Completion bonuses

[mouseorgan]

Howdy cowpokes,

After handing in notice on a contract due to poor pay and a few other things I've been offered a completion bonus instead of an increased rate due to the supposed politics of implementing an increase for an existing contract / role / project. I've been advised to request a bonus which would equate to the increase I'd be after, and define a milestone suitable to pin it to, but as this agreement would not be part of an existing contract and only delivered under certain conditions. I mostly trust the word of people involved and such and only want to be paid what I take to be the market rate for what I am doing. I think it's a pretty good and clever idea, and keeps me on board until the project delivers, so kudos to them for that angle, but I'm kinda concerned it could magically evaporate or similar. Does anyone else have experience of this sort of arrangement? Also would this need to go via the agency??

Thanks

[Mr.Whippy]

After handing in notice on a contract due to poor pay and a few other things

Does anyone else have experience of this sort of arrangement?

No, call me old fashioned but imo it's best to only sign contracts when you're happy with the terms/rate/role at the start and then to see through your contractual obligations.

[TheFaQQer]

As long as it's a formal contract with a decent wording on the milestone, then there's no problem.

Make sure you calculate it properly, though - if you miscalculate then you'll be kicking yourself when the time comes. If you are likely to jump ship (which doesn't seem too unlikely) then factor that in as well, to make it worth your while.

[Wanderer]

I've been offered a completion bonus instead of an increased rate

Bonuses are pie in the sky. A million things can happen that prevent you from qualifying for your bonus and it turns into a real nasty situation if you try to argue the point about them. I would stick with the old fashioned "will work for money" and when the work dries up or the project goes tits up, bugger off somewhere else.

The only time to take a completion bonus is if you are truly in charge of the budget, resourcing and delivery of your project.

[Mr.Whippy]

A million things can happen that prevent you from qualifying for your bonus

Such as them serving notice a few weeks before the end of the contract to avoid having to pay it out.

[mouseorgan]

Such as them serving notice a few weeks before the end of the contract to avoid having to pay it out.

Well that's the sort of thing I'm worried about. There should be plenty more work in the future though within the project, I'd like to think they just really need something to hang a cost on.

[Punter]

I've had contract completion bonuses before. One was conditional on extension being accepted if offered, the other was paid even though the contract finished early. Both were less than 5% of the daily rate, and the client liked the idea.

[TheFaQQer]

Such as them serving notice a few weeks before the end of the contract to avoid having to pay it out.

My first summer job was like that - if you survived the place and left in accordance with your contract, you got a bonus equivalent to 30p for each hour you'd worked that season.

Last two weeks of summer, two managers used to hunt in packs for any minor infraction which meant they would fire you without any prior warning so they didn't have to pay bonus.

[TheFaQQer]

Well that's the sort of thing I'm worried about. There should be plenty more work in the future though within the project, I'd like to think they just really need something to hang a cost on.

If you are worried, then include a clause which says that in the event of client termination for whatever reason, an early termination fee of £x shall become due. Make £x more than the value of the bonus, and you're laughing - then you just need to get them to fire you

[Fred Bloggs]

Current client co has agreed to pay me 30x day rate if I stay till they bin me. I was going to anyway, so a win/win situation I think. It isn't a contractual agreement, but I believe they'll pay if I stay till the end.