Contract extension

**northernladuk** · 13 July 2012, 10:36

Originally posted by andrewb View Post

Does the phrase "contract extension" as in, heard from the client's agency, "we're chasing the client for a contract extension" or "the client is offering a contract extension" just sloppy wording to mean "a new contract with the same end client with a start date temporally aligned to the end of the existing contract"? Or does it imply anything else about the nature of the (new/extended) contract and its similarity to the existing one? Do agencies use this phrase deliberately to make it sound like things are "just the same as before apart from the dates" when they aren't? (And while I'm new to contracting I'm not entirely so stupid as to think that the agent has my interests at heart.) I see from another thread that I can't assume that other terms remain unchanged.

I'm guessing they don't mean to literally vary the terms of the existing contract to change the end date... or does that ever happen?

Anyway, the good news is that they seem to be offering me a "contract extension", but only verbally so far so I'm trying not to get too excited about it. It's getting all a bit 11th-hour, so I might be taking a break.

It can be any and even all of what you mention. First off verbally means squat, start looking for another role. If you haven't signed it you have nothing.

In theory it should be a new contract that is a legal entity in it's own right. It sets out the deliverables and agreements for the next piece of work. The fact that it is the same work as before is neither here nor there really and legal it matters not. This means it can be changed to benefit both you and the client which obviously means someone might lose out. We always expect a rate rise which is a change to contract but cry when they the client changes the notice period. It is a two way street.

Read the contract, understand it, challenge anything you want to but 'it wasn't like this in the last contract' means nothing. Negotiate the changes out on their own merits.

One word of warning. If your role has change in anyway or the deliverables have changed now you are deeper in to the project make absolutely sure this is reflected in your new contract. To sign a contract based on old/out of date/irrelavant deliverables is very bad practice. The contract has to relflect what you are doing in the next contract.

Also get it review with QDOS if it has changed or not. At least then you can prove due diligence should anything untoward happen.

**northernladuk** · 13 July 2012, 10:39

Forgot to add... if it is late think very carefully about turning up on site without one. You have seen this in the thread you mention. Implied contracts are very dodgy territory and not to be taken lightly. Push as hard as you can, threaten not to turn up until you see the contract, bring it to the clients attention etc. Do not just turn up with no signed contract and assume everything is ok.

At worst get some communication from the client that he expect and authorises you to come back and work on his site or something like that.

**Scrag Meister** · 13 July 2012, 10:44

Originally posted by andrewb View Post

Newbie question, but couldn't find the answer over there on the right or with a forum search. (but... there's a lot to read! so may have missed this)

Does the phrase "contract extension" as in, heard from the client's agency, "we're chasing the client for a contract extension" or "the client is offering a contract extension" just sloppy wording to mean "a new contract with the same end client with a start date temporally aligned to the end of the existing contract"? Or does it imply anything else about the nature of the (new/extended) contract and its similarity to the existing one? Do agencies use this phrase deliberately to make it sound like things are "just the same as before apart from the dates" when they aren't? (And while I'm new to contracting I'm not entirely so stupid as to think that the agent has my interests at heart.) I see from another thread that I can't assume that other terms remain unchanged.

I'm guessing they don't mean to literally vary the terms of the existing contract to change the end date... or does that ever happen?

Anyway, the good news is that they seem to be offering me a "contract extension", but only verbally so far so I'm trying not to get too excited about it. It's getting all a bit 11th-hour, so I might be taking a break.

I have never signed a new contract when it comes to the end of my existing contract and have been offered an extension.

Email, or an updated task order of some sort maybe but no signature required, but then maybe it isn't needed if I have confirmed acceptance by email.

**northernladuk** · 13 July 2012, 11:04

Originally posted by Scrag Meister View Post

I have never signed a new contract when it comes to the end of my existing contract and have been offered an extension.

Email, or an updated task order of some sort maybe but no signature required, but then maybe it isn't needed if I have confirmed acceptance by email.

Hmmm Interesting. I did this right at the beginning of my contracting when I did they put me on a rolling 1 month renewal as the project was late so same deliverables. Did it for 4 months and then said no more and left. Not sure I would be happy with this for a set period of x months though. Maybe being over pedantic but there you go.

**andrewb** · 13 July 2012, 11:08

Originally posted by northernladuk View Post

It can be any and even all of what you mention. First off verbally means squat, start looking for another role. If you haven't signed it you have nothing.

Thanks. I did wonder if it was an "all of the above" sort of thing. Yes, understand about verbal not having any value.

Thanks for your other supportive comments, too.

The other thing I didn't mention before, because I was trying to ask a more generic question, is that I'm considering moving from using an umbrella company (for the soon-to-end contract) to using newly registered myco (for the new contract). Obviously in this specific case it'll definitely really be a new contract, since it's between different parties! So, I'll be reading it extra-carefully, if it arrives (or I'll offer one of my own when I've had time to find and modify a suitable template, but I suspect the reality will be that it'll be based on what the agency offers first).

**northernladuk** · 13 July 2012, 12:22

Get it reviewed by QDOS, SJD, Baur & Cotteral et al as well whereever you get your contract from.

**andrewb** · 13 July 2012, 13:13

Originally posted by northernladuk View Post

Get it reviewed

Yes. Definitely going to get it reviewed, if it arrives. Seems well worth the cost from what I've seen so far. Just looking to see what else anyone will offer in a review (other than IR35 stuff).

**andrewb** · 13 July 2012, 15:12

Originally posted by andrewb View Post

Yes. Definitely going to get it reviewed, if it arrives.

Well it just arrived... a little bit 11th hour. It looks like it's one of those "opt out" contracts that states that Myco will supply only opted out people. I see a long sticky thread up top... so I'll go and read that before asking my next newbie question.

**tarbera** · 16 July 2012, 19:52

pop along to this

Meades Contract Review Workshop: An essential guide for contractors on Wednesday 18 July 2012 - Watford | PCG

Contract extension