Reply to: 2 x contract offers. How to bide time

[scoobs]

I'd treat the bridging contract as inside IR35, personally, and pay my salary and pension contributions out of it.

It probably should be inside IR35, and it isn't going to cost you a lot of money to treat it that way. If you treat it as outside the tax man may just think you are taking the mick if you ever get inspected, and then you've got trouble.

thanks. my accountant will look at this.

[WordIsBond]

I'd treat the bridging contract as inside IR35, personally, and pay my salary and pension contributions out of it.

It probably should be inside IR35, and it isn't going to cost you a lot of money to treat it that way. If you treat it as outside the tax man may just think you are taking the mick if you ever get inspected, and then you've got trouble.

[scoobs]

I personally wouldn't worry about the extension. If you are good and they need you, they'll find a way to extend you. If you are good and they don't need you, they might offer you a permie job but they won't extend. If you aren't good, you've got bigger problems.

Sure, being a little more expensive may make it easier for them to decide not to extend, but if you are good you'll be able to find something else. And the extra fifty quid a day for six months should ease the pain of that, unless you just waste it.

i'm of the same thinking tbh...from the conversations we've had, she's mentioned that the last person (also a contractor)was here close to 2yrs we're looking for someone beyond the 6 months as we have a number of projects, solutions to deploy....providing as you say, i don't screw up, can't see them binning me after the initial 6

[scoobs]

Not sure if I totally understood you, but doesn't this sound a lot riskier and more likely to go wrong than just signing a single contract and carrying it out? Also the multiple project stuff - feels a little permie-esque to me, do you think Client 2 might be thinking of the role as more of a Bum on Seat temp worker role than a contractor role?

they have one project in mind as part of a wider programme of work...which we've spoken about...budget signed but they're not ready for me yet, apparently! however due to the fact i have this other offer i think i've forced their hand and to avoid loosing me they are looking to assign me onto another project temporarily UNTIL the one which i have been hired for gets the greenlight to start...so yes, there is a bum on seat element until we're ready....thats how i understand it

[man]

Plus they've given me an initial short term contract with rolling until the project i've been identified for is ready. My fear is if they have further delays in this project, will they can me after a month. Agent said no they'll keep you rolling on another project.

Not sure if I totally understood you, but doesn't this sound a lot riskier and more likely to go wrong than just signing a single contract and carrying it out? Also the multiple project stuff - feels a little permie-esque to me, do you think Client 2 might be thinking of the role as more of a Bum on Seat temp worker role than a contractor role?

[WordIsBond]

I personally wouldn't worry about the extension. If you are good and they need you, they'll find a way to extend you. If you are good and they don't need you, they might offer you a permie job but they won't extend. If you aren't good, you've got bigger problems.

Sure, being a little more expensive may make it easier for them to decide not to extend, but if you are good you'll be able to find something else. And the extra fifty quid a day for six months should ease the pain of that, unless you just waste it.

[scoobs]

What’s FB?

Feedback

[MrButton]

What’s FB?

[scoobs]

thank you all for your envaluable FB.

Let me provide some further info as discussions have been ongoing as well as responding to some of your questions.

Location for both roles are in London. So commute time is similar for both. In time there will be scope to WFH.

Both clients are great on the CV i feel but client 1 i believe has greater global presence as its a large consultancy. If all things were equal i think i would go for client 1 as it's a close one.

I spoke with Client 1 told them about the counter offer and the attractiveness for me of an early start with client 2. i.e. next week. They have gone back and looked to get the rate increased. So, subject to one final signature for approval they're going to be closer to client 2 offer. i.e. different of £50 Per day. Only caveat apparently now is that with the higher rate this contract is now 6 months. If they want to extend they need additional approval where as with the previous lower rate it apparently was easier for them to auto renew. On the same token she did also add that if however if the duration of the programme is longer then theyre likely to get me extended as it doesn't make sense to stop the contract after 6 months.

So in summary, client 1 brand is slightly better, i'm leaning towards them as they've been clear during the process. No agencies here to as i contacted them direct. However, 6 months term but you never know on extension. couple of weeks for vetting which is a drag as i want to start working ASAP. It's costing me!

Client 2 allows me to start next week, better day rate (£50 PD better) and according to agent they tend to extend and keep good contractors. Negative is my previous experience to date. They said yes couple of months ago and i've been waiting and now acted once i have an offer. Plus they've given me an initial short term contract with rolling until the project i've been identified for is ready. My fear is if they have further delays in this project, will they can me after a month. Agent said no they'll keep you rolling on another project.

Hope this helps. Thanks again for your valuable FB. Really appreciated.

[WTFH]

Not sure I agree here.

Starting today on £450/day for six months vs starting one month down the road on £550 means you will be playing catch up on earnings from the £550 gig.

Yes, 4.5 months to recoup it

[simes]

There is absolutely no dilemma here, go for option 2 with the higher rate. Never under sell yourself or lower your rates.

Not sure I agree here.

Starting today on £450/day for six months vs starting one month down the road on £550 means you will be playing catch up on earnings from the £550 gig.

I would tend to go for the first thing that concretely offers, and negotiate up while in.

[WordIsBond]

Sounds like you told client 2 about the first one and so they are trying to expedite things.

Have you told client 1 about client 2? Maybe they'd come up to £500.

If rates were even and both offers were firm, which would you choose?

You have to decide what is important to you and how much it is worth. Is a 'sure thing' really worth £100 / day? It might be if you have no reserve for bench time. It might not be if you can afford to have some time off.

Location, work you enjoy, certainty, likelihood of extension, which looks best on your CV in future, these all have some value. But you are going to have to compare the different roles and decide, of the things that are different, how much each of those is worth to you. Nobody else can tell you what you should value, and how much you should value it, that's on you.

Add those values up, and make your decision. But don't forget that having two options can put you in a strong negotiating position. If the role you prefer falls a little short, tell them you've got another offer you'll need to take if they don't come up with a little more. If they do come up with more, take it and enjoy, if not, take the other.

[Lance]

Tell client 1 you've been offered £600 by client 2, and would they like to come closer to that figure, as you'd really like to work with them.

[northernladuk]

There is absolutely no dilemma here, go for option 2 with the higher rate. Never under sell yourself or lower your rates.

I think the OP already knows this what with his post containing no information on other relevant factors as WTFH said.

[fullyautomatix]

There is absolutely no dilemma here, go for option 2 with the higher rate. Never under sell yourself or lower your rates.