Ok, there has been a lot of activity on this thread since my last response so I'll try to get everything I can in here.

1. Contracts. My contracts are actually usually only a page or so and just detail the expectations of the job (what I'm doing, how much I'm getting paid, travel expenses and when I get paid). The actual specification is usually an attachment on a quoted job where other jobs are a block of time. I write these contracts up myself and my clients usually have some big 10+ page standard contract for me to sign (my clients are all hospitals and labs).

2. On a quoted job, if I run over the time I end up eating the cost. I have a spreadsheet I have developed that I use to track each client and how close to the quote I come. Estimates are just that, estimates. However, you can get a good feel over time on how close you come based on the client. My spreadsheet helps me track this. I have some clients where my estimates are off by 15% which is money I lose. For these clients, I have been slowly bumping up my quotes until I get to the 0% variance.

3. Getting into the contract industry can be very tough. I've been very lucky because I'm in an industry where my competition is poorly skilled and it's very proprietary. There are likely less than 50 people in the world who can do what I do well. Although there are likely a few thousand in the industry who are useless. For people contracting in more common environments (e.g. Java, .Net, Web Design, etc.) you are going to be fighting a massive hoard of people with the required skills and experience. You also suffer more on rate due to countries like India and their armies of programmers who will code for food. This doesn't mean you can't get into the industry and do well, you just need to find a way to show you are the right person for the job at your rate. Everyone is going to ask you "Why should I pay you $$$$ when I can get the same for $?". You need to have a convincing answer or good blackmail material.

4. Bench time can be tough on the wallet if it goes too long. However, it can also be a good thing. Take your bench time to strengthen your skills. Additionally, you can also take this time to work on any product ideas you may have. Come up with something you can sell. Better yet, come up with something you can sell as a base product to your clients and offer consulting services to extend it to their business model.

5. Don't forget sub-contracting in the tough times. If you are good, consulting companies will keep giving you work. They don't like people who are a hassle. If you can go to a job and give the quality of service that results in constant praise from clients, a consulting company will keep calling you back. You won't make as much as directly working for the client, but your bench time will be less. I have a number of sub-contractors working for me. I had to cut one off earlier this year because he became a hassle. I don't have time to babysit, that's why I pay what I do (which is about $90/hour). If a contractor becomes a bother, I replace them. If they are good, I put them ahead of everyone else.

6. If you are a new graduate trying to get into contract work, you will have a hard time justifying a large wage in many cases (not all). High rates usually come with experience. As a contractor, my job isn't just to code what I'm told. My job is to use all of my experience to ensure that the project I am on doesn't fail. That sometimes means I even have to manage my clients employees (I did that for two years).

7. I'm not sure if I have said this before or not. Never, ever, ever give away your time! I've seen so many people try the "I'll work on the first project for free to prove myself". It's not a good move. Not only do you lose financially, clients get the wrong message about you. You want to be seen as the best. Begging for work just shows your desperation.

I want to talk more about point 7 (because everyone loves how I can write such short posts.....I know, I can get going and going).

Anyways, when I'm at a client site, I show my client a great deal of respect. They are my customers and I want them to be happy and I want my work to directly contribute to their success.

However, when I see other consultants, I usually see them running around like whipped little dogs. All yes sir, how high can I jump sir? Then, when they are alone among each other they start pounding their chests and talking about how great they are. These people have no respect from the client or each other.

I do everything I can to make things work for my clients, but I do not snivel like most of the consultants I see. I'm confident in what I do and I never make promises I can't keep. If a client asks me a question I don't have an answer to, I'll tell them I don't know but I'll look into it. If a situation comes up where everyone is wrong and I have a solution that works, I let the client know even if it is a cheaper solution.

Always think long term. Please your client today and they will come back for more. But always respect yourself and act like the best.

John

I don't agree on the "never work for free" principle. I can see your point that giving free work to client X means that they think they can get more free work from you... but if it's a way to get you commercial experience in a new area/technology you want to break into, it can pay off. e.g if you're a Java guy it can be hard to get a first contract with .NET when other people have experience there - we know in many cases a good developer can transfer skills quickly but most people see "5 years .NET" and prefer it to "I am doing some hobby coding in .NET to get good" :)


On a serious note, would you mind if I contacted you to discuss potential subcontracting you might have in the future? I'd rather check first than spam you with PMs/emails unasked.