Advice for first time "contractor"

I've been programming (in FoxPro) for around 10 years and working at it
(W2) for 8 or so. I've had quite a few jobs. I am sometimes asked if I
want to work as a contractor or as an employee and I have always said
"employee" mainly because I've always done that. I figured I could
probably easily take those jobs on a contract basis and figured that
someday I'd have to (or even want to) but that day hasn't come until
today.

A recruiter got my resume off an employment recruitment site and has
been lining me up for a position at one of their client companies and
yesterday I was told that the decision has been made that I get the job
(starting Monday). I am to be paid on an hourly basis as a contractor.
They emailed me papers to sign yesterday. Generally, when I sign
preemployment papers I scan them and sign, have a general idea what it's
about, the legalese notwithstanding. Since I was at home this time, at
my "leisure," I took the time to read this stuff carefully. Most of it
looks pretty OK, although I'm rather inexperienced at this, obviously.
There's a nondisclosure agreement, a W9 form - pretty standard stuff.
Then there's the 5 page contract with an "Exhibit A" tacked onto that,
being a purchase order for my services. That's a bit weird from my
perspective, but probably standard, I figure. It states my hourly rate,
basically, with a sentence or two with yet another guarantee by me that
I won't make any agreements with the 3rd party for a year after the
completion of my assignment, things of that nature. In the contract they
want me to guarantee that if I do start working directly with their
client, I will fork over 20% of my salary. I guess I'm OK with signing
on that. However when I got to paragraph 12 in the contract, I did a
double take:

12. INSURANCE. Contractor will obtain for itself and its personnel
before providing services, at its own expense, comprehensive General
Liability insurance coverage for projects covered by this Agreement, for
limits of liability not less than $500,000 and will name <insert name of
recruiter here> as an Additional Insured, provide a copy of the binder
and policy to <insert name of recruiter here>, and hold <insert name of
recruiter here> harmless for any damages or expenses, including
attorney's fees, incurred as a result of misconduct of Contractor or its
personnel involving <insert name of recruiter here>, the TPU (third
party unit), or any customer of client of the TPU.

Now, that's something I wasn't prepared for and I figure I'll be calling
them first thing in the morning - their office won't be opening for at
least 3 hours. You people with experience, can you tell me what this is
about? Are they going to waive this for me? I can't believe that they
recruited me with the assumption that I already have an insurance policy
of this nature and didn't ask me up front. I'm a computer programmer,
and they were careful to check out my references before making me the
offer. In the past, the trust inherent in that type relationship has
floated my boat.

Please, in addition to answering that specific question, can I get some
tips and hints to give me a more solid footing in embarking on my first
gig as a contractor? I've had quite a few contractor-like assignments,
but never actually been on a contract basis. I always figured it was
going to be principally a matter of filling out some different or extra
IRS forms, but I guess there's more to it. For one thing, it looks like
I'm going to have to manage my own withholding of federal and state
taxes and SS. Do I do that at tax time or do I have to manage that
during the work year? This job is 6 months+ (I'm told it's funded for a
year, possibly with extensions) but I will be on a trial basis,
especially at the start. The TPU is contractually entitled to send me
home for any reason at any time. The contract seems to carefully
stipulate that I'm entitled to zero benefits, just my hourly rate with
no possibility of extra compensation for overtime, no possibility of
being compensated for training of any kind, etc. I am in California.
Thanks for any help.
.

Relevant Pages

  • Re: First contract, am I being stiffed?
    ... ::> The contract was to be for 6+ months, probably to be renewed at least:> once. ... :> My contract was with a recruiter, and it stipulated that the client ... :> that the client has decided to let me go. ... :> has refused to pay for my services. ...
    (sci.research.careers)
  • Re: First contract, am I being stiffed?
    ... expectations you'd A) continue to work, and B) get paid, because there's no job security in today's world! ... My most recent contract ended after only six workdays. ... After 2.5 days on the job, the recruiter called me and asked how things were going and we had a little conversation and I told him truthfully that I thought they were going fine. ... has refused to pay for my services. ...
    (sci.research.careers)
  • Re: Advice for first time "contractor"
    ... > I won't make any agreements with the 3rd party for a year after the ... > want me to guarantee that if I do start working directly with their ... On what basis will they do this when the job (contract) has come to an end? ... > recruiter here> as an Additional Insured, provide a copy of the binder ...
    (microsoft.public.fox.programmer.exchange)
  • Re: Advice for first time "contractor"
    ... Are they paying you on a W-2 basis? ... That insurance clause is not standard. ... DO NOT sign the contract until you have done so!!! ... > recruiter here> as an Additional Insured, provide a copy of the binder ...
    (microsoft.public.fox.programmer.exchange)
  • Returning the Pineapple* [long and me*me*me]
    ... agency V on contract C, subcontracted under agency N) since 1997. ... In the meantime, employee G of company D, who had taken my place, left ... Home life--When David and I split up in 2005, ...
    (soc.motss)
Loading