So a question for you guys that work as consultants...

Alright, I've had an interesting situation develop.

A friend does some work as a sub-contractor for a consulting firm. Recently, he had a project that he needed someone on site, but wasn't able to go himself. He asked me if I'd be willing to fly out to the site for a few days to be his eyes, ears, and hands, and got approval to bring me on as an additional sub-contractor.

I said yes, as it was a wonderful opportunity, both to make a little extra cash before the holidays, and just for the entire learning experience.

I've done contract work before, but it's always been local. This was my first contract that involved travel.

I'm wondering what's considered normal as far as expensing goes. For example, I needed internet for some research before I arrived on site, which included remotely accessing the clients systems. Since I'm under an NDA for the project, using the hotel's business center computers was out of the question, so I charged access to the hotels wireless to my own card. What about meals? And parking for my car at my point of origin?

This was all done very last minute, I basically had less than 36 hours between when this was broached and when my flight left. I had initially thought this was a one-shot deal, but my presence on site seems to have cleared the logjam the project was undergoing, and this looks like it's going to lead to other opportunities for like short term contracts.

If someone could give me a decent primer for things I need to look out for, or things I should be doing for things like this, I would appreciate it. I want to make sure I don't get screwed, or that I'm out of pocket for things I shouldn't be. Any advice is greatly appreciated.

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Comments

dynamik

This isn't contract work, but our typical travel includes airfare, rental car, hotel, any related charges (parking at the airport, hotel internet), and a $70/day per diem for meals. Be sure to sign up for all the "clubs" for your airline/hotel/rental car company of choice, so you start racking up points for perks.

Unrelated, but I will be in Milledgeville Mon-Thurs next week. Lets get a drink if that's close to you.

Forsaken_GA

dynamik wrote: »

Unrelated, but I will be in Milledgeville Mon-Thurs next week. Lets get a drink if that's close to you.

Ah, you'll be a couple hours south of me, I'm in the Atlanta burbs hehe

L0gicB0mb508

Have everything in writing. Before doing any further work, you will want a contract explaining how you will be reimbursed to travel, things that are needed to complete the work, and etc. Also determine how you will be handling the taxes on this. Will you actually be employed with your friend in a company, or will you be receiving a 1099?

Forsaken_GA

It'll be a 1099, the tax issue was the first thing I hashed out after agreeing on an hourly rate. As I said, I've done contract work before, so I know how to handle the tax aspect of things. This is just the first time I've done any contract work that involves travel

dynamik

Forsaken_GA wrote: »

Ah, you'll be a couple hours south of me, I'm in the Atlanta burbs hehe

I didn't think I'd be near civilization...

Forsaken_GA

dynamik wrote: »

I didn't think I'd be near civilization...

Eh, spend enough time in Atlanta, and you won't think of it as civilized. I hate the city. My company moved it's facility out to Marietta earlier this year, so I'm very thankful that the only time I have to set foot in the city anymore is when someone needs to be on site due to something related to our core routers, or our DWDM gear.

Milledgeville's not bad though. Too bad you're not going to Savannah instead though. That city, I love.

eMeS

I find that it's different from situation to situation.

Most often I attempt to roll everything into one number. In fact, on Friday I provided a quote to a customer for an ITIL gap analysis. It's a single number in terms of cost, but very clear about the time frame over which the work will occur. I just do my best to calculate what I think the daily expense will be in a case such as this one, and then tack it onto our standard rate. I really don't like to nickel and dime.

Some customers I work with have specific expense policies. They want expenses accounted for separately. Some other customers will prepay airfare and hotel, but we have to submit parking, tolls, rent car, etc... I've even been in situations where the customer will issue a credit card branded in their name, provide me with access to their T&E system, and expect all expenses to flow through that.

I really don't trouble any customers to pay for meals, as I have to eat whether or not I'm working for them, and the government is kind enough to let me deduct a portion of those expenses.

The advice above about having a strong contract is sound. Pay an attorney to write up a standard contract for you that covers these things. I almost always expect companies that I work with to want to make agreements on their own paper, however you'd be surprised at some of the companies that aren't prepared for this and will gladly sign my contract.

MS

Forsaken_GA

You're actually one of the guys I wanted to hear form, eMeS, because I know you've been on both ends of it.

The contract I signed for this job was fine, it was fair to both sides, and clearly limited in scope (ie, it was only valid for the period of the contract). It was just a little vague on the subject of expenses. The primary contractor handled my flight and travel arrangements, and I agree with you on the subject of meals - I'm eating one way or another, so it doesn't feel right to try and reclaim that money... especially since lunch was paid for by the client each day. I'm a fairly frugal person, I don't like to spend money where I don't have to, but the money I do have to spend I regard as my expense.

But certain things, like my airport parking, are things I regard as an avoidable expense, or it would have been, if I'd had slightly more time to plan things out. As it happened, my scheduling was very tight - I left my normal job Weds morning at 9am, my flight left just after noon, so I only had a few hours to make it to the airport, and then make it through security (which at Hartsfield, is about an hour in and of itself) and make it out to the terminal. When I came back last night, my flight landed at 7pm, and I had to be at my normal job 2 hours later. So I really had no choice but to leave my car at the airport, and even using the economy lot, 4 days is a chunk of change I'd have rather not spent.

I do like the advice of just quoting a single price for the entire contract length. Do you just roll you travel into that as well and do your own booking?

I just learned a long time ago that listening to the voice of experience tends to be a good idea, and this is one area where I wanted to make sure my inexperience didn't bite me in the ass.

If this does become a somewhat regular thing, I will definitely sit down with an attorney and hash out a standard contract for myself, or at the very least, review the contract I'm being given to see if there's anything it in that could potentially hurt me.

eMeS

Forsaken_GA wrote: »

I'm eating one way or another, so it doesn't feel right to try and reclaim that money... especially since lunch was paid for by the client each day.

I had dinner one time with a consultant that wasn't working for me. He spent most of the meal annoying me by complaining about how he was "limited" to only $100 per day for meals.

All this while he was taking down ~$200 per hour.....

I've had people choose to not work with us because we won't reimburse for meals....Now I know that in some cities $100 doesn't get you very far on meals, and definitely not in many hotels, but still it's strange, I feel like for what we make we can cover our own food....

Forsaken_GA wrote: »

But certain things, like my airport parking, are things I regard as an avoidable expense, or it would have been, if I'd had slightly more time to plan things out. As it happened, my scheduling was very tight - I left my normal job Weds morning at 9am, my flight left just after noon, so I only had a few hours to make it to the airport, and then make it through security (which at Hartsfield, is about an hour in and of itself) and make it out to the terminal. When I came back last night, my flight landed at 7pm, and I had to be at my normal job 2 hours later. So I really had no choice but to leave my car at the airport, and even using the economy lot, 4 days is a chunk of change I'd have rather not spent.

I agree, that would normally be something that is reimbursed. Let me tell you a secret though...it's often less expensive to have a sedan pick you up and drop you off both coming and going than it is to park at an airport terminal for an extended amount of time...

In the absence of a clear documented and agreed policy simply submit the expense for reimbursement as you would other expenses.

This really falls under the it's easier to ask forgiveness than permission rule.

MS