newbie - What hours are expected on a 'day rate' contract?

[ratewhore]

So you can see then that it is different for everybody. I hardly ever do a fixed number of hours per day and, if the client insisted on 7.5 hrs bum on seat, I wouldn't want to work there.

Interestingly enough, one of the judges points in the ECR Consulting IR35 case was this:

It is unusual that VDS were content to accept invoices showing the work for the week as being 37.5 hours when it is clear from Miss Richardson’s internal records that the hours she worked varied from week to week. That is consistent with a contract at an agreed price, which leaves the contractor to deliver the same as best he or she might.

I'll leave you to draw your own conclusions...

[StarApple]

Finance Contracting

In the financial world of contracting one usually works 5 days a week on 37.5 hours per week on a nice day rate.

However one also gets a target to do a certain number of cases per day or per week. If one struggles to do the cases you have to stay longer on your own time as it will not get paid. If the target or overproduction is not met then the contractor is out....

Best are the jobs were the daily target has been met by lunch time, can take an hours lunch and the rest of the time is spent creating "overtime (extra cases equals extra days)".

So some people bill more than the 5 days a week or only work 4 days a week but overproduced enough to bill for 5 days to meet their targets.

Then there are the greedy pants like me at times, who get to work real early like 7am, take lunch at the desk and work through up to 8 or 9pm and then bill for 10 or 12 days in 5. This is only if they allow it and enough work is there for everyone to do this. Also takes a toll on the brain so only go this extreme once a month or so. Usually I try to bill 8 in 5 without powering myself out.

[SueEllen]

Hi all,

Thanks for the info and quick responses.

Another question I have which is a little off-topic for the original post but, in general, what percentage of contracts/contractors fall within IR35?

No one knows. Some contractors decide they do fall under IR35 so pay up. Others work under umbrella companies so IR35 isn't relevant to them.

For those who work under a limited company it's a case of:
1. Getting your contracts reviewed by a review service or a lawyer for the main pointers.
2. Refusing to act like an employee of the client. For example this means instead of asking for time off and getting it approved you work out how busy the project is going to be, time your time off to coincide with periods that aren't busy and then inform the client before hand you are not available on certain dates.

Some clients like a clear distinction between contractors and their employees. Others don't so need some gentle guidance.

[chiefsmeeler]

Hi all,

Thanks for the info and quick responses.

Another question I have which is a little off-topic for the original post but, in general, what percentage of contracts/contractors fall within IR35?

I have done a fair bit of reading and understand what's required to be outside of IR35, but I just wondered how this was reflected in the real world.

Cheers,


Wayne

[doodab]

I would say 7.5-8 per day is a standard day. Some clients will be a bit flexible and accept 37.5 or 40 hrs over the week, others will expect you to work at least the minimum number of hours per day and longer hours occasionally. The first kind are generally nicer to work for.

[Fred Bloggs]

I have only had one day rate job but I worked 6 to 8 hours on a Monday (weekly commuting) 8 to 10 hours Tue, Wed, Thur and 4 hours on a Friday. I get in work at 6.30am so I'm on my way home at 10.30am. Feels good to be claiming a full day rate for Fridays!

[northernladuk]

You will be working 'full time' as others have said, so 5 days a week at whatever hours. You can in many cases get some flaxibility from the customer on exact times. It is better not to have the extact times in the contract as it is an IR35 pointer and negotiate. They can be flexible on start/end times as people can travel quite a long way and in some cases you can put more hours in for 4 days and take a shorter day on Friday or something. Do some good work first before asking so it doesn't look like your are slacking from the off.

Whether you clock watch and do exactly 8 hours or see a 'profressional day' as flexible depending on the amount of time required is up to you. Some clients will take the piss and expect longer hours so just see how it is when you get there.

If you are starting a LTD read up on IR35 and client direct. YOu mentioned going for an interview for permie position at this client. If it is the same position you could be in danger of him treating you like a permie which puts you inside IR35. Get your contract reviewed by someone like QDOS.

[Project Monkey]

In all likelyhood it will be mon-fri, but there's always the risk that the project will get cancelled or delayed and if the client doesn't have any other work you could be out within a week. Hours are just like permie work but without overtime, expect to do 8 hrs/day minimum, and whatever it takes at busy times.

[jmo21]

In most typical IT contracts:
- they will have set hours (all my contracts have been 37.5 hrs/week).
- they are 5 days a week (all of mine have been)
- if you can get the agent to pay you weekly, well done! many don't these days (all of my contracts have been monthly).

There will always be exceptions to these, depends on the client.

[chiefsmeeler]

Hi all,

I'm currently permie and never really considered going contracting because of my financial situation.

However, I was contacted by agent that I have dealt with in the past regarding a 3 month contract role for a company I previously interviewed with for a permie role.

This started me thinking about the in's and out's of contracting and the pro's and con's etc and I cam up with some pretty noob questions which I'd never considered before.

If you have a 3month contract (or more) and you have a 'day rate', how does this translate into the number of hours expected to constitute a 'day' and also are you guaranteed 5 days a week or is it simply a case of the client saying that they'll contract you for 3 months but that may not actually mean 3 full months of mon-fri work (like a permie).

I have done a fair bit of reading so far but haven't seen this asked/answered anywhere - maybe because it's a daft question

Another reason I was considering it was because the agency have said that they can facilitate a weekly invoicing rather than monthly after I explained that I wasn't in a position to wait for a long period to be paid - is this something that is usually offered or should I be a littler weary of this?

Just to be clear, I don't think I will be taking this offer as tbh I have a pretty well-paid permie position and my current financial situation and responsibilities isn't right for the ups and downs of contracting...I would like to know a bit more about the above though in case I am ever made redundant in which case my redundancy package cold allow me the time to look into contracting more seriously.

Cheers,


Wayne