6m renewal before expiry then notice given. Breach of something?

[PogIng]

Hello,
Please accept my apologies if this question has been asked before, I've trawled the forum and can't obviously see this question previously asked.

My current contract is due to expire within the next 5 weeks, I have been given an extension for the next six months, which I have signed and returned. Most of the clients staff have expressed surprise at the extension. I am surprised by the extension. I was actively looking for other contracts and having been given an extension have turned down a 6 month contract with another company.

Last week the manager stated that she did not expect there to be sufficient work to carry on past 6 weeks and that the contract would be terminated. There is a two week termination clause (on either side) in the contract.

Is this a breach of trust or something? Can anyone offer advice please?

[Support Monkey]

[QUOTE=PogIng;1306958]Is this a breach of trust or something? Can anyone offer advice please?[/QUOTE]

No its just what happens, contracts get canned all the time for whatever reason, yes its annoying they said one thing and then did another they obviously over estimated their requirements, don't waste energy being bitter and burning bridges, just concentrate on getting another contract.

[TykeMerc]

I'm afraid that's contracting in a nutshell for you.

Irrespective of how long a contract/extension you have agreed and signed the simple fact is that as a contractor it can be terminated with little or no notice at any point. The client is saying that they intend to give notice and has given you advance warning of that.

In essence a contract is only as long as the notice period and if the client decides otherwise then it's not even that long.

Harsh I know, but it's a reality of contracting and the flexibility is a crucial part of why our relatively high rates are acceptable to clients.

[TheFaQQer]

I'm afraid that's contracting in a nutshell for you.

WHS.

The annoying thing is that these days. more and more clients are putting in clauses which say that they can give you notice but you can't give them notice. So when they realize they messed up their numbers, they can get rid of you easily, but if you find that you want out you can't do the same.

Suck it up, act nice, tell them you understand and it's nothing personal etc. Remind them that if they need you in the future, they know where you are - and if it's after a while, you might be able to go direct and avoid the agency fees. And start looking for something else.

Good luck with it.

[PogIng]

Thanks for your comments guys,
I just think it's bad form on the part of the company. I would have been quite happy to take a one month roller and take it from there.

Life goes on and the jobs are still out there.
TTFN.

[escapeUK]

Hello,
Most of the clients staff have expressed surprise at the extension. I am surprised by the extension.

Next time dont be surprised, tell everyone there is loads to do. Or dont be surprised when you get canned.

[Wanderer]

I just think it's bad form on the part of the company. I would have been quite happy to take a one month roller and take it from there.

Yeah, they could have handled it better. However, don't forget that one of the reasons clients pay a premium for contractors is that they can drop them at short notice should they need to.

As the others have said, leave on good terms - you could very well find yourself back at the client working again in future!

[mavster07]

Legally, you could argue that the client entered into the contract 'in bad faith' or without a good faith basis that the length of the contract would be honoured.

You could certainly, and politely, communicate to the client that you feel this could have been better handled as it has cost you opportunities which you feel they should fairly compensate you for, and try your luck there.

But the lesson to be learned here is to have he client 'validate' the pipeline of work behind the contract. One way of doing this is to actually ask the client to include in the contract the specifics of the project, role, milestones etc in the contract itself (perhaps against a known plan). Most clients won't do this but I had a couple that did and then it was fairly clear that the work was there. If a client does this and then terminates before the contract even starts, you could argue that they misrepresented the true state of play. How much you kick off depends on how much the contract is worth really......and whether you want to stay on.

I agree with other posters that this sort of behaviour from clients makes contracts 'worthless' at law because one side can enter into a contract without actually having any 'good faith' that they need to honour the contract or not. It helps to know a little about contract law to know what sort of terms you can include in your contract that can negate this sort of behaviour and 'assert' to the client that you are committed to this contract being successful and that they should behave likewise.

[Fred Bloggs]

I had a contract binned before I'd even started it once, at zero notice! I think that really, overall, you're lucky to have been given advance notice that you will be canned. Most client co's wouldn't bother. They'd just bin you. I advise you to keep well in with this client as they seem like a good one to me. Good luck with the next job.