A Bob Tale!

[donjuan75]

A year ago I decided to start out as a contractor. Eventually got a call from someone who found me on LinkedIn. This was a BobCo. with a significant presence in the UK and elsewhere. They had a situation where their client (BigPharma) wanted shot of a PM who couldn't project manage worth a damn. So, 12 month contract, pretty poor rate, but my first sealed gig. I was happy...until a week later when I got final call backs for 2 other gigs, but that's the way it goes.

Fast forward 1 year, contract up for renewal. Client specifically requests BobCo. to renew me. I had a good year, quickly became in demand by client for decent, high-vis projects. Next day BobCo. tells me they're not renewing me as they don't make enough profit on me. They make profit on their offshore guys, of course. I don't fit the profile. I suggest they tell the client this, which they fail to do. Client hits the roof, which leads to much hassle for senior people at both BobCo. and client.

Two weeks later BobCo. offers me a 12 month extension at current rate, which I decline, citing 10-12 reasons why, expecting this to start a negotiation. Silly me. BobCo. refuses any negotiation and we reach stalemate. Of course, I'd started looking for my next gig by then, knowing this won't end well.

So, I'm leaving this gig and looking for pastures new, and a rate more reflective of skills/experience etc. New PM is already on-shored and I'm managing his transition as we speak.

Some might say I'm stupid to decline a contract in this market, but I'm very stubborn. Client has now realised they will only get a certain type of PM for this rate, and I wholeheartedly disagree with the approach of using offshore guys just because they're cheap. If they're decent, no problem at all.

Here endeth the...probably quite dull story. Questions?

[TheFaQQer]

BobCo. tells me they're not renewing me as they don't make enough profit on me.
...
Two weeks later BobCo. offers me a 12 month extension at current rate, which I decline, citing 10-12 reasons why, expecting this to start a negotiation. Silly me. BobCo. refuses any negotiation and we reach stalemate.

They weren't making enough money on you, and told you that. You then expected them to increase your rate, which they refused to do. Are they on a fixed fee to the client? That would explain them not wanting to take any further cut to their margin.

The issue seems to be that the client doesn't want to pay a realistic rate. If they did, then they would have extended your contract because the margin would be there for the agency to take. I don't see it being significant who the agency are, to be honest - if there is no money in it for them, they aren't running a charity.

[Ketchup]

He who dares wins Rodney.

From your post, it appears you delivered on all your projects and were quite successful. You would have been extended if it wasn't for bob. In my experience, decent project managers are rare as rocking-horse tulip.

Those who can - do,
those who can't - manage,
Those who can't manage - project manage.

If you are one of the exceptions to that rule then turning down that extension was a great move (obviously I am unaware of your financial situation). I don't think the market is that bad, if you are good at what you do you will find work.

[eek]

Here endeth the...probably quite dull story. Questions?

Client hits very lucky and gets someone worth more than their paying.

Client then hits unlucky and gets exactly what they wish to pay for. Why is this news?

[TheFaQQer]

Client has now realised they will only get a certain type of PM for this rate

Well, you proved them wrong - they got you for that rate, so you managed to set their expectations that this is the going rate for someone with your skills in their sector and location.

If contractors keep going in low, then it can only hurt the rest of the industry - I used to get agents telling me "oh, the role pays £x" and when I'd tell them my rate, they would try to convince me to take a massive hit on the rate. It's when the market is swamped with people desperate that they cut to stupid levels that we all suffer.

[TheFaQQer]

You would have been extended if it wasn't for the client not wanting to pay a competitive rate

FTFY

[stek]

A Bob Tale!

24 month rule?


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[GB9]

The issue seems to be that the client doesn't want to pay a realistic rate.

If they wanted to pay a realistic rate there wouldn't be any point in getting a BobCo. Unfortunately expectation is that they get good at half-realistic rate. Eventually they find that is untrue.

More fun. Guess the client and supplier. I will start with Cognizant at AZ.

[CoolCat]

Cognizant at GSK Brentford?

Ive had similar and worse, bob co actively lobbies against you and puts changes in which mess the projects up. And so on.

Cognizant really are <mod snip>

[donjuan75]

?

Well, you proved them wrong - they got you for that rate, so you managed to set their expectations that this is the going rate for someone with your skills in their sector and location.

If contractors keep going in low, then it can only hurt the rest of the industry - I used to get agents telling me "oh, the role pays £x" and when I'd tell them my rate, they would try to convince me to take a massive hit on the rate. It's when the market is swamped with people desperate that they cut to stupid levels that we all suffer.

They got me for that rate for 1 year only. They trained me on their processes and then gave me a workload greater than all the other PMs. Then after a year, I decided it wasn't worth continuing at that rate. I don't think this is unusual. And their expectations are now up to date, surely, what with me leaving and transitioning to another new guy who will take 4 months to get up to speed.
First time contractors often take a low rate, as they don't always know the market very well at that point.