Low Rate Contract
A reader posted the following question about his low rate contract.
I’ve just been offered an 8 month extension to a contract I’ve had for 6 months already.
The money is lowish for my skill and experience but I don’t think they will increase it [BT !]
What do you guys think is best. Should I take a longer contract on lowish money and get the continuity or should I get out and get a shorter contract for more money?
It’s difficult call in this current market. I’m not sure if it might just all disappear again like the morning dew.
I actually worked for BT a while back and they fired everyone but kept a few people including myself. I was on low money but then T-Mobile offered a much better deal so I jumped ship.
Then after 3 months my role was outsourced!
It took me a few weeks but I’m back at BT again on a bit better rate then before but still low.
Dr. McLaughlin’s Contractor Surgery
In terms of whether you should quit BT, I would say that you should hang on to the contract that you have got whilst keeping feelers out as regards other contracts.
It may be a low rate contract but you get nothing but a lot of worries sitting at home.
It doesn’t really matter if you have one of those contracts with no get out clause.
As with footballers who want to leave their clubs, companies don’t want to keep someone who doesn’t want to stay.
Contract Market Getting Better
The market is getting better all the time, but it is not so good that you can simply pack in one contract and pick up another one while you are serving your notice.
You may be lucky. However, the chances are that you won’t and it may take you a month, two months, three months or even longer to get a new contract.
Your time will come to get better rates again, but in the meantime the best policy is to keep earning while keeping a weather eye out for something better.
It’s amazing how a couple of months off bites into the old cash reserves.
Keep your low rate contract till you find another better paying one.
Ad – Contractor Services
If you do need an umbrella company you could try one of the following:-
Or would you prefer to get expert advice about which umbrella company is right for your specific needs? If so fill in the form below and they will be in touch.
For Mortgages specially designed for contractors try Specialist Contractor Mortgages.