Contract work will generally have a higher pay, due to you being a contractor. Once you work is almost done, you need to start looking for another job. Some people like this, as they can work a lot during the year then take a few months off. Some people don't like it, as every few months you need to sell yourself to a new company.

I haven't worked a contract job, but I've had a lot of offers. They pay looks great, but I like having a stable job where I don't need to relearn a new system/corporate structure every few months.