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HELP! Extension Day Rate Negotiation!

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    HELP! Extension Day Rate Negotiation!

    Hi all,

    I've been in my current public sector contract role (inside IR35) since October 2020, this was due to end in March 2021 but I've already been told they would like to extend until the end of November. My question is whether to negotiate a higher day rate?

    It's been made clear that my responsibilities will be growing over the next coming months and therefore feel it's fair that my remuneration is amended to reflect this... However I am also extremely grateful to even have a contract at the minute, let alone be offered an extension, given all that's happening in the job market right now (I myself spent 6 months on the bench last year).

    Should I count my blessings and accept the extension at my current rate or ask for an increase?

    FYI I am currently on £325 and would be asking to go up to £375 pd.

    Cheers!

    #2
    Ignore what's coming, the question in the client's mind will be "Has this guy added value to the job we're already paying him to do to the best of his abilities?". If you have then you have a case or renewal at extension, either from your client or, possibly more doable, from the agency margin. but don't expect lots. £50 a day is 15% increase...

    However if the client is genuinely giving you new responsibilities - presumably outside your existing contract - then you need a new schedule for the contract and that is the point at which you talk money. If they don't want to do that then there went your IR35 defence if you have one and your leverage for a rate rise.

    You don't get paid more for being there, you have to have exceeded your target. And always remember - if you can't afford to walk, don't bugger up what you've got.
    Last edited by malvolio; 16 January 2021, 16:04.
    Blog? What blog...?

    Comment


      #3
      Originally posted by malvolio View Post
      Ignore what's coming, the question in the client's mind will be "Has this guy added value to the job we're already paying him to do to the best of his abilities?". If you have then you have a case or renewal at extension, either from your client or, possibly more doable, from the agency margin. but don't expect lots. £50 a day is 15% increase...

      However if the client is genuinely giving you new responsibilities - presumably outside your existing contract - then you need a new schedule for the contract and that is the point at which you talk money. If they don't want to do that then there went your IR35 defence if you have one and your leverage for a rate rise.

      You don't get paid more for being there, you have to have exceeded your target. And always remember - if you can't afford to walk, don't bugger up what you've got.
      I've been in my current public sector contract role (inside IR35) since October 2020


      He's inside already so why would he need any 'defence'?
      Clarity is everything

      Comment


        #4
        Do you have a clear view of how your role will change and what you will be taking on? This is what I'd use to negotiate a higher rate. If it's just speculation, them saying it as they think it'll keep you interested for instance, then they may be a bit willy about their plans.

        As with all negotiations, be prepared for a flat out no or a counter offer. Don't start with "I want an extra £50 or I leave" as there's a good chance they'll let you leave.

        More like, "you're going to ask me to to x, y, z in addition to what I've done over the past few months and, assuming the extension is being offered because you're happy with my work, I'd like a rate increase of £50"

        Comment


          #5
          Originally posted by Analyst91 View Post
          Hi all,

          I've been in my current public sector contract role (inside IR35) since October 2020, this was due to end in March 2021 but I've already been told they would like to extend until the end of November. My question is whether to negotiate a higher day rate?

          It's been made clear that my responsibilities will be growing over the next coming months and therefore feel it's fair that my remuneration is amended to reflect this... However I am also extremely grateful to even have a contract at the minute, let alone be offered an extension, given all that's happening in the job market right now (I myself spent 6 months on the bench last year).

          Should I count my blessings and accept the extension at my current rate or ask for an increase?

          FYI I am currently on £325 and would be asking to go up to £375 pd.

          Cheers!
          See if you can get them to agree £300. This should give you more job security and you won't have to worry so much about renewal next time.

          Comment


            #6
            Originally posted by SteelyDan View Post
            I've been in my current public sector contract role (inside IR35) since October 2020


            He's inside already so why would he need any 'defence'?
            Because other people in a similar position may read it who may believe they are outside IR35. Hence the qualification on my post.

            Happy now?
            Blog? What blog...?

            Comment


              #7
              Originally posted by Analyst91 View Post
              Hi all,

              I've been in my current public sector contract role (inside IR35) since October 2020, this was due to end in March 2021 but I've already been told they would like to extend until the end of November. My question is whether to negotiate a higher day rate?

              It's been made clear that my responsibilities will be growing over the next coming months and therefore feel it's fair that my remuneration is amended to reflect this... However I am also extremely grateful to even have a contract at the minute, let alone be offered an extension, given all that's happening in the job market right now (I myself spent 6 months on the bench last year).

              Should I count my blessings and accept the extension at my current rate or ask for an increase?

              FYI I am currently on £325 and would be asking to go up to £375 pd.

              Cheers!
              ask your agent. thats why he / she is paid.

              Comment


                #8
                You need to know if your agent is on a fixed percentage comission. If they are then not a chance. It's always good to ask them this right off the bat when you are being put forward. Agents, for all their faults, have been pretty open when I've asked them. I do get them to confirm in an email as well. It's one thing lying on the phone, it's another writing it down. I don't think, on the whole, they are that stupid.

                The more experienced and confident you are with them the straighter they'll play it. If you go in as a wet behind the ears noob they'll try pull your pants down. By asking questions like this they know you've got some clue how it all works.

                Try asking the agent how their comission works, fixed price or variable, get that in writing to be sure and then there is basis for your rate increase. As I say, if it's fixed then they can't flex.

                The increase from 325 to 375 is what? 15%? The increase will come from the agents comission so I don't think there is a hope in hell for that much. They still want a chunk left so they'd have to be on 30+% to even consider that. I think you are way off looking at a 50 quid a day increase on 325 personally. Tenner, tops twenty maybe. The numbers you are quoting would only work if you were completely changing role.

                The other thing to consider is why would an agent give up money for you? Agents do this for a job so are hard nuts. If they had a pound for every limp wristed attempt by contractors to up their rate they'd be loaded. The only way you'll get it is if the agent thinks they are gonna lose more i.e. you are ready walk. More responsibilities at the client is somethign they won't give a stuff about. Challenge their ability to make money and they might sit up and listen, other wise you are on a wish and a prayer.

                Id' be surprised if agents dealing with Public Sector frameworks aren't on fixed percentages but I'd be happily corrected on that one.

                Also remember, if they quickly fold without putting much of a fight up then you know they've been pulling your pants down all this time. Their commission could be eye watering.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by Analyst91 View Post
                  However I am also extremely grateful to even have a contract at the minute, let alone be offered an extension, given all that's happening in the job market right now
                  I think you answered your question right here to be honest. I have been through plenty salary and rate negotiations and for me it boils down to - are you ACTUALLY willing to walk away from this. Like be honest with yourself - can you find something better (or at least you are 100% intent on trying to do so). If you are not - then you will not be able to convince anyone otherwise.

                  Nobody is going to give you more money just because you ask. You have to convince them that there is an 'or else' implied - i.e. you will walk. Which boils down to - how much does the client care about losing you as a contractor - can they easily replace you? Which in itself is a question which can be quite complicated because maybe they can't replace you because you have a unique set or skills or have a good knowledge about the project you are working on or maybe... just maybe you are the only mug who accepted such a low rate to begin with.

                  Comment


                    #10
                    Originally posted by AnthonyQuinn View Post
                    ask your agent. thats why he / she is paid.
                    Hahaha.
                    That’s not meant to be a serious suggestion is it? No trolling in the professional forums...
                    See You Next Tuesday

                    Comment

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