With IT jobs, what makes a contractor extendable, renewable?

“Renewable” is a widely-used word these days, writes Alan Watts, a service management consultant (retired), with more than 40 years’ experience as a freelance IT contractor.

Corporates wating to ‘renew’ their commitment to governance; energy companies wanting the latest sustainability buzzword in their strategy -- and more classically, freelance IT contractors wanting to stay on.

With still choppy conditions for freelance technology job-seekers in the UK, being renewed or the oft-used equivalent -- ‘extended’ i.e. getting a freelance IT contract extended, should never be far from mind.

That’s very much the case for techies who are in-contract.

‘Get contract renewal.’ Absolutely - but what is it?

Getting renewed at the end of a technology contract is a mark of success.

It’s a recognition that you have delivered everything the client has asked for and they are happy to have you continue to do more of the same.

Which means not getting renewed can be seen as a kind of failure.

What about non-renewal, or not being extended?

Non-renewal can happen for a lot of reasons. However not all of them bad.

For example, I was usually hired to design and then build a service or improve the performance of an existing service. Once that was done to the client’s satisfaction, I was no longer needed, so renewal wasn’t an option.

But even if your work has a clear ‘end point,’ you should still keep the door of contract renewal open.

It is possible the client will need your services again, perhaps in another area of the business. That would require a new schedule, if not a new contract, but if the pay is good and the brand is adding to your contractor CV, that has to be a good option. Right?!

Benefits of contract renewal

However, in more usual circumstances, contract renewal is something to be desired.

While I can attest to a big advantage of contracting or freelancing in the UK technology sector being the varied and different work it throws up, renewal goes the other way.

Renewal is advantageous because it gifts the freelancer a steady and reliable income stream by staying put at one client.

And especially in today’s market, or let’s say you’ve got a big financial commitment in your personal life you suddenly need to meet, that stability and reliability can be crucial.

How to increase renewal chances

But have you thought about how to improve or increase chances of IT contract renewal, at the end of your current contract?

1. Reliability

Most obviously, you should deliver the work which the client wants to the quality they want -- in the timeframe they want. And do all that consistently.

Like any business your best way of keeping your customers coming back is always to have what they want, when they want it.

So reliability is the key element to succeed at contract renewal.

2.  Be liked, professionally, and add value

It is important to have a good working relationship with your fellow workers; be they other contractors or the client’s staff.

I emphasise ‘working’ because you don’t want to risk your IR35 status by becoming “part and parcel” of the client’s organisation, as has been shown in several IR35 cases which went against the taxpayer and in favour of HMRC.

So only do the work as defined in your contract. That said, don’t be averse to offering help, advice and guidance to others -- if and when necessary.

A bit of added value can go a long way to helping your chances of renewal or extension.

Is renewal a good time to negotiate a rate rise?

Speaking of added value, renewal is often seen as a time to negotiate a rate rise or pay increase.

This can backfire if you get it wrong.

For one thing, you are already being paid to do the best job possible, and your client’s budgeting isn’t interested in your personal circumstances.

To argue for a rise means demonstrating you are delivering above your role, perhaps saving costs, saving time, or taking on additional responsibility.

What you must not do is make a rate rise a condition of renewing -- which more often than not leads to no contract at all!

Don’t be on auto-pilot at contract renewal stage

There is another side of the coin. Do you really want to renew? There are many factors that might mean you don’t.

You simply might not like the work for any one of a dozen reasons. It happens.

The work may have settled into a rut that isn’t taking your career forward. To be a successful IT contractor you have to keep your skills up-to-date and aligned to current technology trends. In our world of cloud services, for example, designing monolithic standalone services is not the way forward. Exposure to new technologies and ideas is vital to you finding continuing work.

Other reasons to refuse renewal

You may have found work that is more convenient personally, or pays better or widens your skillset.

This is always possible since you should always have an eye on the tech jobs market, and should be looking around at opportunities, as the end of your current contract approaches, anyway.

What if a golden opportunity arises before renewal?

Yet if a golden opportunity comes up mid-contract (which does happen), don’t assume your contracted notice period will bail you out!

It quite probably will be frowned upon by the client who will invariably not offer you any further work, ever again. Better to negotiate a ‘clean’ ending that suits everybody -- including your potential new client.

Conclusion: Should I renew my tech contract?

As renewal can take quite a bit of tact, negotiation and skill, multiple renewals on your CV will certainly boost your professional standing as an independent IT consultant. Just be aware that there are times when it might prove more beneficial to jump back into the job market, rather than ‘standing still.’ But the beauty of freelance IT contracting? Only you can really make that decision, and what’s right for you in one quarter won’t necessarily be right a quarter later.