I used to contract that way. When ever they needed a mod to a program I'd price it up and they'd write me a purchase order. I used to have a whole bunch of POs on the go at the same time. Different departments would write me POs. Sometimes they'd just send me a PO and one line saying what they wanted done. These ranged from £300 to £5000. I could do the work on site or back at my office. I could get my employees to do the work.
You'd think I'd have been immune from IR35 but when it came out the client panicked and tried to get everyone on an IR35 contract.