Talent Development Centre

Working Through the Contract Extension Process

Morley Surcon By Morley Surcon,
Vice-President Strategic Accounts & Client Solutions, Western Canada at Eagle

Your contract term is coming to an end, but there’s still work left to be done… or maybe there’s another project for which you’d be a strong fit… or, perhaps, the company at which you are working is cash strapped and may not be in a position to consider an extension to your contract. All these scenarios and others may be playing out for you. There are so many possible outcomes, not to mention all of the “opportunities” at other companies that begin to pop up.

What’s a contractor to do?

As an independent incorporated contractor, you are running a business. You want to do what’s best for your business, so your options must be considered based on a number of different (and sometimes competing) aspects – financial concerns, your company’s image, branding, reputation, and the interest of staff members (you). Also, you must balance all this with what’s in the best interest of your business partners and clients. After all, repeat business relies on leaving your customers satisfied. A bad reputation will propagate as people familiar with a tough situation move between companies.

Tricky scenarios pop up frequently around extension time. The following are some ideas that may make the road less bumpy:

  • Communication and transparency are key. Be open, honest and professional when speaking with your onsite supervisor and your agency partner (if there is one involved). Share your hopes, fears and interests clearly and try to remove the emotion that you might be feeling to get the best results/response. (To help with the emotion part, see the point below) Also, it is important to let all sides know if you are applying to new roles and, if it is really what you want, communicate your sincere interest in staying/receiving an extension. Everyone involved wants to avoid a situation where an extension is offered and refused due to a surprise job offer from elsewhere.
  • Start communicating early. For longer term contracts, begin a conversation with your recruiter and supervisor as much as 6, or even up to 8, weeks in advance of your contract ending. Challenges are much easier to manage if all parties have time to properly manage. If it is clear that there will be no extension, your recruiter might even be able to find you your next role and help to manage the transition from the current one.
  • If you have competing offers, my advice is to give priority to the project or client on which you are currently working. All things being considered, they are likely counting on you to see things through to the end. No amount of “knowledge transfer” will make up for losing a key member of their team. Leaving to take another role elsewhere risks your reputation and that can have long term impact to future job prospects.
  • If there will be an extension and there is a legitimate case for a rate increase, I highly recommend that you speak first with your Recruiter. There are several reasons for this. First, the Recruiter may know of opportunities or challenges concerning rate increases of which you aren’t aware. Second, companies often have a formalized process for rate increase requests and expect them to be followed. Again, your recruiter will know how to do this. Third, your recruiter will be able to help you build your case. They know what arguments might carry more weight with the customer. And, fourth, your Recruiter can have an unemotional and very candid business conversation with the customer avoiding any hurt feelings that might negatively impact your ability to work with the client going forward.
  • Be flexible. As described earlier, a business decision will have competing issues to consider. There may need to be give and take required to get the best overall result.
  • Whichever decision you make, be sure to manage your relationships with professionalism and tact; and give your best effort to mitigate any negative repercussions as much as possible. It will be noted by those observing such things and will help keep your reputation whole.

Whatever decision you make, be sure to manage your relationships with professionalism and tact; and give your best effort to mitigate any negative repercussions as much as possible.  It will be noted by those observing such things and will help keep your reputation whole.  And, remember the importance of having a positive reference on your most recent contract – the saying in the industry goes: “You are only as good as your last project reference.”  This is a good statement to keep in mind as you are exiting a project.

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