to be persuaded otherwise).

If it were me in this situation I would be pragmatic, negotiate a retainer and make sure the rest of the contract + working conditions put me well outside IR35, just in case.