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This
module will address common issues and techniques with
project and contract work. It is designed to empower both
self-employed entrepreneurs and employees venturing outside
the company for projects on the side. The topics covered
in this course will address issues with real life application
and language.
Study this material as you would a proposal you are writing
or a project you are bidding. Understand every element
and how it fits into the big picture of the project or
how a situation may apply to you. Consider it practice.
You may find elements that do not fit your style or approach;
consider these opportunities to develop your own approaches
and techniques. No two projects are alike and constant
adaptation is needed.
Is Independent Contracting for Me?
A definition of an entrepreneur is: "A person who organizes,
operates, and assumes the risk for a business venture."
Contract work is entrepreneurial in nature. You make commitments
to clients for your time, quality, and deadlines.
To help you evaluate if contracting work is for you, consider
the alternative, working as an employee. While the experienced
entrepreneur may easily dismiss the pros of employment
with another company, you may be on the fence. There is
a great deal of comfort in that regular paycheck and the
benefits your employer provides.
Employee vs. Self-employed
To help you evaluate the question, "Is independent contracting
for me?" consider this list of pros and cons for each.
| Employment
Pros |
 |
Employment
Cons |
|
-
Regular paycheck·
- Health & retirement benefits·
- Office comradery
- Vacation time· Company car
- Paid
education certification
|
|
-9-5
- 5 days
- Monotonous tasks
- Commuting / gas
- Corporate ladder
- Job insecurity / unemployment
- Meetings
- Business travel |
| Self-Employment
Pros |
|
Self-Employment
Cons |
-Work
for yourself
- Interesting work· Flexible hours
- Choose your projects
- Choose your associates·
- Home office & other tax deductions·
- Higher hourly rate |
|
-
Irregular paycheck
- No office comradery· Estimated tax payments
- Project liabilities
- Collecting money
- Production cash flow
- Dry spells |
Exercise:
Compile an extensive list of pros and cons for each employment
situation. Try to maintain a balance in the number of
items to keep the list from being biased toward one or
the other. Rate each item (i.e. 1-5) based in its importance.
Sum the ratings deducting the cons totals from the pros
totals. Which one fits you better?
Best of Both Worlds
You may find yourself in a situation where, as an employee,
you are presented with opportunities to do projects on
the side. This is a great way to try out a few smaller
projects or make the move gradually from employee to self-employed.
However, you should be aware of your legal situation.
You may have signed a non-competition agreement as part
of your terms of employment. There are also professional
ethics involved as you inevitably run the risk of doing
some of the project work on your employer's time. See
the PPC Module Engineering
Ethics for a more detailed discussion of professional
ethics.
Purchase
the complete set of online modules
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