Bit of contract advice please

**NotAllThere** · 15 June 2012, 05:38

Tell the client (or agency) that you'll be looking for work elsewhere, as you cannot afford to sit at home while they sort things out, so you'll be seeking other contracts. You'll use best endeavours to do the project work once it exists, but they might now have to work until you're avilable.

Much depends on your contract, but I doubt you could be found for breach. A principle of contract law is "consideration". While there's no obligation for them to provide you with work, if they're not paying you to hang around, they can't insist you don't work for someone else. If the project becomes live then they'll just have to be flexible - as you have been - or get someone else.

If you're really worried, talk to someone like Roger Sinclair (Egos).

I was in this situation myself once, when I waited three months for security clearance to come through. I was happy to take the time off - huge rate, long term contract - but the agency were terrified I'd find other work. There was never any mention of "if you do that we'll get you for breach".

**cojak** · 15 June 2012, 07:27

I'd find another contract and then tell them that you won't be attending or billing on this contract. The agent will have to acknowledge this and will probably let you go.

This isn't a normal bail out - the contract just hasn't worked out the way either party expected.

**clangers272** · 15 June 2012, 08:28

Thanks for the advice, that's pretty much the conclusion I'd come to. Time to move on I think!

**northernladuk** · 15 June 2012, 09:32

It is refreshing to see some that actually seems to understand their role as a contractor in the bigger scheme of things and isn't on here complaining they are not getting paid even though they are not doing anything etc etc....

It isn't a pleasant situation but to look at some benefits of a poor situation.... Keep hold of any corresponance saying they have no work for you. This very clearly demonstrates MOO is in place and being used which will stand in you great stead for IR35.

Also, if you can, try and get yourself in a position where all parties know that no work is forthcoming, you are looking for extra work and the contract is effectively over... BUT.... try not to actually mention that the contract is dead if possible. You could get yourself in a situation where you have two contracts going in parallel. A new one and one that is subject to MOO on the clients side. Having two contracts running in parallel is also another strong IR35 getout. Ok it won't stand up very well to close inspection and if certain parties say the wrong thing but still, a better position than cancelling one and starting another.

Not the most desirable outcomes but still, better to get something from your situation, even it is only for protection in the unlikely event of an investigation.

Word your exit well and you could still be in the frame if anything kicks off in the future. I am sure many posters here would have kicked off by now, made a menance of themselves to the client and agent and ruined any chance of potential future work.

Good luck in your search.

**BolshieBastard** · 15 June 2012, 10:48

Originally posted by clangers272 View Post

Hi all,

Hoping someone on here can give me a few pointers regarding a potential contract issue?

I've recently signed an extension to a contract agreement starting from the beginning of this month. Everything was going well up until the last three weeks, I completed the previous extension working each day of the contract.

After signing the new contract extension I've been offered work precisely one day work in the last three weeks. The schedule states a number of days work during the length of the contract extension with the client.

I suspect the issue is that whilst the client offered and signed the extension in good faith unfortunately they haven't been able to sign off on the project that I was due to undertake. I've been attempting to seek clarification with the client with regard to a project start date and have been confronted with excuses and delays ranging from 'not quite ready yet take a few days off' through to complete silence this week. My requests for a start date or at least an update to the current position no longer receive a response at all.

Effectively I've been benched for the last three weeks with the client not offering work, communicating their position and attempting to delay the start of a project that may no longer even exist. I'm concerned that if take other work on the client may resurface and insist I honour my side of the contract and I could end up in breach of contract?

What would be a reasonable approach here?

Any advice would be appreciated.

MOO.

Puts you in a good position for IR35. I'd be looking for another role tbh. Then if you find it, terminate your current contract and quote the MOO clause in it.

**clangers272** · 15 June 2012, 10:50

That's great advice northernladuk, thanks very much. I've already found another potential role yesterday.

I tend to view myself as being in business, they've been a decent client and I've no desire to upset them. It's very difficult out there at the moment for everyone so I completely understand if something doesn't work out or even if the client prefers a better/cheaper option to me. No point burning our bridges at the moment, I'd really just like a bit clarification from them.

Thanks again.

**psychocandy** · 15 June 2012, 11:52

Originally posted by BolshieBastard View Post

MOO.

Puts you in a good position for IR35. I'd be looking for another role tbh. Then if you find it, terminate your current contract and quote the MOO clause in it.

Why not keep both contracts just in case the 2nd one doesnt pan out or turns out like the first one?

If the 2nd one does turn out to be full time and then 1st one then decides they want you just decline to do the work as you can under MOO surely? Exactly as they did.

**BolshieBastard** · 15 June 2012, 13:40

Originally posted by psychocandy View Post

Why not keep both contracts just in case the 2nd one doesnt pan out or turns out like the first one?

If the 2nd one does turn out to be full time and then 1st one then decides they want you just decline to do the work as you can under MOO surely? Exactly as they did.

Yeah, sounds good in theory. But 2 or 3 weeks into the new contract the first client says 'right we've got budget and you are tied to your desk blah, blah, blah.' So, you've now got to get a sub contractor sorted very quickly who the client may not want to engage and get into all sorts of other issues.

Yes, I know all this is good for IR35 too but I can just see it growing into a real pain. Just my opinion though.

**Wanderer** · 15 June 2012, 20:54

Originally posted by clangers272 View Post

Effectively I've been benched for the last three weeks with the client not offering work, communicating their position and attempting to delay the start of a project that may no longer even exist. I'm concerned that if take other work on the client may resurface and insist I honour my side of the contract and I could end up in breach of contract?

What would be a reasonable approach here?

Try getting a plumber to come to your house on an hourly or daily rate and then sit there for a week not getting paid while you faff about. It ain't gonna happen so I wouldn't put up with someone doing it to me either. If they signed you up to work 5 days a week for them then it's not unreasonable to expect that they should provide work for you to do. It's a nonsense to hire a contractor and then give them no work. Go and have a chat to them and tell them they can't engage you on a contract then leave you sitting on your arse doing nothing and not getting paid until they pull their finger out and arrange some work for you to do.

And before someone starts bleating about IR35 and MOO, they can stick that where the sun don't shine too.

Bit of contract advice please