Although there is increased optimism within the contracting sector, many contractors are still struggling to find work with new or existing clients. Keeping in touch with contractors and clients you have previously worked with could help you find your next role.

Over half of PCG members surveyed believe Linked In is a vital tool for contractors and freelancers. It is a great way to keep in contact with previous colleagues, contractors and clients but it is also great for listing your skills, the role you are looking for and your current availability. A simple networking tool, you can also join relevant groups’ specific to your skill set or sector you would like to contract in.

By spending time now reconnecting via the internet, you may find yourself landing your next contract role.

Do you win most of your contracts through recommendations by others or keeping in contact with existing clients? We’d love to know how important you think networking is when securing a new contract.

A contractor will often sign a contract before they start working for a client. Payment terms are often stated in that contract so once an invoice is raised for your work, the client should honour the payment terms and settle within that time. But what if they don’t?

The response from a legal consultant answering the contractors question on Freelance UK said that by not paying within the payment terms, the client was in breach of contract and they would be at liberty to terminate on the grounds of the breach.

He also added that unless the contract has a specific provision for interest on late payments, they may also be entitled to fixed payments and interest under the Late Payment of Commercial Debts (Interest) Act 1999. The fixed payment is £70 for an invoice between £1,000 and £10,000, and interest is at 8.5%.

This made us raise the question; do your clients pay on time? If not, what action have you taken with the client?

This made us here at Independent Contractor Services (ICS) ask the question; do clients expect you, as a contractor, to work longer hours than a permanent employee?

The contractor asked for help via the Shout 99 forum and already other contractors have responded with their experiences. One contractor commented that with one client, he felt the permanent employees and managers expected him to work longer hours because he was earning “mega bucks”.

Contractors often work more hours than expected to meet the project deadlines without any overtime or enhanced rates. However choosing to work more hours and being expected to work more hours are two different things.

If you are a contractor working via an umbrella company and you haven’t opted out of the Working Time Directive, as an ‘employed’ worker you are lawfully only permitted to work a maximum 48 hour week however if you are a contractor working via your own limited company, you may be expected to work extra hours to get the project finished.

What are your experiences? Are you expected to work more hours as a contractor than a permanent employee would?

As well as working with Government on the official guidance for the new Agency Worker Regulations, they are developing a suite of practical tools to help recruiters implement the necessary changes and seize new opportunities.

The practical support includes; training workshops, specific research on client awareness through the REC’s Industry Research Unit, mentoring sessions for agencies and clients, model contracts and a comprehensive AWD Toolkit for agencies.  Contractors who are still not clear about how the AWD may affect them could find these resources from the REC useful also.

Sam Strange, Director of Business Support within the REC’s Academy for Business says:  

“In conjunction with the REC’s high-profile lobbying campaign, work has been going on behind the scenes to develop to kind of practical tools that will help recruiters get to grips with potentially complex regulations. As we shift into ‘implementation mode’, our priority is to help recruiters plan ahead and engage with their clients and workers. Implementing equal treatment measures will be a challenge.” 

Also this week, an agency group announced that they were challenging the legality of part of the draft regulations to give agency workers similar rights as employees. According to the Association of Recruitment Consultancies (ARC), it would appear that the draft regulations contain important new aspects that were not raised in the consultation process.

Still a contentious issue, Independent Contractor Services will continue to report on any developments or news stories relating to the Agency Workers Directive.

In Rahul’s seven years experience freelancing, he has a handful of clients which give him regular work and with whom he has built a close relationship. In his article, he encourages other freelancers, contractor and consultants to do the same and build up close relationships with the clients they already are working on projects for.

Rahul highlights that most freelancers, once they work it out, will realise that most of their freelancing revenue came from a small number of companies. This is the classic 80/20 rule where 80% of your revenue will come from 20% of your clients. By filtering clients this way, you are able to focus on nurturing relationships with clients that will respond by giving you projects frequently. In other words, the clients that are generating the most amount of freelancing revenue.

Once you have identified who your clients are then it is time to develop a strategy to keep them. Some top tips from Rahul include;

• Do a brilliant job – deliver exceptional skills but also don’t be afraid to develop your skills.
• Add extra value to your clients – understand key individuals within each client and communicate with them.
• Think long term – be prepared to help your clients with their individual circumstances.
• Contact your existing clients regularly – don’t lose communication with them. Contact them every month or quarterly.
• Network within the organisation – build relationships with people in the organisations.

To read the full article, visit the PCG’s website, www.pcg.org.uk

Contractors awaiting payment for work already completed are most likely to be told that their invoice never arrived, even if it was sent by registered post, the study shows.

Those clients that use these tactics have been branded as unscrupulous and unethical. David Knowles of Creditsafe. “It is bad practice and flouts the moral obligation to pay on time.” Outlandish responses from clients have been said by Knowles to be reminiscent of the ‘dog ate my homework’ schoolboy excuses.

David Knowles offered further advice by suggesting that firms and also contractors should and can take proactive steps to identify those businesses or clients that represent a poor credit risk or are habitual late payers.

Before accepting a new contract, it is important to research your client beforehand to identify whether they are already known within the marketplace as being late payers.