Contracting Arrangement

**stek** · 8 December 2014, 16:55

24 Month rule?

**Batcher** · 8 December 2014, 16:59

Originally posted by MojoDog View Post

So,

Been offered a 2-year role in the automotive industry. At the interview, the head honcho suggested 2 options under which I could go and work there:

1. The usual agency route by means of rolling 6 month contracts.

2. MyCo Ltd providing a quote for 2 years work set against agreed deliverables and based on a 40 hour week. Any overtime would shorten the contract, working less than 40 hours would lengthen it.

Quote: "The contracts we usually set up are with other companies - and we fund you through these companies. You would still get a monthly invoice but the order from us would go through this other company as they are on our books, and your company is not.

It operates very much like a Contract agency, except that we raise an order for 2 years worth of `deliverables` in one go, and the company invoice off this total order. You would get paid as you would a contract agency, which pays monthly. The companies we go through are reputable companies - and they mark up your rate to allow for the admin (as again do contract houses.)"

Have to admit I've never encountered this arrangement before and wondered if anyone had any comments / suggestions / guidance / advice / *unpleasant sarcastic or self-righteous observations*

Many thanks

*I'm not too interested in any of these, but this being a forum I guess it's sadly inevitable :-)

Surely if 2) is against agreed deliverables, the number of hours you work doesn't come into it? As long as you deliver, you should get paid whether it takes you 3 months or 2 years.

**malvolio** · 8 December 2014, 17:26

You have to ask? Option 2 is pretty much the IR35 get out of jail free card. You're carrying risk, you can benefit from efficient working, there is no realistic chance of excess mutuality and clearly you are determining how and when you work and what you do. Grab with both hands, finish the job early and get an effective rate rise.

**tractor** · 8 December 2014, 17:43

...

Originally posted by Batcher View Post

Surely if 2) is against agreed deliverables, the number of hours you work doesn't come into it? As long as you deliver, you should get paid whether it takes you 3 months or 2 years.

They don't. AutoCo has just used 40/pw to estimate the cost and likely duration otherwise it would be a blank cheque. I would pay much attention to the acceptance criteria and any dependencies on other suppliers/internal readiness for delivery.

I would want to know much more about the 3rd party though If I didn't want to go down the agency route.

**TestMangler** · 8 December 2014, 18:17

Originally posted by MojoDog View Post

So,

Been offered a 2-year role in the automotive industry. At the interview, the head honcho suggested 2 options under which I could go and work there:

1. The usual agency route by means of rolling 6 month contracts.

2. MyCo Ltd providing a quote for 2 years work set against agreed deliverables and based on a 40 hour week. Any overtime would shorten the contract, working less than 40 hours would lengthen it.

Quote: "The contracts we usually set up are with other companies - and we fund you through these companies. You would still get a monthly invoice but the order from us would go through this other company as they are on our books, and your company is not.

It operates very much like a Contract agency, except that we raise an order for 2 years worth of `deliverables` in one go, and the company invoice off this total order. You would get paid as you would a contract agency, which pays monthly. The companies we go through are reputable companies - and they mark up your rate to allow for the admin (as again do contract houses.)"

Have to admit I've never encountered this arrangement before and wondered if anyone had any comments / suggestions / guidance / advice / *unpleasant sarcastic or self-righteous observations*

Many thanks

*I'm not too interested in any of these, but this being a forum I guess it's sadly inevitable :-)

Without wishing to be over pedantic, lots of people talk about 'rolling contracts' and simply have no idea what they are. A rolling contract is NOT a six month fixed term contract followed by another one and another one.

On the positive side, option 2 (with some investigation of the other parties involved) is pretty much a no brainer, but watch out for estimating how much quicker you can do it without taking into account deliverables you require from 3rd parties. I've had a few 'call off' type gigs over the years (a purchase order for a certain amount of days, in six month blocks) and much prefer them to traditional date to date contracts.

**kaiser78** · 8 December 2014, 20:30

Originally posted by MojoDog View Post

So,

Been offered a 2-year role in the automotive industry. At the interview, the head honcho suggested 2 options under which I could go and work there:

1. The usual agency route by means of rolling 6 month contracts.

2. MyCo Ltd providing a quote for 2 years work set against agreed deliverables and based on a 40 hour week. Any overtime would shorten the contract, working less than 40 hours would lengthen it.

Quote: "The contracts we usually set up are with other companies - and we fund you through these companies. You would still get a monthly invoice but the order from us would go through this other company as they are on our books, and your company is not.

It operates very much like a Contract agency, except that we raise an order for 2 years worth of `deliverables` in one go, and the company invoice off this total order. You would get paid as you would a contract agency, which pays monthly. The companies we go through are reputable companies - and they mark up your rate to allow for the admin (as again do contract houses.)"

Have to admit I've never encountered this arrangement before and wondered if anyone had any comments / suggestions / guidance / advice / *unpleasant sarcastic or self-righteous observations*

Many thanks

*I'm not too interested in any of these, but this being a forum I guess it's sadly inevitable :-)

Wouldn't option 2) be a rather long period (2 yrs) to commit to ? I would go option 1).

**MojoDog** · 8 December 2014, 21:06

Originally posted by TestMangler View Post

Without wishing to be over pedantic, lots of people talk about 'rolling contracts' and simply have no idea what they are. A rolling contract is NOT a six month fixed term contract followed by another one and another one.

On the positive side, option 2 (with some investigation of the other parties involved) is pretty much a no brainer, but watch out for estimating how much quicker you can do it without taking into account deliverables you require from 3rd parties. I've had a few 'call off' type gigs over the years (a purchase order for a certain amount of days, in six month blocks) and much prefer them to traditional date to date contracts.

I have to admit, the novelty of a different approach attracted me to this. Also, ClientCo carries a lot of prestige and will be a major scalp on my CV. Add to this the fact that their main site is in commuting distance (which after 12 months of living away is a bonus), the role is basically mine to take forward and work out a strategy to achieve the goals and there may be scope for foreign travel and I'm beginning to feel like Christmas is coming early... God bless us one and all :-)

Thanks to all who replied so far.

Contracting Arrangement