Thread: question about contract work

I've been offered and accepted a position at another company. This is really going to leave the company I'm at now in a real bind as they only have one other edm guy and he isn't quite up to speed with everything. What I thought of doing was offering to go in and do some part-time programming and set the machines up until they can get a replacement. What is a reasonable pay rate for doing something like this? Anything else I should be considering? Thanks

I have done the same. $45. to $60. per hour as a subcontractor. If you have to travel may want to include that per mile. IMO that will be alot cheaper for them to hire you as opposed to training from the machine builder. Its a good deal for them and maybe you.

This probably doesn't need to be said, but make sure that your former employer knows that you have a new employer that comes first. Don't put your new employer in a pinch trying to cover for your old. I'd make sure to put availability times down on paper, just to cover yourself. That way you don't find yourself hung out to dry in the middle. Also, talk to your new employer and make sure that he knows what you're doing and why. Better to let him know this up front rather than him finding out second-hand later.

I agree with toolmaker35.Relations between traders must be clear :-) I also had the opportunity work on the same principle.My employer always knew about it and agreed.Here are other costs my tax is 13-15$ per hour.

I'm not sure what kind of payrate your previous employer offered, but a good starting point for contract work would be to figure what you made there as gross (including benefits, SS, medical, ect.) and add 20-30%. Also, unless they are right around the corner from where you live, I'd include a minimum hourly fee, i.e. 2 hour minimum per instance. This will cover you from all of the little nickel & dime problems that just can't be handled over the phone. Helping over the phone...if I were in that situation, I'd keep that free. It'll keep you on good relations with them in case something tanks at your new employer. Never hurts to have a "plan B" to fall back on.

thanks for the info. Should I write up some sort of contract or agreement and if so, do any of you have a copy of one I could use as a template?

I would be real carefull. I dont know your situation but I have done contract work for former employers after I left and the new employer was pissed about it. They expected loyalty when I took the job not just a hired hand. I hate the feeling of being owned so I quit and did contract work for both of them.

My old employer was my first consulting customer. I didn't have the complication of a new employer however... I can definitely see where that could become an issue.

I charged $60 an hour with no drive-time fee (They are 2 minutes from my house) and kept phone calls free at first. The phone calls became a serious issue. Two or three a day... The problems would be complex and I would try to set up a time to come in, but their new guy was told, "Do as much as you can over the phone and avoid him coming in as much as possible." I began to understand the OEM's issues with talking people through a 2 hour repair... Then the new guy began to blame scrapped parts on advice I had given him over the phone. Parts I had run for years without issue. They started losing customers and accused me of taking them to other EDM houses. From that point on, any free advice was done through email. I would still see two or three a day. I began to take more and more time to respond to them. Always polite...always offering to come in and show the operator in person how to fix or run certain parts. I would also always cc his boss.
The long and the short of it was, I left on good terms...I was friends with my superiors when I left...The new guys inefficiencies put a strain on that...If I could go back, I don't think I would have done it. At least if I did, I would insist that a superior be there when all training took place. That way they could witness first hand where the issues were.

Also, you old employer will most likely want you to have an EIN# that they can bill against. $60 an hour adds up quickly. They will most likely not want to keep you on payroll and will want the credit of using a subcontractor. EIN's are obtainable through the Federal office in Columbus for $125. I would recommend going LLC. That's a personal recommendation however.
Feel free to email me directly if there is anything I can do to help you through this.
jaycrumb@sbcglobal(dot)net

BTW, these problems NEVER arise now with my new customers. For some reason it was only because I had been an employee of theirs. New guy resented the fact that I was "still around" and ownership felt like my not being there full-time and the fact that my bills were so hefty, was some kind of betrayal. I would also add that seeing this guy mess up MY parts and break MY machines also added to it. None of that is ever an issue with new customers... They take you as an outside expert and I obviously have no personal ties to their equipment. In fact, I rather enjoy it when they crash and need the upper-head completely rebuilt....

Jay