I want a better rate with contract renewal... but..?

**Ruprect** · 28 September 2008, 20:24

A few points.

1. £3-5 ph is a lot when talking about £18 ph. Not so much when you're talking about £70 ph. Everything is relative, so decide where on this scale you are as to how big a deal this really is.

2. Don't be scared of squeezing the agent - his "justification for increased responsibility etc" could be authentic, but there will always be wriggle room at his end too, but he will be loathe to give it. Remember that he will always prefer to have you in the role than not at all too.

3. The only real way to get the rate you want is to move contracts. Once there is a starting point with a client it is hard to make >10% jump in rate, whereas it can be easy to do this by moving (though market dictates whether or not there is anything to move to of course).

**Ruprect** · 28 September 2008, 20:26

Oh and also, don't hold it against the manager that he won't discuss the rate. Some will, some won't, its the way it is. the better you get to know him, the more you may be able to get him to provide you with leverage, but at the moment it sounds like you'll just end up p!ssing him off.

**BolshieBastard** · 28 September 2008, 20:45

One thing that strikes me about many 'new' contractors is that they think its somehow unjust that they are on a lower rate than others. Hello! We've all been there. Just because you've been somewhere for a year doesnt mean you're automatically entitled at renewal to be on the 'market rate.'

Rates change all the time and improved rates need to be earned one way or another. That means proving you have the skills, expertise and all round approach of more experienced contractors.

You may be able to negotiate an increase after 12 months but so too probably will the other contractors. So dont automatically assume you'll get rate parity.

**VectraMan** · 28 September 2008, 21:02

This really comes down to whether you need them more than they need you. If you're confident of getting a better rate elsewhere, then tell the agent you're not interested in renewing. That might make them realise you're serious and agree a better rate, or it might mean they place somebody else who's willing to work cheaper than you.

They're not under any obligation to give you a renewal, so to renegotiate always carries an element of risk.

**BrilloPad** · 29 September 2008, 07:39

Originally posted by Mart001 View Post

Hi need some advice on getting a new rate with the contract renewal,

I started this contract last year for a one year contract (my first stab at contracting) unfortunately in my desperation to get the contract I sold myself in under the going market rate (at the time I was between a rock and a hard shoulder) now the contract is being renewed next month I want the market rate of course and I'm in a good position to ask for it also other contractors are getting the market rate at which I’m currently being paid £3-5 ph below (a lot!). The problem is my manager is not allowed to discuss contractor’s rates he's saying this should be negotiated between the agencies and purchasing, which I think is bad he should be interested in what his contractors are being paid.

As the agency chased my requests (I don’t know what percentage their cut is) the client has come back with the following "the justification for a rate increase must detail additional responsibilities over and above those for which the candidate was originally hired"

There are few arguments I can put forward but nothing really substantial, but I thought since I’m starting a new contract this really should not apply, I thought it would be simple enough as
New contract, I put forward my bid for rate (going market rate) and then they try and see how close they can get.

Anybody have any thoughts

Thanks

Do you have any idea what sort of margin your fellow contractors' agencies are getting?

Some clients take an interest in margin - alot of IBs operate a fixed percentage for all agencies. But most do not.

Best way to negotiate is have another job. Or pretend to.

**Mart001** · 29 September 2008, 09:50

Thanks for your comments,

Yes the situation is an 18ph rate way below the market rate rate of 21-25, like i say i sold myself in short last year but no real complaints as I've had training on systems that will help getting further contracts and I've not had to pay.

I'll draft up some reasons (running with systems, intergrated part of team, taken on some other projects and the market rate) and put that forward, I am interviewing for contracts down the road for 23.50 ph so I'm in a good position to negotiate.

not even sure I'll stay just wanted your comments on the the client comming back with "the justification for a rate increase must detail additional responsibilities over and above those for which the candidate was originally hired" even though I'm starting a new contract.

**Mart001** · 29 September 2008, 09:56

Originally posted by BolshieBastard View Post

One thing that strikes me about many 'new' contractors is that they think its somehow unjust that they are on a lower rate than others. Hello! We've all been there. Just because you've been somewhere for a year doesnt mean you're automatically entitled at renewal to be on the 'market rate.'

Rates change all the time and improved rates need to be earned one way or another. That means proving you have the skills, expertise and all round approach of more experienced contractors.

You may be able to negotiate an increase after 12 months but so too probably will the other contractors. So dont automatically assume you'll get rate parity.

If they have experience then why should someone be on a lower rate just becuase their new to contacting?

sounds like your talking more about someone with little experience.

If a company wont pay the market rate then there will just be a high turnover, the market rate dictates what your worth at the time, yes sure your rate can go down but if its up why keep your mouth shut? keep in mind i'm below my rate while others around arent.

I want a better rate with contract renewal... but..?