Is contract renewal rate increase negotiation always with the agency not the client?

[gables]

In general at renewal time you're less likely these days of getting a rate increase (although will depend a bit on supply\demand for your skill) when staying in the role\doing the same thing, I suppose why would a client pay more just because it's a renewal.

At initial rate negotiation I tend to go in a bit above what I'd like (depends on various factors), if it sticks then great :-) if they come back lower at what I'd like then I'll accept - they're happy having knocked off a bit.

[LondonManc]

Thanks for all the replies.

I'm speaking to other agencies about new contracts now, my plan is in the next couple of weeks to discuss the situation with the client first, but do the final numbers negotiation through the agency. As people have said, a large % increase may be unlikely, but I have nothing to lose as I'm willing to leave.

More generally when negotiating either for a new contract or renewal, is it expected to ask for the rate you actually want and expect to get? Or a rate above what you expect realistically to get and you expect to be negotiated down to what you actually expect? I.e. will clients/agencies always try and lower the first rate you give or will they accept it if they think it's reasonable?

Re: my specific client/agency, I know that the client knows the rates their contractors get from their agencies, so I think it's unlikely the agency is getting an unusually big margin, but who knows. I think the client is just cheap when it comes to new devs.

In general, you've got to be prepared to walk away from a contract if need be to force your hand. If you already have a good relationship with the client, then you can say that the agency are messing you around and have a quiet, confidential chat with the hiring manager. As I said before, if you think you're being shafted and the hiring manager agrees, they can often help you to shaft the agent, who are as popular with the client as they are with the contractor much of the time!

[Hobosapien]

Is the other contractor 'on significantly higher rate' doing similar role and via same agency as yourself?

If yes to either then there may be scope for playing the game with the agency of getting a rate increase by 'accidentally' finding out what other contractor(s) are getting and insisting it is addresses at renewal, but need to play it carefully and be prepared to walk or put up with what you can get.

I've never instigated rate talk with client but sometimes they start the conversation and have found out what they have been paying agent and managed to get a rate increase at renewal accordingly. Depends how good your relationship is with permies at client that handle this aspect of the contract. Some will be open to casual chats if on suitably friendly terms. You can drop hints you may have to move on due to costs if working away from home or seen other better offers in locality if based near home.

Also bear in mind that if there are other more expensive contractors on the same or similar projects at client they may be the first to be 'let go' when the client starts pulling back on needing so much contractor resource. Handy if the state of the market looks bleak so can ride out the contract on a lower rate (though try to close the gap if possible so not too low) while others are canned. I've done this a few times by not being 'greedy'. When working out bench time on no rate vs in contract on lower rate you may come out on top if there isn't plenty of work around to easily walk into.

[Old Greg]

You'll never get 50% increase, you need to move

This. Time to go.