How to turn down a contract offer?

Question

I interviewed at a company for a contract-to-perm position and got the contract job. We've already had an initial project meeting and I've started work on the project for a couple of days, but they only sent me the paper contract to sign and return yesterday (which I have not done yet). This is a non-critical project as it is for their own company website. The problem is, now I have a much better offer from a company I like alot better, and is paying much more. With the proposed start date I would not be able to complete the contract project. I like the people there, and do not want to part on a bad note.

1) Is it inethical for me to turn down the contract now that work has already been started for two days, though the contract has not been signed?

2) How do I turn it down politely?

Answer 1

Just tell them you got a substantially better offer that's a good move for your career. Tell them you'd rather work for them, but they need to make an offer.Then let them decide whether or not to match it.