Reply to: new to contracting, what daily rate should i go for

[geoffreywhereveryoumaybe]

50k is a decent wedge - do you really want to give that up?
You won't have an employer
Yes, contracts do get terminated early - all mine have been - which is why I'm posting from under a bridge at Spaghetti Junction.

Look on the bright side, at least you're not posting from a bridge over Spaghetti Junction

[EternalOptimist]

It is always useful to get off on the right footing with your agent. Firstly if he offers you a rate accept it and dont forget to tell him of any interviews you have and any contacts that may be helpful to him/her. This will ensure a smooth and easy (albeit poor) time for yourself

then grease yer bum-hole , and touch yer toes

[DodgyAgent]

Hi

Im currently on 50K ( as of april) and thinking of going contracting, if I go contracting Ideally i would like to take home at least 1k extra every month (thats after tax). on that basis what daily/ hourly rate should i seek ?

the other quesiton is todo with job security, lets say i sign a 6 month contract. is it possible for the employer to terminate the contract early? and does it happen very often ?

im new to contracting and have limited savings. I can survive up to 3-4 month only, it be a disaster if I resign from my permie role and also end up having my first contract terminated early.

what are the measures I can take to ensure my first contract goes smoothly and doesnt get terminated before agreed end date?

I guess one option would be to only consider long contracts for now, ideally 6+ month rolling contracts?
any other advice?

Thanks

It is always useful to get off on the right footing with your agent. Firstly if he offers you a rate accept it and dont forget to tell him of any interviews you have and any contacts that may be helpful to him/her. This will ensure a smooth and easy (albeit poor) time for yourself

[psychocandy]

Contractor Market Rates - IT Contract Hourly Rates - what does the panel think about these figures?

There are none listed for over £500 pd, granted these are the top 10 in each category.

Also, there is quite a discrepancy between daily and hourly rates. Average hourly rate for a PM is £30 ph, but the daily rate average is £450 pd - or a 15 hour day (ha!).

So really there are 2 markets (at least) - hourly & daily. Daily, imho, is favoured by bigger institutions looking for experienced guys in high value skillsets, so the usual calculation of yearly salary / 1000 can apply.

Although the majority of posters on CUK seem to fit this category, there is a big market of simple hourly rate 'resource filling roles'. I left a £60k job some years ago, got back into coding, and am not ashamed to say I have (only!) got between £35 & £40 per hour. That is simply the market rate for my skillset, I'm one of the last guys around still contracting with it.

And I'm happy as we're still better off financially than when I was perm; but I have not been benched and not had many holidays. And it's been a bit seat of the pants stuff, a couple of months on the bench and we're fecked, until recently.

The key to not being benched in a tough market is getting extensions; this reflects a basic business principle which is the key to success is not getting sales but getting repeat sales.

Windows - £15-£17 per hour. Every man and his bob.

[Old Hack]

I'm direct this time (

I am sure it's grand, and it is something to be very aware of. I wasn't when I was green, and paid.

[SimonMac]

I always refuse this, once i have been offered a gig. They've always backed down.

I once got diddled by a company going down the pan with my 8 weeks money - first 4 weeks money, then working whilst I waited the 30 day invoicing. Ever since, I have refused to do it. I think once you've got the gig, the agency will acquiesce.

I'm direct this time (

[Old Hack]

You also need to think worse case, monthly billing with 30 day payment terms are becoming the norm now, so even if you secure a contract can you go another two months before YOUR company gets its hand on some cash never mind you

I always refuse this, once i have been offered a gig. They've always backed down.

I once got diddled by a company going down the pan with my 8 weeks money - first 4 weeks money, then working whilst I waited the 30 day invoicing. Ever since, I have refused to do it. I think once you've got the gig, the agency will acquiesce.

[SimonMac]

You also need to think worse case, monthly billing with 30 day payment terms are becoming the norm now, so even if you secure a contract can you go another two months before YOUR company gets its hand on some cash never mind you

[TheFaQQer]

Would you take a £50k permie job if offered?

If it was near home, doing something that I was interested in, and didn't involve travel then I would consider it, yes.

The main problem I have when I see permie jobs isn't about the rate, it's the travelling involved and the holidays on offer. If I'm going to be travelling, then I may as well keep doing what I'm doing. And very few companies are prepared to offer the holidays that I want - although Oracle used to give me 35 days a year plus the bank holidays.

[dynamicsaxcontractor]

If you think that contracting is a path to easy living and an increase in earnings, then I think you really do need to do some research before making the leap.

You need the right mindset, if you have that you wouldnt have to ask these questions - you just jump. Its not easy, its really hard work at times but I could never go back to work as a perm again - ok offer me a salary of £500K or more and I consider it....

[doomage]

There's some good advice in this thread.

Work out what your costs are going to be.

Work out what you need to live on.

Work out what you can sell yourself for - bear in mind that certain market areas are flooded with cheap offshore resource. Some markets are flooded with cheap resource where people have been made redundant and jumped into the first contract which takes their fancy. Some agencies will be wary because you have no contracting experience. Some agencies will deliberately fleece you because you have no contracting experience.

What kind of notice period are you on? You'd be lucky to find someone in this climate who will wait for a long notice period.

I would be wary of only having 3-4 months to live on, to be honest - I had seven months without a contract a few years back. Over the past five complete years that I've kept records, I've worked 134 days, 155 days, 185 days, 120 days, 125 days and 204 days. In the six months of this trading year, I've only worked 84 days - and I've been in contract for the whole of that time, but the client has had some breaks.

It's not easy out there. Personally, I think you'd be mad to move from a 50k permie job, but who knows?

If you think that contracting is a path to easy living and an increase in earnings, then I think you really do need to do some research before making the leap.

Would you take a £50k permie job if offered?

[TheFaQQer]

There's some good advice in this thread.

Work out what your costs are going to be.

Work out what you need to live on.

Work out what you can sell yourself for - bear in mind that certain market areas are flooded with cheap offshore resource. Some markets are flooded with cheap resource where people have been made redundant and jumped into the first contract which takes their fancy. Some agencies will be wary because you have no contracting experience. Some agencies will deliberately fleece you because you have no contracting experience.

What kind of notice period are you on? You'd be lucky to find someone in this climate who will wait for a long notice period.

I would be wary of only having 3-4 months to live on, to be honest - I had seven months without a contract a few years back. Over the past five complete years that I've kept records, I've worked 134 days, 155 days, 185 days, 120 days, 125 days and 204 days. In the six months of this trading year, I've only worked 84 days - and I've been in contract for the whole of that time, but the client has had some breaks.

It's not easy out there. Personally, I think you'd be mad to move from a 50k permie job, but who knows?

If you think that contracting is a path to easy living and an increase in earnings, then I think you really do need to do some research before making the leap.

[SupremeSpod]

What are you on about? They are all optional, but only a complete clown wouldn't have something in place for all of them. Plus the OP is not a contractor, and likely has no idea of the overheads involved, unlike the enlightened superheroes of General.

Stick to mud pies, leave business to the grown ups.

http://forums.contractoruk.com/gener...esponse-5.html

How's that for a "mud pie"?

[d000hg]

WTF!

£50k <> £500 p/d. He needs to be aiming at £700 p/d minimum to cover for bench time.

Don't give crap advice.

Take your own advice. £700, what a dummy.

[BolshieBastard]

Unless you are particularly confident of your skillset, abilities and industry, I would not consider leaving a permie job at this time - unless of course your job itself is at risk anyway.

£50k is a good salary in today's world. You'll be hard pressed to find a contract that will live up to your expectations; just read the posts on these forums about the Indians waltzing in and decimating the industry with their low rates and even lower quality.

I'm seeing contracts advertised in London at < £300/day, whereas a couple of years ago it would have been more like £500/day.

Yes, it's a shame, but I really feel that contracting is dead in this country. We have had absolutely no support from successive governments, so we are being beaten down on taxation and work is being offshored in ever increasing volumes. If you're already in the game then it's OK because you can probably stretch it out for a couple of years more - but as a fresher I would recommend you stay out.

Yes, absolutely spot on! Im hanging on for another 4 years tops if I can then Im bailing. Im expecting to work no more than 36 weeks in any 52, the market is that tulipe.

Im keeping my rate high for my location but I know for a fact agents are submitting people for new roles at a rate £75 to £100 a day below mine.