Work Outside Normal Hours
My client is asking me to work outside normal hours.
I have been working on contract here for some time and now the system has to be implemented at my client‘s client‘s site.
However, there is a bit of a problem.
They want me to work outside normal hours.
I‘m on a daily rate.
However, this is a bit of a disruption to my social life etc.
I feel that they should recompense me for this disruption.
Question Asked about Contract Work
My client has already asked me what I would want to implement the system outside normal hours.
I don‘t know what to charge.
Any ideas Dr. McLaughlin?
What should I charge to work outside normal hours?
Should I just charge my daily rate?
Dr. McLaughlin‘s IT Contractor Surgery Reply
The answer to the last questions is an instant ‘you would be a fool if you did’.
The client has already conceded ground by asking you what you want.
They don‘t think it is fair that you should just receive your normal daily rate so why would you think it was fair?
The answer is that you are in business on your own account and you should get as much as you think you can.
That‘s what businessmen do.
That‘s what your client and your client‘s client do in their normal business.
Fixed Price IT Contract Work
You are a lot closer to it than I am and know the players involved and how important the system is to both sets of clients.
You also know how important it is for them, and what are the benefits to them, of you working outside normal hours.
It is also important to weigh up the business relationship between the two sets of clients.
Is it fixed price work or is it time and materials?
Fixed Price Work for Client
If it is fixed price work then it is only your client you have to worry about and weigh up how happy they want to keep this particular client.
It will be an extra cost to them but one guy working for a bit extra for a fairly short term is not going to wreck the budget or erode the profit margin too much.
In this circumstance I would ask your client for a minimum of time and a third plus any extra expenses you would incur on travel, food etc.
Probably the maximum you could go for would be double time, i.e. double your daily rate.
IT Project Bonus Payments
Whether you pitch it between time and a third and double time is down to you and how good a negotiator you are and how you perceive the opportunity.
Whichever you prefer try to work in some bonus payments for delivery of certain deliverables.
Another way to pitch it is to say that you are on a daily rate but it wouldn‘t be fair for you to work 8 hours in the evening, especially as there are not 8 hours in an evening, and say that 5 hours would be fair for the same daily rate.
Time and Materials
If it is a time and materials contract there might be an opportunity to get paid by the end client.
That has several advantages.
Firstly, having two clients is likely to put you outside IR35 and secondly you have a potential new client of your own and thirdly your agency is cut out of the deal.
Normal Contract Rate Plus Bonuses
There are several ways that you could structure this.
Your own client would pay you your normal rate – which would keep your agency happy.
The end client would pay you bonuses for quantifiable deliverables.
This would go straight to you and would not pass through the agency.
Time to Market Business Driver
End clients prefer to deal this way with it.
It is an incentive for you to produce something for them and they‘ll like that.
They know that you will try harder in order to earn that cash as quickly as possible – and that will be good for them.
Time-to-Market is the normal number one business driver for companies and once it is ready to go they can expect to earn heaps of money from it.
Skinning the Cat
So, there are several ways to skin this cat but it all depends on you and your feel for the situation.
Don‘t be shy though.
Go high and be prepared to be beaten down.
They‘re hardly going to get rid of you at this stage and hire someone else just for your ‘cheek’.
The worst that can happen is that you just get your daily rate – and as the client has already asked you what you want for the job that appears to be the very bottom line.
Opportunity to Make Pile of Money
There is a tremendous opportunity for you here to both make a pile of money and get credibility with this new client.
And when your contract runs out with your client, immediately contact the end client.
You are sure to be able to provide a service at a cheaper rate to them than your current client with all their overheads.
This what you should do when you are asked to work outside normal hours by your client.
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