3 months / 6 months contract?

[thunderlizard]

1) Does a min 6 months contract really mean they will hire you for at least 6 months?

In theory no, for reasons stek gives. In practice, usually yes. I'd guess over 90% of contracts reach full term. I've had about 40 contracts/renewals and only 1 got terminated early.

2) I have a very secure permie job at the moment and feeling that I need at least 6 months contract to make it worth the move, am I correct to assume a 6 months contract is safe enough?

That is a very permie way of thinking! It's not about bum on seat duration, it's about how much money you can bank for a rainy day. 3 months on £450/day probably works out safer than 6 months on £275.

4) For 3 months contract, do they usually get renewed? i don't see anyone could produce anything useful in that kind of time.

It depends on the kind of work: and when you go to meet the client it is usually immediately obvious how much work is actually required. Initial contract lengths rarely have anything to do with that. Lots of companies just have a policy of making initial contracts 3 months long, or can only grab so much budget at a time. Personally, initial contract duration is the last thing I look at when deciding which contracts to chase.

[Notascooby]

Just to counter the doom and gloom. If you feel you've a reasonable skill set there's a market for the role and this is generally easy to see if in your permie job you're surrounded by other contractors, then I say go for it.

I had no warchest and a 3 month contract but was so cheesed off with HR that I jumped. I'm now on my second contract, 8 months at first and here hopefully to July.

Yes there's a worry about what's round the corner but after 13 months of contracting I've now got more reserve than I've every had and I'm surrounded by guys who were made redundant from the same company I jumped from, so there's not much less security IMHO.

Consider your location, your skills and job type. e.g. Architect, finance in London - you're laughing.

[DaveB]

Hi there,

I am new to contracting and trying to get my 1st contract at the moment. I have a few questions which I hope you could help me with:

1) Does a min 6 months contract really mean they will hire you for at least 6 months?

2) I have a very secure permie job at the moment and feeling that I need at least 6 months contract to make it worth the move, am I correct to assume a 6 months contract is safe enough?

3) I have seen several 3 months contract on offer, but I don't see the point of having them unless I am already on a contract. I don't really want to have the 3 months contract and then back on the bench for another 6 months having come out of a secure permie job.

4) For 3 months contract, do they usually get renewed? i don't see anyone could produce anything useful in that kind of time.


Kevin

What you dont say is why you want to go contracting. If it's purely for the money then think very very carefully. £400 a day may look great as a rate but if you only work 6 months in the year it's not so good.

I originally went into contracting because if was fed up with the HR bulltulip that goes with being a permie. As it turns out I hit a 6 month dry spell after 4 years and ended up permie again for the next two trying to ride out the recession. In the end it got me anyway as I was made redundant and now I'm back in contracting again by default.

I got lucky when I started, my first 3 month gig was willing to wait for my permie notice and turned into 2 years, and from there I went straight into another contract that ran on for a year that.

I now have a war chest that will keep me going, with mortgage and kids, for a year if I am carefull. In the current climate I'd say that was the bare minimum.

[TheFaQQer]

1) Does a min 6 months contract really mean they will hire you for at least 6 months?

No - it means that they think they might need you for that length of time, less or more.

2) I have a very secure permie job at the moment and feeling that I need at least 6 months contract to make it worth the move, am I correct to assume a 6 months contract is safe enough?

It's irrelevant. If you can't afford to take the risk, then don't take the risk.

3) I have seen several 3 months contract on offer, but I don't see the point of having them unless I am already on a contract. I don't really want to have the 3 months contract and then back on the bench for another 6 months having come out of a secure permie job.

If you don't like it, don't take it. But you could well be waiting a long time for a contract if this is your criteria.

4) For 3 months contract, do they usually get renewed? i don't see anyone could produce anything useful in that kind of time.

Depends on the contract and the requirements. Some might get extended - some clients will use a three month gig to get to know you and then decide whether to keep you or not (e.g. last year, I was offered 3 months. Between interview and offer, changed the 4 months - that took an hour to get the extension. Turned into 11 months in total before I left to do something else). Some contracts will be less than 3 months - I did a four week "troubleshooting" gig a while back, where the remit was to come in, fix the problems, then **** off. Best contract I've done so far.

--

Sounds to me like you're not confident that you can survive out there, if you are worried that you need 6 month gigs to keep you going. These are more rare these days, as clients have to jump through more hoops to justify the expense. If you take a 12 month gig, and they terminate with immediate effect on day 2, what are you then going to do?

There are a number of experienced contractors on here that have had / are experiencing long bench times - I had seven months off a couple of years back. Planned on two months, and then couldn't get anything that was of interest. RichardCranium was on benefits during his downturn. If you aren't prepared to face the potential risk, then stay where you are.

[northernladuk]

3 month contracts are the norm rather than the exception these days.

And a 6 month contract is only as long as the notice period.

Which is meaningless if they want it to be but thats another discussion and not one to confuse the OP with.

[Sockpuppet]

Thanks for the info guys. I do have a bit of a reserve build up over the years and I could afford not to have a job for 3-4 months even now with kids/wife/mortgage

Is termination before contract term common?

I've had one terminated in 5 years of being a contractor. I'd be honest to say that 3-4months warchest doesn't cut it in todays market. You need to be able to last at least 6 months without work as a minimum and closer to a year. If this was 3 years ago I'd tell you to jump for it but now there isn't much work around and you could be left on the bench for a while.

Being made redundant and finding it hard is one thing bringing this on yourself by leaving a secure permie job is another. I'd give it a year or two until the market is better. Probably not what you wanted to hear but probably is best advice.

[kevinlam]

Thanks for the info guys. I do have a bit of a reserve build up over the years and I could afford not to have a job for 3-4 months even now with kids/wife/mortgage

Is termination before contract term common?

[Scrag Meister]

3 month contracts are the norm rather than the exception these days.

And a 6 month contract is only as long as the notice period.

Back in November I had a "6" month extension at then clientco, great me thinks.

1 month later I get terminated because of a change in strategy. Luckily I got to work my notice, 1 month.

But as Cojak says, only as long as your notice period, and not always that in some cases.

[Jaws]

My contract was originally 2 months and I've been here 3 years so far .

You can probably get a feel for how long it might last at the interview when you're asking about the project & what it is they need.

[cojak]

3 month contracts are the norm rather than the exception these days.

And a 6 month contract is only as long as the notice period.

[Robinho]

It's not really risky unless you blow all the money you earn as soon as you get it. If i had to i could live for an entire year on about 6 weeks of a typical contract rate.

Jobs are far more volatile yes but you'll be earning a premium for that. As long as you manage your finances correctly there's little risk at all IMO. Of course a lot of that is going to depend on whether you have a wife/kids/mortgage etc or not and of course, if you're any good at your job.

[TykeMerc]

If you want security then contracting is absolutely the wrong way to go, it's inherently risky by its very nature.

Contract length and notice periods are pretty much meaningless. If the client loses the budget, changes their mind, changes direction, has permies become available or just decides that your face doesn't fit they can get rid of you instantly.

Even if the client is expecting to extend you and says so on multiple occasions that can change at any point (no matter how much you're needed) it's just happened to me, it's part of the game.

From your post my advice is an emphatic stay in a permie role until your mindset or circumstances change so the risks are acceptable.

[stek]

1. Nope - you can be canned anytime unless the contract is water tight in your favour, which it never is.

2. Never really safe, but I'd go for it, never had a contract curtailed - but will they wait for your notice?

3. If your good you either get extended or get back in in the future. Contracting is a state of mind, a roller coaster ride of a novel, ups and downs, if it worries you stay in permiedom.

4. You are expected to 'hit the ground running' don't expect any learning curve, you need to be productive from day one till the last day. Much like a plasterer, three months to do the plastering it's finished, you go...

[kevinlam]

Hi there,

I am new to contracting and trying to get my 1st contract at the moment. I have a few questions which I hope you could help me with:

1) Does a min 6 months contract really mean they will hire you for at least 6 months?

2) I have a very secure permie job at the moment and feeling that I need at least 6 months contract to make it worth the move, am I correct to assume a 6 months contract is safe enough?

3) I have seen several 3 months contract on offer, but I don't see the point of having them unless I am already on a contract. I don't really want to have the 3 months contract and then back on the bench for another 6 months having come out of a secure permie job.

4) For 3 months contract, do they usually get renewed? i don't see anyone could produce anything useful in that kind of time.


Kevin