Q. I’m currently coming to the end of my first contract (3 months) and after much chasing I have received an offer for an extension. However, whilst I was waiting I applied for several other roles and I expect to receive an offer from one of them.
The current project I’m on will continue for approx 9 more months and I expect them to want me for the duration, but the other role is in a preferable location, rate and duration (1 year).
My question is how much will it affect my CV to have such a short stay with a client? Also I know this will leave them in the lurch somewhat from the project perspective so what risk do I have of them giving me a bad reference? On the other hand they are the ones that offered such a short initial contract, left it so late to offer an extension and I have still fulfilled my contract obligations.
A. It is not unusual for a client to work short-term contracts due to the nature of the business. Contractors are engaged by clients to provide a specific service and some projects last longer than others, therefore a short-term contract should not reflect badly on your company portfolio.
By not accepting the offer of an extension implies that no mutuality of obligation exists between the parties, which is positive from an IR35 perspective. IR35 is a legislation that limited company contractors should always consider.
As a contractor in business on your own account, it makes commercial sense to accept a contract that is offering more money.
Too many noobie contractors think a year’s contract guarantees them income for a year or more security than a 3 month extension from the current client.
It doesnt. Your contract isnt even as long as your notice period (if you have MOO).
Bolshie, you’re right I’m a newbie to contracting. What do you mean by MOO?
Otherwise of course any new contract has some risk that you won’t get on and they will not think you’re right for the role, but a 1 year contract should be more secure than a 3 month one the vast majority of the time.
MOO is Mutuality of Obligation.
See https://www.contractorweekly.com/contractor-toolkit/understanding-the-ir35-legislation
Ah ok, in that case there’s nothing in the contract that mentions anything of the sort. Its clearly just a fixed term contract to provide project management services. No specific tasks are mentioned or even hand over tasks etc, so i believe that I can just not sign the extension and hand back my laptop and pass next Friday if that is what I decide.
Also FYI the contract is in Amsterdam so there’s no IR35 consideration here.
Thanks for that link. Thankfully I fall outside of this as I’m both living and working in the Netherlands. So I’m now one of those EU immigrants coming over here and taking someone’s job! Like the reverse UKIP scare story.