Reply to: Contracts Being Cut Short By The Client :-(

[AnthonyQuinn]

WNLS

The cost of contract staff to a company is the same as permie staff (Tax, nat ins, holidays, insurance, sick pay, pension, health plan which contractors pay themselves) except that you don't have the future costs of their employment to take into account.

Companies aren't paying a premium for contract staff, you pay for a plumber to fix a leak, because he can do it quickly and you don't need him after that, you don't take on an apprentice for a couple of years unless you are expecting lots of leaks in the future.

Candidate for the crappest metaphor 2013.

Exactly my point, the plumber is skilled and has a fixed task to do. the problem is if your pipes explode every month on random days. You shouldnt call a skilled plumber to park himself in your premises for the whole month. you should upskill someone in your household (spending what is needed) so that they can do their other work and be available for this contingency.

This is where some clients fail miserably. I find contractors in the same client for over 10 years because only they know how to run the batch on the 29th of every month, only they know how to deploy the latest release once a quarter, etc etc.

Danger signs are when only two contractors know how to change some of the inner pipes in your system. Their expertise should be what they have gathered OUTSIDE the client organization, not INSIDE.

[psychocandy]

I am not sure that is true. The actual cost of a permie to a company is not his wage/benefits alone. Many years ago when budgeting for projects we had to use a figure that was roughly twice their pay-scale. This made them comparable to contractors. The pay per hour figure does indeed make a permie look cheaper but that isn't the whole picture.

And of course, a lot of companies like to keep budgets separately. If they can say they're only paying for 1000 permies then it keeps them happy sometimes even if they've got 500 contractors on top.

And, of course, if you're in contract for a while it gets to the point where possibly client can't replace you with a permie even if they want to because the skills are not there. So they have little choice but to keep the contractor going.

[northernladuk]

Waiting for AQ to ask me if I am an HR expert or an IT contractor now.....

[Antman]

WNLS

The cost of contract staff to a company is the same as permie staff (Tax, nat ins, holidays, insurance, sick pay, pension, health plan which contractors pay themselves) except that you don't have the future costs of their employment to take into account.

Companies aren't paying a premium for contract staff, you pay for a plumber to fix a leak, because he can do it quickly and you don't need him after that, you don't take on an apprentice for a couple of years unless you are expecting lots of leaks in the future.

Candidate for the crappest metaphor 2013.

[northernladuk]

permies ARE cheaper. except when a genuine skilled contractor is used for a fixed term to provide fixed deliverables. But such contractors are a minority. Many contractors do tedious repetitive jobs which a monkey could do, let alone a permie.

I am not sure that is true. The actual cost of a permie to a company is not his wage/benefits alone. Many years ago when budgeting for projects we had to use a figure that was roughly twice their pay-scale. This made them comparable to contractors. The pay per hour figure does indeed make a permie look cheaper but that isn't the whole picture.

[AnthonyQuinn]

Which bit of "Temporary expert resource" haven't you quite worked out yet? Or "Recession"...?

Times are tight, companies are being very careful with expenditure and still cling to the fond belief that a permie is cheaper than a contractor. One day they'll work it out. until they do, early finishes and non-renwewals will become more commonplace.

permies ARE cheaper. except when a genuine skilled contractor is used for a fixed term to provide fixed deliverables. But such contractors are a minority. Many contractors do tedious repetitive jobs which a monkey could do, let alone a permie.

[northernladuk]

It has happened a couple of times. I tend to try and get through my work at lightening speed which of course then changes project deadlines which inadvertently for me reduces their spend.

You sound like a project managers nightmare.... unless you are talking rubbish of course.

[SajStars]

It has happened a couple of times. I tend to try and get through my work at lightening speed which of course then changes project deadlines which inadvertently for me reduces their spend.

However i just dont want to be in the slow lane! I much prefer to try and get out of each contract the desirables and then move on to try and find more interesting and challenging work.

[curtis]

Indeed if you want the extension then it must be frustrating. Given the choice though for me unless a holiday is looming very close I would pretty much always like to move on if I get the chance.

So I like to look so I don't have to take the extension if offered if ideally I don't want too. I know I don't have to anyhow but if there is nothing really bad about the job then feel to keep myself working should take it.

[psychocandy]

I have had 1 contract cut short by a few months, it was a bit of a shock when I actually got told even though I knew there was a chance it was coming and for the half hour after when I got back to my desk I was like 'Sh1t!' but then just got my CV up on my system fired it back out and got on with it and that was that.

I must be one of a minority that actually likes clients to take it to the last minute to decide to renew. This is because I get bored very quickly in jobs and like the chance to try and find something else before I have to make a decision on the extension if it gets offered.

But its annoying to have to go through the rigmarole of looking on jobserve etc applying for stuff just in case you dont get extended. Of course, if you dont mind going somewhere else not an issue....

I'd rather have a longer contract that gets canned with two weeks notice than the odd one month or three months where they take it to the wire every time. This way potentially you get an hours notice!

[curtis]

I have had 1 contract cut short by a few months, it was a bit of a shock when I actually got told even though I knew there was a chance it was coming and for the half hour after when I got back to my desk I was like 'Sh1t!' but then just got my CV up on my system fired it back out and got on with it and that was that.

I must be one of a minority that actually likes clients to take it to the last minute to decide to renew. This is because I get bored very quickly in jobs and like the chance to try and find something else before I have to make a decision on the extension if it gets offered.

[eek]

You know what the answer is to all your current troubles though don't you

That would require him getting off his backside and being proactive. You don't really expect him to do that do you?

[FiveTimes]

You know what the answer is to all your current troubles though don't you

What could that be

You must spread some Reputation around before giving it to northernladuk again.

[psychocandy]

You know what the answer is to all your current troubles though don't you

Come and work as your personal slave? ;-)

[northernladuk]

Fortnight! Bloody hell I wish......

Day before if I'm lucky. Twice now I've had to take a day off the next day because they aint sorted it out.

Trouble is they think its ok to phone me and tell me its all being sorted and thats it. It isn't. I insist on, at least, an email from the agency.

I think the bottom line with my current client is that they don't really want to pay for a contractor. But it gets to day before and they aint got anyone else....

You know what the answer is to all your current troubles though don't you