Advice Needed

[jsnetman]

I am currently permanent but have been looking at contract work for the last four months. It has taken that long to land my first contract. My area is network/server/desktop implementation, management and 3rd line support. The day rate for this contract will be approximately a third more than my present day rate.

The problem I am facing is that my heart wants to go into the contracting business but for this particular one my head is telling me no, even though it is for a highly regarded client. The contract is for 3 months and at interview I pressed them for any chance of extensions which they could not guarantee. Given that it is only likely to be for three months and would not give me enough time to build up a pot of money for the possibility I would be out of work at the end of it and might take another few months to land another contract.

I have been in my present employment for 11 years but has become very boring, and wish to to go into contracting for variety and increased earnings potential. I am married with 2 small children and a mortgage, that is the crux of the hesitation I am now facing, throw caution to the wind or stay put until a longer more lucrative contract comes my way.

I know I have probably answered my own question here but would welcome any advice from you seasoned contractors.

[cojak]

3 month contracts are the norm at the moment.

If you can't live with that kind of uncertainty I would say that your circumstances don't favour contracting.

You'll need a very supportive spouse at the beginning, a partner harping on about you leaving a good permie role if you find yourself benched within the 1st year is not a good place to be.

I'm not saying that you won't get an extension, but you need to be able to live with that possibility.

It is a fundamental difference in thinking between a contractor and a permie.

[jmo21]

3 month contracts are the norm at the moment.

If you can't live with that kind of uncertainty I would say that your circumstances don't favour contracting.

You'll need a very supportive spouse at the beginning, a partner harping on about you leaving a good permie role if you find yourself benched within the 1st year is not a good place to be.

I'm not saying that you won't get an extension, but you need to be able to live with that possibility.

It is a fundamental difference in thinking between a contractor and a permie.

WCS

/thread.

[redgiant]

When I was first looking for contract work I was always looking for six months or more contracts and found that the vast majority seemed to be three months. It's the state of the market these days as contract work is volatile.

In financial services for instance they tend to work on 90 day billing cycles so this limits the length of contract. Also you will find out that some financial services (and possibly some others) will restrict contractors to working nine months maximum in a year.

You need to be flexible (you will have some time on the bench at some point) and also start looking for your next role around six weeks before the end of the current contract.

[Wanderer]

I am currently permanent but have been looking at contract work for the last four months. It has taken that long to land my first contract. My area is network/server/desktop implementation, management and 3rd line support. The day rate for this contract will be approximately a third more than my present day rate.

Contractor hourly rate = permie yearly salary / 1000. If it's less than that then don't take the contract, especially if you don't have a pile of savings to fall back on. Make sure you are properly compensated for the risks and sacrifices you are going to take going contracting. If your offer isn't good enough then sit tight and wait for a better one.

The contract is for 3 months and at interview I pressed them for any chance of extensions which they could not guarantee. Given that it is only likely to be for three months and would not give me enough time to build up a pot of money for the possibility I would be out of work at the end of it and might take another few months to land another contract.

Forget the 3 months, your contract is only guaranteed to be as long as your notice period. One of the attractions of engaging contractors is that the client can dump them as soon as things go wrong. If you get binned after 1 month into a "3 month" contract then you can't come on here crying about it. You've got to be able to survive for 6 months or more with no income if you want to go contracting and that means having some savings.

I have been in my present employment for 11 years but has become very boring, and wish to to go into contracting for variety and increased earnings potential. I am married with 2 small children and a mortgage, that is the crux of the hesitation I am now facing, throw caution to the wind or stay put until a longer more lucrative contract comes my way.

Contracts vary, some are tough and others are easier. Taking time off to look after your kids when they are sick isn't always going to be possible in a contract whereas in a permie it's a right.

Then again, you might get benched and get to spend some time at home with the kids. As long as you have the money to back you up it could be a really positive thing. Getting a flexible mortgage was the best thing I ever did as it smooths over these times.

Good luck

[psychocandy]

I am currently permanent but have been looking at contract work for the last four months. It has taken that long to land my first contract. My area is network/server/desktop implementation, management and 3rd line support. The day rate for this contract will be approximately a third more than my present day rate.

The problem I am facing is that my heart wants to go into the contracting business but for this particular one my head is telling me no, even though it is for a highly regarded client. The contract is for 3 months and at interview I pressed them for any chance of extensions which they could not guarantee. Given that it is only likely to be for three months and would not give me enough time to build up a pot of money for the possibility I would be out of work at the end of it and might take another few months to land another contract.

I have been in my present employment for 11 years but has become very boring, and wish to to go into contracting for variety and increased earnings potential. I am married with 2 small children and a mortgage, that is the crux of the hesitation I am now facing, throw caution to the wind or stay put until a longer more lucrative contract comes my way.

I know I have probably answered my own question here but would welcome any advice from you seasoned contractors.

Hmm. As someone else said, how does the Mrs feel about it? Need to make her understand that even if all this dosh comes in at first, there might be times when things are tight.

Never can tell how long a contract will last and pretty much no-one will be able to tell you if there are going to be extensions. You could be lucky or get canned with a notice period.

Bit worrying that day rate is only 1/3rd more than you're permie rate. Also, your skills dont tend to pay the most if you dont mind me saying - the market is somewhat saturated. Also of concern is that it took you 4 months to get something. Where you looking properly during this time?

Its just that if contract does end, how confident would you be of getting something else soon? What part of the country are you in? Would you be willing to travel?

With me, I was made redundant from permie job recently (4th time in 10 years!) so permie jobs are losing their appeal for me. Getting a contract was a no brainer - and my Mrs was well up for the idea and understands the drawbacks (I think!). If Mrs had been funny about it I'd have waited for a perm job.

Although, saying that, Im in Wales (not great place for work) and tend not to stay away at all. However, the times I've been out of work I've always found something else within a few weeks (although each has been a very arse-twitching experience!!!).

Possibly my skillset is different (Unix/Linux and net management) with some niche stuff. Also, because I've been around for a while and I is not young, getting 3 roles in the last 10 years have been 'helped' because I knew people. Its a small world of IT in Wales - LOL.

Basically, how confident would you be to get work in the future either based purely on your skillsets or through contacts?

[psychocandy]

Contractor hourly rate = permie yearly salary / 1000. If it's less than that then don't take the contract, especially if you don't have a pile of savings to fall back on. Make sure you are properly compensated for the risks and sacrifices you are going to take going contracting. If your offer isn't good enough then sit tight and wait for a better one.



Forget the 3 months, your contract is only guaranteed to be as long as your notice period. One of the attractions of engaging contractors is that the client can dump them as soon as things go wrong. If you get binned after 1 month into a "3 month" contract then you can't come on here crying about it. You've got to be able to survive for 6 months or more with no income if you want to go contracting and that means having some savings.



Contracts vary, some are tough and others are easier. Taking time off to look after your kids when they are sick isn't always going to be possible in a contract whereas in a permie it's a right.

Then again, you might get benched and get to spend some time at home with the kids. As long as you have the money to back you up it could be a really positive thing. Getting a flexible mortgage was the best thing I ever did as it smooths over these times.

Good luck

permie/1000 as hourly rate. Never heard that one. I think I'm about even on that one compared to my last permie.

[northernladuk]

permie/1000 as hourly rate. Never heard that one. I think I'm about even on that one compared to my last permie.

So you are now working for short term contracts, possibility of no work, no benefits and all that risk for the same as the permie job you just left? Seriously?

[mudskipper]

A third more doesn't sound enough to make it worthwhile. Bear in mind you don't get paid holidays, employer pension, sick pay, redundancy or any other benefits. You do need some reserves - just a few weeks ago there was a post from someone who'd packed in their permie job and had the contract pulled at the 11th hour - it does happen.

[jsnetman]

I guess you guys are right, on the salary/1000 I am nowhere near, they are 10 hour days as well, which I am not really bothered about but it does lower the hourly rate considerably. Think I will wait for a better opportunity, plus my current work paid for a Prince2 course beginning soon, which will be binned if I leave, I think I will stay where I am get my Prince2 and see if I get get anything in hands on/technical type project management. Thanks for your advice it was much appreciated.