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Letting go of existing, good client

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    Letting go of existing, good client

    I have taken up a new client and I still have a support contract with one my previous clients.
    this is basically hosting and a number of free support days, if they need.
    So far they have been using up their quota and even buying extra days above that.
    The current support contract is until the end of the year and in all likelyhood they would like to extend for another year.
    The work with the new client is on a better rate and there is more and more work so it may be that by the end of the year I will struggle to juggle the two pieces of work, which are pretty much unrelated.
    I have a few options:
    - keep the contract running as is and risk alienating the good client, when I am unable to respond/resolve matters in a timely manner
    - increase the rate - they may be unhappy about it and we're still talking something like 10 days a year so not a world of difference
    - cancel the support contract altogether and focus on the new work - while in theory it's better to diversify the revenue streams, the work with the new client is quite promising and like I mentioned better rate and better terms and more interesting project and future proof etc, so worth focusing on that.

    What are your thoughts?

    #2
    - keep the contract running as is and risk alienating the good client - Could this not open you up to legal action in a worst case if you are in breach or cause them loss?
    - increase the rate - but you can't meet current commitments. How would this help? By putting him off using you as much but you get same money for less work?
    - cancel the support contract altogether and focus on the new work - It would be a shame to do this if you have something good going but there is a limit where this might be an option.

    Is there no way you can sell this work to a contractor/company that can fulfil it for a percentage of the contract value? You get something for doing nothing and keeping the client happy still?
    Any way you can train up a sub on a paid per hour basis?
    Any other out of the box options using someone else to support you?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #3
      Originally posted by yasockie View Post
      I have taken up a new client and I still have a support contract with one my previous clients.
      this is basically hosting and a number of free support days, if they need.
      So far they have been using up their quota and even buying extra days above that.
      The current support contract is until the end of the year and in all likelyhood they would like to extend for another year.
      The work with the new client is on a better rate and there is more and more work so it may be that by the end of the year I will struggle to juggle the two pieces of work, which are pretty much unrelated.
      I have a few options:
      - keep the contract running as is and risk alienating the good client, when I am unable to respond/resolve matters in a timely manner
      - increase the rate - they may be unhappy about it and we're still talking something like 10 days a year so not a world of difference
      - cancel the support contract altogether and focus on the new work - while in theory it's better to diversify the revenue streams, the work with the new client is quite promising and like I mentioned better rate and better terms and more interesting project and future proof etc, so worth focusing on that.

      What are your thoughts?
      Option D - get in someone you trust to help out with the extra work - if you can handle part of the original gig but not all of it, someone else may appreciate an extra few dollars a week and the IR35 benefits of two end clients.
      The greatest trick the devil ever pulled was convincing the world that he didn't exist

      Comment


        #4
        Originally posted by LondonManc View Post
        Option D - get in someone you trust to help out with the extra work - if you can handle part of the original gig but not all of it, someone else may appreciate an extra few dollars a week and the IR35 benefits of two end clients.
        Like I said we're talking 10 days a year here, and IR35 contracts are reviewed independently as far as I know, but something I have been pondering too - even if I don't make any profit on subcontracting, I still keep that flexibility of having two clients, should something change with client B.
        I've got just over 3 months to find and train a suitable sub. How to go about, stackoverflow, twitter, here?

        Comment


          #5
          Originally posted by northernladuk View Post
          - keep the contract running as is and risk alienating the good client - Could this not open you up to legal action in a worst case if you are in breach or cause them loss?
          - increase the rate - but you can't meet current commitments. How would this help? By putting him off using you as much but you get same money for less work?
          - cancel the support contract altogether and focus on the new work - It would be a shame to do this if you have something good going but there is a limit where this might be an option.

          Is there no way you can sell this work to a contractor/company that can fulfil it for a percentage of the contract value? You get something for doing nothing and keeping the client happy still?
          Any way you can train up a sub on a paid per hour basis?
          Any other out of the box options using someone else to support you?
          This was my first thought, find someone that you can subcontract to when youre too busy for 90% of what you'll get paid... When youre not too busy you do it and get 100% when youre too busy Developer X steps in and you get 10% for relaying communications between them and the client.

          Comment


            #6
            You really can't manage 10 days a year on a second contract?

            Are you allergic to working on Saturdays or something? That's less than one Saturday per month.

            You know what would be great for IR35?

            "I can't make it in tomorrow, something's come up. If you want, I can work from home on Saturday, or come in early and leave late all week next week." And then you go work your other contract. And you document it all, and if HMRC come calling you say, "Obviously, I wasn't an employee, I told them (not asked) that I couldn't come in on 22 September. I didn't give a reason, I'm not an employee, and I wasn't paid for that day. But another client needed my help."

            Ten days a year. I'm putting in over 60 hours a week right now to keep my clients happy. I WFH, so it's tolerable. I'll take a nice holiday soon.

            Comment


              #7
              +1 for subby.

              Comment

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