Decisions...decisions...Perm vs Contract Decisions...decisions...Perm vs Contract
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    Default Decisions...decisions...Perm vs Contract

    Hi, would like to gather people’s thoughts on a scenario I anticipate happening and want to understand what you would do in my situation.
    Now I’ve been a contractor for 6 years within banking so very well aware of the risks and rewards involved, Iv been without a contract since end of December with the war chest slowly depleting. With contracts being few and far between I potentially have 2 upcoming offers as per below:-

    1) A contract offer of £475 a day for a government based project (6 months contract) but I know there’s potentially at least a years worth of work - only 10mins drive

    2) £60k perm role back at a company I used to work for (I know them well and expect longevity) - 50mins drive however once settled will get 2-3 days wfh.

    In normal circumstances the obvious choice would be the contract role (no questions asked)...however we aren’t in normal time’s and I have something niggling at the back of my mind that due to the abundance of money the government has had to spend because of the pandemic, a balance of the books would need to be completed sooner rather than later therefore any cost cutting initiative would most likely occur within their own projects (therefore contract could get cut short).

    Due to the current pandemic would you seek the security of the perm role which means riding out the effect of the pandemic and impacts of IR35 (the law although has since been reversed but most likely will be enforced in 2021 but still expect alp t of banks continuing to enforce blanket rules).

    Now if your reading this it might sound like my mind is made up but I would like to understand what you guys would do in my situation with the current world being as it is? (Please be kind Decisions...decisions...Perm vs Contract)

  2. #2

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    Inside or outside?
    What's the warchest like?
    I started at a Gov client in mid Feb on a piece if work thats expected to last over a year. They've already canned 3 of the 5 contractors that started due to cost cutting and a glut of perms with less to do than normal. Things are certainly different in some PS clients at the moment.
    Last edited by northernladuk; 7th May 2020 at 00:26.
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    And another story. Contractor took a perm gig at our then client as he liked it there and the IR35 thing was approaching. He's package was probably similar to yours and he's earned more than me in the last 10 months....

    I'd say that is a tough decision you've got there. Have to say that drive would probably be the nail in the coffin for me.
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    Quote Originally Posted by northernladuk View Post
    Inside or outside?
    What's the warchest like?
    I started at a Gov client in mid Feb on a piece if work thats expected to last over a year. They've already canned 3 of the 5 contractors that started due to cost cutting and a glut of perms with less to do than normal. Things are certainly different in some PS clients at the moment.
    It’s an outside role and war chest probably has enough to last another 4-5 months.

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    Quote Originally Posted by northernladuk View Post
    And another story. Contractor took a perm gig at our then client as he liked it there and the IR35 thing was approaching. He's package was probably similar to yours and he's earned more than me in the last 10 months....

    I'd say that is a tough decision you've got there. Have to say that drive would probably be the nail in the coffin for me.
    Yeah agreed, it’s a tough choice so wanting to see what other people would do.

    Most of my contract roles have been in london as a BA so am used to getting high rates of £600pd + but then there was the 4-5hrs of commuting per day.

    The 2 potential roles open to me are obviously a lot lower in comparison to my previous contract roles but it’s closer to home which for me outweighs any monetary cuts.

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    If I were you, I would go for contract role as you can get canned even in perm roles.

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    Quote Originally Posted by Daplayer321 View Post
    In normal circumstances the obvious choice would be the contract role (no questions asked)...however we aren’t in normal time’s and I have something niggling at the back of my mind that due to the abundance of money the government has had to spend because of the pandemic, a balance of the books would need to be completed sooner rather than later therefore any cost cutting initiative would most likely occur within their own projects (therefore contract could get cut short).
    Spending is not going to be cut until the economy is rolling again. They might increase taxes but that would be incredibly stupid.

    If they have any economic sense at all they'll continue with the deficit spending for at least a year to get the economy rebuilt, then start to peg back spending. What I expect them to do is continue with the ballooning deficit for at least two years and then increase taxes, rather than really come to grips with spending excesses.

    I'd be shocked if your project gets canned because of fiscal restraint. Possible it would for other reasons, of course, but this lot aren't into fiscal restraint, and if they do become born again budget hawks, it isn't happening soon.

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    I would take the contract, but ultimately have to do what you feel comfortable with. At 475 outside. That's probably around a 2x on the take home pay of 60k salary depending on how you calculate it.

    To me that's worth the risk but of course you're asking this question on a contractor forum so you will get a bias result. I would think most people here would gladly take the contract.

    For me personally I'd rather work 6 months at 475 day rate, sit on the bench for a year vs working in a permie job with no end in sight. Just going in there every single day knowing it will never end, that's just the worst feeling in the world to me. I hate it. I would end up leaving the permie job after a year anyway so may as well just do the contract job and get paid properly for my time.

    I've only done 1 government contract and it was the most relaxed contract I have had so far but I am not sure if that is typical or not.

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    Take whichever one you think you'd enjoy the most. Seriously. Nothing is certain these days.

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    At £475 a day, that's a great rate compared to a £60k perm role. Take the contract but don't burn your bridges. If you've kept your cards close to your chest then you could advise that you're on a contract still.

    Personally, I'd say that if you want to stay a contractor, do so. Don't dip into perm then look back to contract with regret. I made a conscious decision over two years ago to call time on contracting because it was right for me. If you want to stay a contractor, do so.
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