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Is it normal to have a staggered rate contract with $0/hr at one level?


Becoming a I.T Contractor - Need Advice & TipsIs background design/problem-solving time considered billable?Negotiation for trial contract pay?Addressing client's security and controllability concernsWork history verification and contract workIs changing employment term contract and asking for a per project rate in current employment good?How to calculate VAT on already given daily rate?Client does not realize how bad previous contractors work isChange in attitudes from contractor to employeeLegal obligation for agents to report contractor NI numbers to HMRC






.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty,.everyoneloves__bot-mid-leaderboard:empty margin-bottom:0;








-1















My contracting rate is a similar structure to the following (with the numbers changed):



  • $10/hr for less than 24 hours

  • $8/hr for 24 hours or longer

I have been talking with a client about some work and they want to hire me for a number of hours, but those hours are yet to be determined.



They have proposed to pay me a rate of $8, with the intention that there will be more than 24 hours of work - they expect 36 hours. However, this runs the risk that we only do a small number of hours - there is a significant chance that after 8 hours of work we stop there.



What should I say or counter propose? The mathematics of my above works out to the following, but I don't know if it's appropriate and legal to propose this as a payment structure in the formal contract:



  • $10/hr for the first 24 hours

  • $0/hr for the subsequent 6 hours

  • $8/hr for the remaining hours

Is this a good idea? Is it commonly done?










share|improve this question









New contributor




eedrah is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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  • I'd love to know why people are downvoting and if I can improve the question at all

    – eedrah
    11 mins ago

















-1















My contracting rate is a similar structure to the following (with the numbers changed):



  • $10/hr for less than 24 hours

  • $8/hr for 24 hours or longer

I have been talking with a client about some work and they want to hire me for a number of hours, but those hours are yet to be determined.



They have proposed to pay me a rate of $8, with the intention that there will be more than 24 hours of work - they expect 36 hours. However, this runs the risk that we only do a small number of hours - there is a significant chance that after 8 hours of work we stop there.



What should I say or counter propose? The mathematics of my above works out to the following, but I don't know if it's appropriate and legal to propose this as a payment structure in the formal contract:



  • $10/hr for the first 24 hours

  • $0/hr for the subsequent 6 hours

  • $8/hr for the remaining hours

Is this a good idea? Is it commonly done?










share|improve this question









New contributor




eedrah is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.




















  • I'd love to know why people are downvoting and if I can improve the question at all

    – eedrah
    11 mins ago













-1












-1








-1








My contracting rate is a similar structure to the following (with the numbers changed):



  • $10/hr for less than 24 hours

  • $8/hr for 24 hours or longer

I have been talking with a client about some work and they want to hire me for a number of hours, but those hours are yet to be determined.



They have proposed to pay me a rate of $8, with the intention that there will be more than 24 hours of work - they expect 36 hours. However, this runs the risk that we only do a small number of hours - there is a significant chance that after 8 hours of work we stop there.



What should I say or counter propose? The mathematics of my above works out to the following, but I don't know if it's appropriate and legal to propose this as a payment structure in the formal contract:



  • $10/hr for the first 24 hours

  • $0/hr for the subsequent 6 hours

  • $8/hr for the remaining hours

Is this a good idea? Is it commonly done?










share|improve this question









New contributor




eedrah is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.












My contracting rate is a similar structure to the following (with the numbers changed):



  • $10/hr for less than 24 hours

  • $8/hr for 24 hours or longer

I have been talking with a client about some work and they want to hire me for a number of hours, but those hours are yet to be determined.



They have proposed to pay me a rate of $8, with the intention that there will be more than 24 hours of work - they expect 36 hours. However, this runs the risk that we only do a small number of hours - there is a significant chance that after 8 hours of work we stop there.



What should I say or counter propose? The mathematics of my above works out to the following, but I don't know if it's appropriate and legal to propose this as a payment structure in the formal contract:



  • $10/hr for the first 24 hours

  • $0/hr for the subsequent 6 hours

  • $8/hr for the remaining hours

Is this a good idea? Is it commonly done?







contracting






share|improve this question









New contributor




eedrah is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.











share|improve this question









New contributor




eedrah is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.









share|improve this question




share|improve this question








edited 16 mins ago







eedrah













New contributor




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asked 30 mins ago









eedraheedrah

993




993




New contributor




eedrah is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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New contributor





eedrah is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.






eedrah is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.












  • I'd love to know why people are downvoting and if I can improve the question at all

    – eedrah
    11 mins ago

















  • I'd love to know why people are downvoting and if I can improve the question at all

    – eedrah
    11 mins ago
















I'd love to know why people are downvoting and if I can improve the question at all

– eedrah
11 mins ago





I'd love to know why people are downvoting and if I can improve the question at all

– eedrah
11 mins ago










1 Answer
1






active

oldest

votes


















1














It's always helpful to include a location because different regions have different norms but I am not aware of a region where it would be normal to have a contract that includes a billing rate of $0 for a chunk of hours.



Assuming that you want the end result to work out to exactly what your normal rate is, it would generally make more sense to offer some sort of "bulk discount"



  1. $10/hr for the first 24 hours

  2. $8/hr for subsequent hours

  3. A $48 discount once the total number of hours reaches 24

Assuming that the services you offer are things that the company is likely to need at least periodically, you could ask them to buy 24 hours of your time at $8/hr now with the ability to use that time on subsequent projects if they don't use all of it now. So if they use 8 hours on this project, they still pay you for 24 hours and can use 16 hours in a month when the next project comes along.





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    1 Answer
    1






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    active

    oldest

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    active

    oldest

    votes









    1














    It's always helpful to include a location because different regions have different norms but I am not aware of a region where it would be normal to have a contract that includes a billing rate of $0 for a chunk of hours.



    Assuming that you want the end result to work out to exactly what your normal rate is, it would generally make more sense to offer some sort of "bulk discount"



    1. $10/hr for the first 24 hours

    2. $8/hr for subsequent hours

    3. A $48 discount once the total number of hours reaches 24

    Assuming that the services you offer are things that the company is likely to need at least periodically, you could ask them to buy 24 hours of your time at $8/hr now with the ability to use that time on subsequent projects if they don't use all of it now. So if they use 8 hours on this project, they still pay you for 24 hours and can use 16 hours in a month when the next project comes along.





    share



























      1














      It's always helpful to include a location because different regions have different norms but I am not aware of a region where it would be normal to have a contract that includes a billing rate of $0 for a chunk of hours.



      Assuming that you want the end result to work out to exactly what your normal rate is, it would generally make more sense to offer some sort of "bulk discount"



      1. $10/hr for the first 24 hours

      2. $8/hr for subsequent hours

      3. A $48 discount once the total number of hours reaches 24

      Assuming that the services you offer are things that the company is likely to need at least periodically, you could ask them to buy 24 hours of your time at $8/hr now with the ability to use that time on subsequent projects if they don't use all of it now. So if they use 8 hours on this project, they still pay you for 24 hours and can use 16 hours in a month when the next project comes along.





      share

























        1












        1








        1







        It's always helpful to include a location because different regions have different norms but I am not aware of a region where it would be normal to have a contract that includes a billing rate of $0 for a chunk of hours.



        Assuming that you want the end result to work out to exactly what your normal rate is, it would generally make more sense to offer some sort of "bulk discount"



        1. $10/hr for the first 24 hours

        2. $8/hr for subsequent hours

        3. A $48 discount once the total number of hours reaches 24

        Assuming that the services you offer are things that the company is likely to need at least periodically, you could ask them to buy 24 hours of your time at $8/hr now with the ability to use that time on subsequent projects if they don't use all of it now. So if they use 8 hours on this project, they still pay you for 24 hours and can use 16 hours in a month when the next project comes along.





        share













        It's always helpful to include a location because different regions have different norms but I am not aware of a region where it would be normal to have a contract that includes a billing rate of $0 for a chunk of hours.



        Assuming that you want the end result to work out to exactly what your normal rate is, it would generally make more sense to offer some sort of "bulk discount"



        1. $10/hr for the first 24 hours

        2. $8/hr for subsequent hours

        3. A $48 discount once the total number of hours reaches 24

        Assuming that the services you offer are things that the company is likely to need at least periodically, you could ask them to buy 24 hours of your time at $8/hr now with the ability to use that time on subsequent projects if they don't use all of it now. So if they use 8 hours on this project, they still pay you for 24 hours and can use 16 hours in a month when the next project comes along.






        share











        share


        share










        answered 7 mins ago









        Justin CaveJustin Cave

        37.5k9116144




        37.5k9116144




















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