Dilemma - contract drying up - how to handle.

[monoceros]

Hi,

My first post so please be gentle...


I am on my first contract which is basically acting as a caretaker to several projects (end customers) that my clients are allowing to wither (because my clients were bought by a larger company and their technology incorporated in to a different stack and these end customers are not core business).

I have to timesheet all my time so that my client can bill the end customers and until recently (and for the last 16 months) I have been able to (easily) account for a full 40 hours per week that my client could then bill.

Now the withering is starting to really happen and its now going to be a lot harder to find that number of billable hours for my client (indeed it may be hard to account for even 20 hours some weeks).

The work is mainly architecture and development for end client new functionality or ongoing support.

I am the only person with knowledge of the workings of the code (its not terribly hard but there would be a learning curve as its evolved though many different hands and styles and there are many "quirks" in there).

Though there is no clause in my contract tying my hours to billable hours: the client has a clear rule that all contractors must be profitable.

So the dilemma... how do I handle this?

- Do I volunteer to drop my contract hours to say 3 days per week (the minimum I need to pay myself) in the hope that this keeps the contract going and use the other time for a 2nd contract (how do I find a 2 day a week contract?) or invest it learning new skills or just kick back and enjoy the summer.
- Do I sit it out and see what happens. My contract is for 40 days per week (though with only 5 days notice). Without me they will have considerable support issues and their reducing income stream would stop pretty much immediately. So they would probably have to backfill.

The first option appeals because it somewhat delays the termination (its quite a nice contract, I work from home etc), the second protects my short term income but I suspect it will cause the termination to occur sooner.

[northernladuk]

Wait for them to drop the hours, give notice and go find another contract.

Or

Wait till they terminate you and then go find another contract

Or

Negotiate whatever number if days you are happy with and see if they are happy and carry on.

You chose contracting to be in charge of your own destiny so need to start doing that. If you are afraid of termination then you are not cut out for contracting.

[TheFaQQer]

- Do I volunteer to drop my contract hours to say 3 days per week (the minimum I need to pay myself) in the hope that this keeps the contract going and use the other time for a 2nd contract (how do I find a 2 day a week contract?) or invest it learning new skills or just kick back and enjoy the summer.

If you want to do that, do that.

- Do I sit it out and see what happens.

If you want to do that, do that.

My contract is for 40 days per week

Sound like it could be very profitable if you haven't got much work to do and still bill 40 days a week.

[SimonMac]

Is it me or has anyone else read this as a for being a disguised employee? Could you go the other way and use the MOO clause in your contract to drop down to 3/4 days a week if the work is not there

[northernladuk]

Is it me or has anyone else read this as a for being a disguised employee? Could you go the other way and use the MOO clause in your contract to drop down to 3/4 days a week if the work is not there

That's exactly how I read it first time as well TBH. MoO isn't dropping down to 3/4 days IMO. You are talking about a change in contractual arrangements. MoO would be the OP expecting work or client expecting him to take work once this gig is done.

[TheFaQQer]

That's exactly how I read it first time as well TBH. MoO isn't dropping down to 3/4 days IMO. You are talking about a change in contractual arrangements. MoO would be the OP expecting work or client expecting him to take work once this gig is done.

In this case, there isn't enough work, so the best thing would be to suggest cutting back on the hours billed. Terminate the contract and setup a new one which allows for this flexibility - would a permanent employee be able to do that? Very unlikely, so a good thing with regard to IR35.

[northernladuk]

In this case, there isn't enough work, so the best thing would be to suggest cutting back on the hours billed. Terminate the contract and setup a new one which allows for this flexibility - would a permanent employee be able to do that? Very unlikely, so a good thing with regard to IR35.

Very true but I wonder if rocking the boat when the work is drying up isn't going to shoot the OP in the foot. It may give them reason to re-asses the whole piece of work. Only the OP will know that though.