Contract job
Contract job
(OP)
Recently, someone offered me a 1-year contract job opening. I have never dealt with anything like it. What would be the pro and cons. I like what they do and interested about the job but a little nervous about it.
thanks
sltg
thanks
sltg





RE: Contract job
corus
RE: Contract job
Coka
RE: Contract job
CONS - No job security; fewer benefits (in my experience, vacation, holidays and insurance can be negotiated); hard on family life
I have experienced 10 years as a contractor, but it got to the point that I was tired of moving around and wondering where the next job was. If you are young and single, it is a great way to gain experience in different industries while being well paid.
RE: Contract job
Do I have supervisor or senior people that I report to?, how does my work in job contract compare to full time employee type of deal.
Thanks
sltg
RE: Contract job
Don
RE: Contract job
At the job before that, I got pretty much the same deal, with 50% of my rate at per deim, but $10 less per hour. I was contract there for three years before the client company made me go temp/direct, which eliminated the benefits. I was out of there a year later.
If you have skills that are in demand, it pays to negotiate!
RE: Contract job
Case in point: To survive the recession after layoff before 9-11, I incorporated a company for liability and tax purposes and started freelancing. After barely surviving for a couple years, I took a 90-day "temp-to-perm" position at a rate much less than my going rate. The logic was to put up with it, later I'll get somebody else to pay my health insurance and I can work a regular 40 hour week. Ninety days came and went, and at seven months they dropped me. The boss "graciously" offered to keep me on another five weeks. I told him only if he paid me through my company and at my rates. He looked at me like I had a crowbar sticking out of my ear.
Luckily I have a skill in short supply (robot programming) and I recently learned that others doing this are charging outrageous rates, and getting away with it. So I jacked up my rates accordingly and nobody has complained.
Market economy, market rates, baby. Good luck.
TygerDawg
RE: Contract job
The work is pretty much the same as if you were direct. You are generally assigned to specific engineers or programs and do the same type of work as the directs. The good thing is that you don't have to stress out about how poorly you may think the company is run, unless you do desire to go direct. Some companies are better than others at accepting you into corporate "family" and treating you just as they treat any other employee. For me, being like a duck and letting the BS roll off my back was a definite benefit.
RE: Contract job
here are a couple of sites that cater to hard core contractors and job shoppers, you can learn a lot by snooping around the site.The second one publishes a magazine and you have t osubscribe to get access to everything.
http://www.roadtechs.com/
http://www.ceweekly.com/
ewh - The "cons" you listed go with a lot of jobs, contract or not. it's going to get worse. Remember Yogi" The future ain't what it use to be"
RE: Contract job
That somewhat depends on your seniority and potentially makes a big difference in your tax liability.
If you are simply given a statement of work and a task, then you might be considered to be a contractor with its tax aspects.
Alternately, if you are under fairly tight supervision and review, then you'd be considered a temporary employee.
You should consult with a tax professional as well as your customer to determine which is the case.
TTFN
RE: Contract job
Thanks for the respond. Let say the contract is for 1 year, can I quit before then. I know I can get laid off/fired at anytime, does it go the other way around?.
Also, what is the best way to determine your rate?. Any website that does that?
Thanks
SLTG
RE: Contract job
In the end I was there 5 years and after 2 years of being a contract worker I was hired full time.
The negative with that contract job were the following
1) The rate was lower than what colleagues who worked for the actual company had.
2) Benefits, etc were worse than the actual company
3) Stigma of being contract in such a company can grow tiresome. In this case everyone that was contract wanted to be hired on. It was discouraging to see the company hire in so many new people, while not converting contract workers to full-time.
However, If I liked enough items about the job, I would consider it again.
Key questions for me are
1) Is the job in a location I like
2) Do they work in an industry or manufacture a product I find interesting.
3) Do the people you meet within the company appear to be happy? (This is always tough, I never get a good read for the morale within a company when I visit)
RE: Contract job
If this is for an engineering job, professional liability insurance is a very real issue. I was a consultant for 3 years, and spent a large part of my time dealing with setting up the insurance, and worrying about future coverage requirements.
For that reason alone, I do not do it anymore. Depending on your local laws, you need coverage for a long time AFTER you've completed the work, and it can be a real nightmare of you're sued down the road and you do not have the insurance co. lawyers on you side.
Something to think about...
tg
RE: Contract job
There are various types of contracts. Most of the ones in the engineering world are just high tech "kelly girls". These are the same as temporary jobs. You don't need insurance as it is usually covered by the owner (or your employer if you go through a "Shop". most companies don't like to contractors directly with indivuals, it's to much trouble for them.
The keys to contracting as a temp are:
1.) Technical competance, They bring you in because they need expertise. make them pay for it. Study and develope an expertise in some field. Your a "hired gun" to do a job they can't. Work hard, do a good job, lstay away from the water cooler and BS sessions. If your good your reputation will preceed you.
2.) Most contractor are for an hourly rate, when it's time to go home - go. Start again tomorrow.
3. ) Get a good shop to represent you. They take a cut but if there good there worth it. They can get you work and money ( the more you make they more they make).
4.) Adjust your life so you don't have to work all the time. 6 monts a year working at $90 an hour is the same as 12 months at $45.
In my experinece the tougher times get the more employer want controctors, they still have work to be done and don't want to hire anyone.
I am not necessarly recommending the contractor life, it's just the with a lot of people our of work it's an option everyone should keep in their pocket. Some firms hire contracotrs to get a "look at" them and then offer them a permenant job ( if there is such a thing)
RE: Contract job
What do you mean by "shop"?, The recruiter said that they are the one that giving me a paycheck every month, not the real employer. In this case, should I have liability coverage?. The job isn't for public service, but it is mechanical design work for defense system.
So if you start your own bussiness as a contractor in mechanical design work, you would need liability coverage?
Also, how do you determine your hourly rate?.
Thanks
SLTG
RE: Contract job
Job shops use to be smaller businesses but now many large companies ( likke Bechtel and the Washington group) run their own. They can hire people for more money and shorter durations that way. There are a bunch of them listed on the Roadtechs website. Heres a typical companies website
http://www.statco.net/open.html Shops use to deal almost exclustivly in engineers and designers. In the last 6 or 8 years I've seen shops that supply butchers, bakers and candlestick makers.
The pay for jobs is probably down at the moment because of the way the economy is. When times are good and companies need you they pay overtime, per diem etc. Contract employee expenses can be charged directly to a job, just like nuts and bolts. Your wages as a contractor are treated differently by accountants that employee wages. Companies usually set a limit of what they will pay and then ask "Shops" to find someone who fits their needs. Your rate will be set based on a lot of things including: your expertise in what they are looking for, competition( how many people are willling to work cheaper than you), and how bad they want you. Your "pimp" works with the company and you to get you in and get you all the money he can get for you ( he/she makes more that way).
I am not recomending that people do this just pointing out that it may be better than doing nothing. I know people that do it and love it.
Most shops pay by the week.
Your recuiter sounds like a shop. Will you be working independantly? or will you be taking direction from someone in the company. One way your just an employee getting your pay check through another company, the other way your a consultant. Your best stratigy is to become very good in some areas. Once your reputation is know the'll call you when they need you. You'll be like the high priced gun fighter in the old westerns, sometimes second best just aint good enough.
I used the term "pimp" above because thats what shops and the people who ran them were refered to. The analogy was that when a company needed help they wanted it so bad they'd pay anything for it and when they were through with you they didn't want to see you again. The Roattechs site used to be called Roadwhore.
Sorry about all the rambline, hope ti helps a little -it's chow time.
RE: Contract job
RE: Contract job
That depends a lot on where you are. Based on 1800 billable hours, which was about what I was doing, my pay dropped by only 5% when I worked as an employee instead of as a contractor.
I /know/ that in Sydney (Australia) an Autocad contractor was typically paid less than he would have earned as an employee.
Sure, for short term contracts the rates are higher, but a 12 month contract is a long one.
Cheers
Greg Locock
RE: Contract job
RE: Contract job
I've noticed many companies balking at paying what they perceive to be an apparently high salary to someone they previously paid less to.
TTFN
RE: Contract job
TTFN
RE: Contract job
RE: Contract job
You are being paid a premium because you have no real job security. To anyone under the age of 30 that sounds like a good deal to me. If you are older than that and contracting, you are old enough to figure the odds out.
Autocad contractors in Sydney are between the rock and a hard place, there is not that much engineering around, and the universities and colleges are pouring out Autocaders by the class-load.
Cheers
Greg Locock
RE: Contract job
I'm 29 years of age, graduated from college with ME degree 4.5 years ago. After doing my research and reading all of you guys respond,I'm actually considering a contracting job. We are moving to an area where there are many of engineering opportunities (pasific northwest). At the end I would like to pursue my master degree and hopefully by doing a contracting job will help me to save some money for college or a stepping stone to get a full time job. It looks like contracting job has some risks, but I'd take the risk if I want to grow my career.
Thanks again
SLTG
RE: Contract job
I can tell you that consulting "lifers" can be terrible full-time employees since they tend not to develop the thick skin/political savvy that office politics encourages. It's a tough call consulting so early in your career--I waited until I advanced quite a ways (impressive title on business card) before my first consulting job and it took about 9 years. I was then able to command good hourly rates and the consulting experience then became a plus for me getting a good position when I went full-time later.