Extension and rate negotiation

[mea]

Have been approached by the client for another 3 months extension to work on a strong business based project.

Now have been in the current role for 3months, so this is my first extension.

I want to know is it a liberty to go for negotiation on your first extension. reason iam thinking of this is because , i have been given 2 projects to work on 50-50, intially it was just one. Luckily for me both are very strong projects in the business.

So what do you think should I go for rate negotiation/ not.

[Alf W]

Rate increase based on what?

Work significantly different - go for it.
Market rates moved significantly - go for it.
You just want a bit more - don't bother.

I used to be on the other side of the fence employing contractors and there's nothing more irritating than one who just wants more each time for no reason.

[chicane]

I used to be on the other side of the fence employing contractors and there's nothing more irritating than one who just wants more each time for no reason.

Of course it's irritating when somebody working for you asks for more money, because it's less money in your pocket at the end of the day.

But if, at the higher rate, the contractor still represents good value to you and there are no other immediately available alternatives, why exactly would you demand a justification from the contractor? It's like demanding to know why Sainsbury's have put up the price of a frozen lasagne by 10p - frankly it's none of your business.

[mea]

Well,

rate increase because, initially came on the job working on a single project.

Now have been asked to go on 2 projects even though it says 50-50, one always ends up taking on sort of 70-70 workload.

[VectraMan]

I'm trying to do it after 12 months. I can't help feeling that after only 3 months is a little bit of a cheek, unless both sides had agreed you were working for less than you're worth as an informal trial.

I like the frozen lasagne argument; maybe I'll use that.

[malvolio]

I stick to my manager's answer to this one: you get more money if you have added value to the work you are doing. I already pay you to do the best job you can, so why should I pay you any more, especially at the first extension?

Demonstrate you are doing something over and above the job on the contract, or that the job itself has changed to something more 'difficult' and then you can ask for a rise. Otherwise, you're just an irritation and I might consider that at your next extension point...

Get it? That's how your client will look at it.

[rootsnall]

Each situation is different but if you are happy enough where you are, the rate isn't too bad and you quite fancy settling in for a long stay then I'd just renew and keep your head down. If there are negatives and you are not bothered about staying then ask for more money and try it on.

[chicane]

I stick to my manager's answer to this one: you get more money if you have added value to the work you are doing. I already pay you to do the best job you can, so why should I pay you any more, especially at the first extension?

Demonstrate you are doing something over and above the job on the contract, or that the job itself has changed to something more 'difficult' and then you can ask for a rise. Otherwise, you're just an irritation and I might consider that at your next extension point...

Get it? That's how your client will look at it.

What you're saying here is that you should be prepared to walk away if your client doesn't respond favourably to your request for more money - which is fine.

However, there's nothing inherently wrong (as you appear to imply) with asking for more money upon renewal. Any client of sound business mind would shut away any emotional factors (eg irritation) and focus on whether the new rate would still represent a good deal for them in comparison to the alternatives available and the hassle endured in moving to those alternatives. If the deal remains good for both contractor and client, there are no good reasons not to continue working together.

[VectraMan]

However, there's nothing inherently wrong (as you appear to imply) with asking for more money upon renewal. Any client of sound business mind would shut away any emotional factors (eg irritation) and focus on whether the new rate would still represent a good deal for them in comparison to the alternatives available and the hassle endured in moving to those alternatives. If the deal remains good for both contractor and client, there are no good reasons not to continue working together.

I agree. Malvolio's position seems to be almost akin to the approach taken with a permie, i.e. it's assumed a continuation is the norm. For the likes of us both sides should treat each contract as seperate. So you complete 6 months for a fee that both sides are happy with, but that doesn't imply any obligation to carry on from either side. If both sides want another 6 months, then that's a new contract and both sides have to agree a price. If anything the contractor is now worth more because of the specific knowledge and experience that they have of the client's systems.

[rootsnall]

Any client of sound business mind would shut away any emotional factors (eg irritation).

Would they be the sound business minds who let us get away with messing about on here all day !

The emotional factors do come into it in the real world and it is an irritant that most managers could do without so it shouldn't be done lightly if you are in a half decent contract. It is always on a case by case basis.