contract length

[Hobosapien]

You are forgetting the financial cycles don't always follow the need. If they renew every three months regardless then the length of contract time is in no way relative to the work needed.

For sure, renewals are a different ball game to the initial contract in terms of length.

[northernladuk]

A longer one is safer in that the length is based on the client's forecast of required resource and what their budget allows, so if they offer a 6 monther it's likely they will be needing that resource for longer than if they were only willing to offer a one monther.

Just don't fall into the trap of thinking the length is guaranteed, as has been pointed out it's the notice period that is the only length guaranteed and many contracts outside IR35 don't have a significant notice period (no notice period is better to avoid permie type obligations).

You are forgetting the financial cycles don't always follow the need. If they renew every three months regardless then the length of contract time is in no way relative to the work needed.

[SussexSeagull]

All things being equal and assuming you like what you are doing six months is preferable to three months but if the project gets pulled you are going to end up going in either instance.

[Hobosapien]

A longer one is safer in that the length is based on the client's forecast of required resource and what their budget allows, so if they offer a 6 monther it's likely they will be needing that resource for longer than if they were only willing to offer a one monther.

Just don't fall into the trap of thinking the length is guaranteed, as has been pointed out it's the notice period that is the only length guaranteed and many contracts outside IR35 don't have a significant notice period (no notice period is better to avoid permie type obligations).

[northernladuk]

Contracts are only.as long as the notice period and not even that. Assuming a longer one is safer than a short one is pretty flawed IMO. Could be the case but still not a safe assumption IMO and experience.

[heyya99]

In these uncertain times, I'd favour longer contracts over shorter ones. Yes, a short one means more rate rise negotiation points, but it also means more chances for the client to ask 'do I want to renew? / this is a chance to cut costs'. Best not to have them asking that question.

[Lance]

Lot of clients dont see it this way though. If contract is 3 months they'll keep you regardless....

Its been signed off somewhere higher up so theres no point in the local people getting rid of you early in a lot of cases.

I was on 3 month renewals at a client. The head of IT got sick of going through the same cycle with 20 contractors so he got budget signed off and renewed them all for 9 months so he could focus on his real job.

[SuperZ]

It's worth bearing in mind that some mortgage companies like to see that a contractor has at least three months left on their contract at the point of completion.

That's not a daft requirement that

[rsingh]

It's worth bearing in mind that some mortgage companies like to see that a contractor has at least three months left on their contract at the point of completion.

[psychocandy]

Lot of clients dont see it this way though. If contract is 3 months they'll keep you regardless....

Its been signed off somewhere higher up so theres no point in the local people getting rid of you early in a lot of cases.

[LondonManc]

Rates won't move anywhere unless you both find out that the agency is stiffing you over. This may be discovered at some point anyway and the client will force a new contract to be fairer for both them and you if you're worth keeping. Longer contract length (6 months rather than 2) is also better if the client has an approval cycle to go through.

[northernladuk]

Sometimes it depends on the clients billing cycles as well. You could well be on a year long project but they renew every three months because that's their policy.

I certainly wouldn't be cutting my contract lengths on the outside chance I might be able to get a couple of quid of an agent.

[bikeman]

I think it's probably true that the length of a contract is a pretty pointless thing, if they don't want you they'll terminate you regardless of contract length.

My thoughts are that contract length is more about them keeping hold of you. It's beneficial to me to keep the contract as short as possible so as to open up renegotiation of rate as soon as possible.

Too simplistic?