Contract Position - For what financial increase would you take it?

[AdrianH]

I have been asked if I would want a 12 month software development contracting position. Last time I contracted was in 2004 and I have been a permanent employee ever since. I would be giving up a good position at a large corporate with decent benefits and job security.

If you were given a choice to leave your current permanent position and take up a 12 month contract position, what financial increase based on your current salary would you ask for?

 

[MrGray]

It would have to be an amazing inducement to give up a good position with good benefits and job security for a 12 month contract. Do the math and work out what your retirement benefits, medical benefits, etc etc would add up to if you stayed in your position for another 10 years - add that to whatever they're offering, because that's effectively what you're losing.

 

[Nerfherder]

It would have to be an amazing inducement to give up a good position with good benefits and job security for a 12 month contract. Do the math and work out what your retirement benefits, medical benefits, etc etc would add up to if you stayed in your position for another 10 years - add that to whatever they're offering, because that's effectively what you're losing.

Also work out what you would get if they retrenched you in the next month.

 

[cguy]

Normally, I would consider it for a ~100% increase. Post-contract, should you want to return to permanent employment, you are at a severe disadvantage when negotiating since you don't have a job. Also, you've lost seniority and experience within a given company and would need to re-establish yourself somewhat. Not to say there aren't possible advantages to contracting experience and working with more companies on more diversified projects and technologies with more people, but it's often a lot riskier than people realize.

For me personally, it's hardly an option since I have a multi year non-compete. It would have to be ~600+%.

 

[[)roi(]]

I don't recommend that you consider an hour / day contract unless the rates are insanely high and you'd be assured a minimum contract amount irrespective of early termination and/or significant project / scope changes.

Fix Term / Fixed Scope / Fixed Amount
I tend to always prefer fixed term / fixed scope projects which start with a paid scoping process including a written specification which not only affixes the scope but so too deliverable, QA and payment timelines. Never affix too large a % to QA; Payment should be equally apportion to each step based on effort.

Specification and Build usually are the greater component's. So not more than 10 to 15% should be held over for QA and deployment.

Out Of Scope
Rates for anything out of scope should be covered separately in the contract. These commitments are however dependant on both a separate specification and scoping sessions, including timeline impact analysis and payment schedules; more specifically one where there is agreement that you don't get penalised i.t.o. previously agreed payment plans if the client reprioritises deliverables.

Risks
Avoid contractual scenarios where a client insists on enacting penalties for extra / changed features they added late to the project and/or for features that will impact project deliverables / timelines and/or payment schedules. Rather consider early delivery bonuses.

Additional Scope
Preferably scope adjustments should be restricted to exceptional circumstances e.g. major impact to business case / legal or compliance changes that could not have been foreseen prior to project engagement.

Naturally the best outcome is always contracting extra scope separately incl. specification, contract, build, QA and deployment.

Ps. Skip payment escrows, they're usually more pain than solution with risky profiles. Reputation alone is usually not worth taking on a precarious and/or financially unstable client.

 

[AdrianH]

Thanks for all the replies.

I think I will pass up the opportunity. The short term financial benefits will not benefit me in the long run.

 

[Ghost02]

Thanks for all the replies.

I think I will pass up the opportunity. The short term financial benefits will not benefit me in the long run.

Out of curiosity, what was the % gain?