Subcontractor -loss of a client to another firm.

Subcontractor -loss of a client to another firm. Recently, the company for which I am employed as a subcontractor lost a client.... the contract was awarded to another firm... low bid award. After a few months, the company that was awarded the contract contacted me and asked if I want to subcontract with him and handle this client.... I dont think he knew what he was getting into :). My contract with the company that lost the bid states "I am free to do other work ...not for the company". What are your thoughts on me doing the consulting work for this other firm that was awarded the bid..I will be working with the same contacts. Do I let the company that lost the bid know about it? I do have other clients for which I provide consulting work with this company. Want to be ethical but not stupid!

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5 Comments

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  1. Anonymous

    I would notify your current employer of your plan (do not ask permission).
    Simply put them on notice as a courtesy and remind them of the section of your agreement that allows for such work.

    You are well within your rights and are being transparent and ethical by providing your employer with notice.

    "In an effort to be transparent abd to honor my Agreement, I want to let you know that I have accepted some consulting working with axz company to support their work on the ABC contract they were awarded last month (or whenever).

    Please be assured that my goal is to support my work here at efg company and any consulting work will not interfere with that goal.

    Thank you."

  2. Anonymous

    This is perfect! I can always count on the group to provide the correct language. Thank you.

  3. Anonymous

    Some of this depends. Are you still employed by the original contractor? If you lost your job because they lost their contract, this might depend on how the labor laws work in your state. Some states have squashed non-compete agreements, because a company cannot deny you to be able to work, just because you have knowledge about a competing company. When it says "not for the company" which "company" did they/you mean? This is something that may need a legal opinion.

  4. Anonymous

    Yes still employed by original contractor... did not lose job. Working with other clients.

  5. Anonymous

    Thanks for the clarification. I'm not sure about the ethics, but if you let your employer know and they don't mind, why not?

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