Table of Contents Introduction Categories of Work Types of Work Working Semi-Independently Working within Large Corporations

Types of Work

Work on Demand (As–Needed)

This is an interesting category of work in which a contractor is put on a retainer by client company. The retainer guarantees the client company a specific number of hours from the contractor each year. The client calls you in as they need your services, and when the retainer has been satisfied, you bill for the additional hours. This is a good way to guarantee a certain amount of cash flowout through the year.

Fixed Bid

With this method, you estimate a piece of work for the client company, telling them what you would charge to do a job. Generally, neither the scope or the price is renegotiated after the bid is in the client's hand.

Hourly

Many consultants and contractors like to work on an hourly basis, where the company pays you per hour worked.

Consulting by the Day

Some consultants charge a "day rate." This is the way most consulting firms charge time, but can become a problem when you've based your day rate on an eight hour day & you're regularly putting in twelve hours.

Fixed Term

Fixed term contracts state that you will work for the client company for a fixed duration of time, and what they will pay you for that service. Sometimes clients expect exclusive rights to your services when working under this type of contract. In that case, it's an exclusive contract for services.