Contract Length: The average contract lasts six months. Some, however, may last only a few months while others may extend several years. The scope of the project generally determines the length of the contract.

Number of Hours: Many contracts require a normal forty hour work week. Others may allow part-time hours or overtime.

Location: Typically, consultants perform all work at the client site. Some contracts may allow for off-site work, even in the consultant’s home if properly equipped.

As more and more companies are learning to effectively leverage the use of contract labor, the percentage of professionals employed as contract consultants is constantly growing. Contingent employees currently account for approximately 13% of the U.S. work force. This percentage makes up over 18 million employees. Analysts project that these numbers will grow over the years. U.S. Bureau of Labor Statistics.

Companies that employ contract labor enjoy several advantages. When a project can be completed in a fixed period of time, it makes financial sense for the company to hire workers only for that period. By contracting labor rather than making the long-term commitment to full-time employees, a company can remain financially flexible. In addition, the decision to hire only those professionals who possess the necessary skill set allows the company to remain technologically up-to-date without committing valuable resources to updating employee skills. In an evolving marketplace, these are critical factors to a company’s success.


The company’s advantage translates into benefits for the consultant. These benefits include:

Earning Potential: A consultant is paid on an hourly basis on a significantly higher pay scale than a full-time employee would earn for performing the same work. When companies hire consultants, they are leveraging a particular highly-developed skill for a fixed period. Companies are willing to pay a premium for the consultant’s expertise and the flexibility of the contract arrangement.

Flexibility: The variability of contract length, location, and work hours allows the consultant the flexibility to accept only those contracts that best suit their changing personal and financial needs. 

Diversity: Consulting especially lends itself to the technological marketplace, where new technologies are constantly being introduced. By not being limited to a single workplace for a long period of time, a consultant is exposed to a variety of different platforms, applications, and environments. This diversity presents new learning opportunities, perspectives, and challenges that in turn lead to greater earning potential.

Important Considerations:

Although the earnings potential for a consultant is significantly greater than that of a full time employee, with the additional earnings come additional costs. It is important to factor these additional costs into the income equation.

Downtime: Contract consultants are not paid for the time between assignments. 

Benefits: The consultant must provide his or her own benefits.

A contract consultant needs to be constantly networking among colleagues, clients, business associates, and former employers. The greater the exposure to potential contract opportunities, the lesser the risk of unwanted downtime.

Marketing yourself involves understanding a rapidly evolving marketplace. It requires keeping informed of companies’ projects, needs, and hiring cycles. When your personal network has been exhausted, marketing yourself often requires such unpleasant tasks as cold-calling unfamiliar companies. The process is a full-time job in itself.

It is the goal of the Summit team to serve as the marketing arm for your career. Our representatives develop a long term working relationship with each consultant, a relationship that continues beyond the length of the initial contract. It is our objective to understand your personal and professional needs, and to effectively market your skills to only those companies that best suit these needs. This includes transferring your resume into a format preferred by hiring managers and discussing with you before each client interview how to best present your skills and experience. Our only objective is to find the right fit, every time.

Summit achieves this goal by developing a partnership with each consultant based on knowledge, commitment, and communication.

Knowledge: Applying our extensive network of industry contacts and marketplace knowledge to position you within only the companies that best suit you.

Commitment: Maintaining award-winning standards of customer service by basing the partnership on a thorough understanding of your needs and goals.

Communication: Maintaining a relationship before, during, and after the contract; ensuring that you understand and are comfortable with each step of the hiring process.

The first step toward beginning a career in contract consulting is contacting a Summit recruiter.

The Resource Planner assigned to you is not merely a "recruiter". He or she specializes in your particular skill set and geographic location and is dedicated to maintaining a long-term working relationship with you. All Summit Resource Planners have been thoroughly trained and tested in the technology that makes up the skillset they represent. In addition, they are required to keep informed of developing technologies and trends in the marketplace. This training and dedication to staying one step ahead of the marketplace allows all members of the Summit team to best market your skills.

The sooner you forward your resume, the sooner Summit can begin placing you on contract assignments. Before submitting your resume to hiring managers, the Resource Planner will thoroughly discuss the opportunity with you, including pay rate, length of contract, location, and tax status. In addition, Summit will check at least three references. A Resource Planner will walk you through the entire process, from submitting your resume to accepting a job offer.

Contract Consultants fall into one of two categories, outlined below. 

W2 Status: More and more companies are requiring that consultants be paid on a W2 basis. W2 is suggested for those consultants new to the business. It simply means you will be paid by Summit with the appropriate state and federal taxes and social security deducted from your payroll check. 

1099 Status: This status is available to only those consultants who are incorporated and meet the IRS regulations for incorporation. Rather than having deductions taken from his/her paycheck, the consultant is responsible for taxes and social security. To qualify, you must meet these minimum requirements: be incorporated, have a federal ID number, and obtain liability insurance. 

The IRS regulations for obtaining 1099 status are complex. Summit recommends you consult an accountant who can assist you in understanding and complying with the guidelines. 

Some IRS Laws 

The traditional tests to determine whether a worker is an employee or independent contractor involve the concept of control: Are the services of the worker subject to the Taxpayer's will and control over what must be done and how it must be done? In Revenue Ruling 87-41, 1987-1 CB 296, the IRS developed 20 factors used to determine whether a worker is an independent contractor under the common law. For further information about tax status, contact the IRS or consult an accountant.

1. Does the principal provide instructions to the worker about when, where, and how he or she is to the work? 
2. Does the principal provide training to the worker? 
3. Are the services provided by the worker integrated into the principal's business? 
4. Must the services be rendered personally by the worker? 
5. Does the principal hire, supervise and pay assistants to the worker? 
6. Is there a continuing relationship between the principal and the worker? 
7. Does the principal set the work hours and schedule? 
8. Does the worker devote substantially full time to the business of the principal? 
9. Is the work performed on the principal's premises? 
10. Is the worker required to perform the services in an order or sequence set by the principal? 
11. Is the worker required to submit oral or written reports to the principal? 
12. Is the worker paid by the hour, week, or month? 
13. Does the principal have the right to discharge the worker at will? 
14. Can the worker terminate his or her relationship with the principal any time he or she wishes without incurring liability to the principal? 
15. Does the principal pay the business or traveling expenses of the worker? 
16. Does the principal furnish significant tools, materials and equipment? 
17. Does the worker have a significant investment in facilities? 
18. Can the worker realize a profit or loss as a result of his or her services? 
19. Does the worker provide services for more than one firm at a time? 
20. Does the worker make his or her services available to the general public?