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Working hours

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    Working hours

    I know this has been discussed on here before, but I was just drawing up a new contract schedule with my current client and after some confusion around working hours when I started on the previous project here I wanted to try and make the concept of a "working day" more explicit in the contract.

    In short, I generally work from home and only work on-site around 20% of the time. I charge a daily rate which as far as I'm concerned is billable for any "professional working day". My view is that I control my working hours (although will try to align with the client especially if I'm on-site) and will tend to average out at around 8 hours a day but as the hours are down to me this could be 6 hours of intense coding or a long day of meetings (to me its about delivering value, not hours).

    What I tend to do in practice if I'm unable to to work a full day due to my own commitments, is pro-rata in quarter or half day increments. But if a client asked me to come in to do a specific task and it only took me half a day, I would still bill for a full day.

    If I work on site then any time I spend on-site - including lunch - is part of my working day. I don't generally include travel time unless I've been asked to come in in the middle of the day (e.g. to attend a meeting). When I started on my previous project I was asked to input my time into the client's own time tracking system (not for billing purposes but they use it for reporting and billing their own clients). As they required all time blocks to be allocated to something I asked how I should enter lunch and was told "lunch isn't part of the billable day". Well - it is to me. ClientCo didn't put up much of a fight once I pointed out that my contract stated I bill per day, not per hour, but I made a mental note to make this clearer in my contract.

    With that in mind, I've amended my contract to specify "per working day" and added the additional clauses and wondered if anyone had any feedback?

    4.1 The Consultancy will invoice monthly for the Services on a ‘time and materials’ basis at the rate of £xxx plus VAT*per working day, together with any materials or previously agreed expenses at cost plus VAT.

    4.2 A working day is not defined as a fixed number of hours but will usually be expected to average out at 8 hours over the course of a project. The Consultancy reserves the right to invoice for a full day for any day spent working on the project however where the Consultancy is unable to provide its services for a minimum of 6 hours it will, at its discretion, invoice on a pro-rata basis for hours worked.

    4.6 The Consultancy will be responsible for managing its own working hours as it sees fit however it will always try to ensure its working hours are broadly in line with that of the rest of the project team.
    Does this seem reasonable? The way I see it, it makes it clear that I'm going to bill for a full day regardless of the exact number of hours, or when I was at lunch, but I'm equally not going to take the piss and put in half a day every day and bill a full day for it (my contracts wouldn't last very long if I did this anyway). It also makes the "£x per day" that I previously had less ambiguous I think.

    #2
    This comes down to Day Rate v Hourly Rate, But If your working from home how will they know what hours you do?

    Comment


      #3
      Originally posted by CloudWalker View Post
      This comes down to Day Rate v Hourly Rate, But If your working from home how will they know what hours you do?
      They don't so this is more to do with when I am on-site.

      In this particular case it's a short extension for 3 days on a different project and I'm on-site for all of them but generally I prefer my contract to not be ambiguous. I want to avoid disputes in the future.

      edit: just realised this is probably better in business/contracts if mods want to move it.
      Last edited by TheCyclingProgrammer; 26 August 2015, 11:03.

      Comment


        #4
        Seems reasonable to me. Hourly rate seems cleaner, and you could state that on-site work will be billed at a minimum 8 hours / day -- that's what I do. But that doesn't solve the problem of wanting 6 hours to count as 8 sometimes.

        If your clients don't object, I don't see an issue.

        Comment


          #5
          In my current contract 5 hours, or greater, can be billed as a whole day.
          I let the client know, out of courtesy, when I will be working a "half day" / 5 hours.

          Obviously, not something you do all the time, but, sometimes needs must.

          The "gotcha" in this is, if you do 4 hours you will get a pro rata rate that works out less than half a day.
          I haven't got the exact ratio to hand, but can provide if you decide it is useful to you.
          Last edited by MrMarkyMark; 26 August 2015, 12:35.
          The Chunt of Chunts.

          Comment


            #6
            Some of the language is a little woolly. I would generally approach any contract clause with the hardest language possible and let them push back (I'd also have a legal review, esp. for a contract that hasn't been professional drawn up).

            4.1 This is ambiguous w/r to VAT (does the cost include any applicable VAT, with your VAT then added)? I would identify a "professional working day" here and that you will bill in increments of one PWD.
            4.2 I would remove this altogether. It is up to you to decide what constitutes a PWD for any given task and day. ClientCo will have opportunities to bin you if you're not meeting the contract terms, so a PWD should be at your discretion. There's some woolly language here at present ("will usually be expected", "at its discretion" etc.)
            4.6. I'd sharpen this one up and remove the stuff after "however". For example, "ConsultancyCo shall have complete discretion concerning the hours at which the Services are provided, but will coordinate these hours with ClientCo as necessary. There is no obligation on ClientCo to require the Services on a particular day or on ConsultancyCo to provide the Services on a particular day. For the avoidance of doubt, there is no obligation on ClientCo to make payment for any period in which the Services are not provided".

            Better still, use a contract template.

            Comment


              #7
              Ejamesbrown: I am using the standard IPSE contract with some additions. I already have the MOO clauses covered elsewhere but omitted from my original post. They cover the client not requiring me on any given day, not being obliged to offer me work and me not being obliged to accept new work.

              You're right the VAT on expenses could be made clearer, in practice it doesn't normally come up as I don't regularly recharge expenses.

              I don't want to remove 4.2 - it's the clause I've just added. I'm not happy with simply leaving it as "per professional working day" as that's very wooly and has no accepted definition I'm aware of.

              For this client I have added this to the schedule as we already have a signed MSA in place but going forward I'd like to move some of this into the MSA as it isn't contract specific.

              Comment


                #8
                Originally posted by TheCyclingProgrammer View Post
                Ejamesbrown: I am using the standard IPSE contract with some additions. I already have the MOO clauses covered elsewhere but omitted from my original post. They cover the client not requiring me on any given day, not being obliged to offer me work and me not being obliged to accept new work.

                You're right the VAT on expenses could be made clearer, in practice it doesn't normally come up as I don't regularly recharge expenses.

                I don't want to remove 4.2 - it's the clause I've just added. I'm not happy with simply leaving it as "per professional working day" as that's very wooly and has no accepted definition I'm aware of.

                For this client I have added this to the schedule as we already have a signed MSA in place but going forward I'd like to move some of this into the MSA as it isn't contract specific.
                Not being obliged to offer or accept work (a MoO issue) is different than the terms surrounding working hours/days (a D&C issue).

                What is the concern that you're trying to address? ClientCo can easily bin you if YourCo isn't performing to the contract terms. The point of a professional working day is that it involves professional judgement about what is reasonable on any given day. If the client disagrees, they can enforce that via the resulting failures (e.g. to meet acceptance criteria). If there are no failures (i.e. if your professional judgment is good), happy days.

                I suspect the problem you've identified is more perceived than real. My 2p.

                Comment


                  #9
                  I had one gig where the agent changed the T&C hours to force you to take an Hour lunch as many contractors were just taking 30 minuets lunch and knocking off half an hour early. And they were on a day rate!

                  Comment


                    #10
                    Originally posted by CloudWalker View Post
                    I had one gig where the agent changed the T&C hours to force you to take an Hour lunch as many contractors were just taking 30 minuets lunch and knocking off half an hour early. And they were on a day rate!
                    D&C.

                    The Chunt of Chunts.

                    Comment

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