First time contractor Advice - Resign before receiving contract

[northernladuk]

I must say, though - I don't want to be out of work but having spent years being scared about the idea it's kind of liberating to think that I'm in a position where it doesn't me worry me anymore. That's probably one of the biggest mental changes I've had about contracting.

Funny thing about being out of work. Every time a contact comes close to ending I go through a rush of emotions. Starts off about 6-8 weeks before end when confirmed no extension so a bit of regret if it was a good gig. 6 weeks a bit nervous about going back out to market and not getting anything but don't bother looking at jobserve just yet. 4 weeks or less excitement when I see there are some interesting roles out there and then finally total guilt in the final week when I end up with a couple of offers from people who I applied for and ones I found internally and have to let someone down.

The buzz of the landing the next gig always gets me off though. Makes it worth contracting.

[vwdan]

How confident are you in your ability?

I've told umpteen permies over the years thinking about contracting that they have to resign so that they are available immediately for contract. Very few of them do and are still complaining about the permie life

So, in a word: JUMP

+1 - It was by far the most daunting aspect of going contracting, but nobody was interested in waiting for my notice period. I'd got savings though and knew I could probably get a crappy support contract if I needed to.

I was close to my old company and got along well with the MD, so rather than a notice period we just agreed an end date that worked for us both. It wound up being several months, but it was nice to give a definitive date to agencies. As it happens, I signed my first contract a couple of weeks before and they waited - but it was a definitive date from the first phone call, not a "let me sign a contract and then it'll be two weeks".

Best decision I've made in a long long time.

As above, if you can't leave your job tomorrow and be prepared to deal with it then you're not in the right place to contract. My first contract was meant to be 8 weeks. Then it was dropped to 7 because they had to wait a week (It aligned with a project) and in the end it was 6 because I delivered a week early. Actually, I'd delivered two weeks early really but they asked me to do some go-live support and actually gave me the last day as a thankyou.

I must say, though - I don't want to be out of work but having spent years being scared about the idea it's kind of liberating to think that I'm in a position where it doesn't me worry me anymore. That's probably one of the biggest mental changes I've had about contracting.

[TheFaQQer]

Lol I wish I had a quid for every year of work that's supposedly lined up, keep being told there's two years of work lined up at a Gov agency I worked at, don't take a long term contract, it's happening soon, two years later no sign and as far as I know it's all canned. Don't believe anything other than your own instincts.

Contracting for money is not the reason to go contracting, the money is more or less the same if you take it in the prescribed most tax efficient way, just you stash more away in the company for rainy days, of which there will be many.

+1 I'm still waiting for the five year contract that I was promised five years back - "when we win the work, we'll need you to come in - I'm talking needing a three month notice period from you, and a two year initial contract, working from home..."

A few years back, I accepted a contract offer for nine months initially on a seven year government programme - just needed to transfer my clearance over (already cleared for the role). Six weeks later, before the clearance was transferred, the prime contractor re-jigged who was doing what, and my role moved to a different sub-contractor and disappeared completely.

My first contract was three months. At the end of that, I signed a nine month extension and turned down other work. A week later, contract was terminated with immediate effect.

[stek]

The safeguard i know is that the Program manager (who interviewed me) told me there's at least 18 months of work and she is recruiting for a variety of roles, i understand there is the risk that the role could be pulled but a risk im willing to take.

So many things i want to do in life financially but a Perm salary doesnt give me that flexibility.

Lol I wish I had a quid for every year of work that's supposedly lined up, keep being told there's two years of work lined up at a Gov agency I worked at, don't take a long term contract, it's happening soon, two years later no sign and as far as I know it's all canned. Don't believe anything other than your own instincts.

Contracting for money is not the reason to go contracting, the money is more or less the same if you take it in the prescribed most tax efficient way, just you stash more away in the company for rainy days, of which there will be many.

[quackhandle]

Fair one.

You might want to make sure you have a line of easy accessible credit just in case if/when things go tits up.

qh

[Daplayer321]

Thanks for the feedback guys.

The agent who contacted me was the direct HR representative of the company so no third party agents involved.

Unfortunately i dont have a war chest and am hoping of saving up a decent amount after a few months of contracting.

Yes my notice period is 4 weeks and the company im looking to get a contract is reputable and based in Canary Wharf and yes i am open to the risk if contract falls through and have back up plan (move back with parents and can get a temporary job sorted until something else comes up).

The safeguard i know is that the Program manager (who interviewed me) told me there's at least 18 months of work and she is recruiting for a variety of roles, i understand there is the risk that the role could be pulled but a risk im willing to take.

So many things i want to do in life financially but a Perm salary doesnt give me that flexibility.

[TheFaQQer]

Before my contracting days I left a permie job with nothing lined up as I was close to doing something I would regret so it was best I left.

Easier with no kids/wife/mortgage, etc but to the OP, what's the worst that can happen? Contract pulled so no income for six months; can you survive that? Mentally as well as financially? How about twelve months? Look at some threads on here it can and does happen.

Sometimes you have to grab life by the balls and go for it. Or you can play it safe.

Good luck.

qh

This. If you can't cope with the idea of not earning for a few months, then this isn't the right thing for you. Of course, it's easier to be benched once you've had a few contracts and have saved, but you have to be prepared that even if you have that contract, they could get rid of you on (or before) the first day, or at any stage of the contract.

It's a mindset change, and you have to be prepared to cope.

[quackhandle]

Before my contracting days I left a permie job with nothing lined up as I was close to doing something I would regret so it was best I left.

Easier with no kids/wife/mortgage, etc but to the OP, what's the worst that can happen? Contract pulled so no income for six months; can you survive that? Mentally as well as financially? How about twelve months? Look at some threads on here it can and does happen.

Sometimes you have to grab life by the balls and go for it. Or you can play it safe.

Good luck.

qh

[Batcher]

How confident are you in your ability?

I've told umpteen permies over the years thinking about contracting that they have to resign so that they are available immediately for contract. Very few of them do and are still complaining about the permie life

So, in a word: JUMP

[TheFaQQer]

If you have a signed contract, and it falls through, and you are a PCG AIPSE member (and have been for long enough) then you can claim on their insurance policy.

[northernladuk]

We have had a number of posters on here, some pretty recently, that handed in their notice even with a signed contract and it still evaporated before they could start leaving the poster in notice period with nothing to go to. Even with a signed contract nothing is assured. How long is your notice period? 4 weeks? Expecting contracts to wait for permies notice period is always fraught with risk.

Personally there isn't a chance in hell I would hand my notice in before signing a contract, but even if I did I would be aware that just because I have a contract it doesn't mean anything is cast in stone. At least by getting a contract signed you know the client wants you in and you are not at the mercy of a lying agent. I seem to think in one of the previous threads the poster found out the role hadn't even been signed off by the client, let alone getting to signed contract stage so the agent had effectively screwed him over.

[ShandyDrinker]

Hi,
Just wanting advice from the experienced contractors here, what would you do in this case? Would you hand in your notice before you get the actual contract?

The perennial problem when moving from perm to contract. Only do it if you know what you are getting yourself into. Do you have money to survive if the offer is withdrawn, for example? Are you confident enough in your skill-set to be able to secure other work if it falls through?

I did this very thing when I started contracting but made sure had built up a war chest before starting. I was very fortunate to have been recommended for a contract direct so didn't have any agency shenanigans to worry about.

It all depends on your attitude to risk.

Good luck.

[Daplayer321]

Hi,

I am in the process of getting my first contract (Perm to Contract) as a BA within London (Provided everything goes well in the 2nd interview).

Now in the first interview they mentioned that if they gave me an offer then they would want me to hand in my notice however the contract wont usually be generated for at least 2 weeks? But i thought you would hand in your notice once you have signed the contract however the interviewer also said this should be fine but if i had a criminal record (which i don't of course) then they would withdraw the role.

Just wanting advice from the experienced contractors here, what would you do in this case? Would you hand in your notice before you get the actual contract?

Thanks,