How to effectively negotiate day rate uplift for Offshore work? How to effectively negotiate day rate uplift for Offshore work?
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  1. #1

    Nervous Newbie

    cabletvguy2 doesn't make much sense


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    Default How to effectively negotiate day rate uplift for Offshore work?

    Hi Guys, i'm looking for some advise negotiating a date rate uplift for working offshore.

    This is my first contract so be kind. I'm invoicing monthly through my Ltd. The clients office is commutable daily and hence why I keep accepting the 6 month contract renewals on face value. Currently on month 30.

    As a Systems Specialist I've been involved from the start designing the system during the bid stage right through to currently commissioning the system on the platform overseas.

    My contract define a 'normal' working week as 40hrs over 5 days at £35/hr. I managed to agree the following uplift for trips overseas for commissioning activities.

    • Travel day - 8hrs
    • Yard day - 11.5hrs
    • Days off - 0hrs
    • T&S expenses to the client, economy flights only :-(


    The client has just offered me another 6 month contract renewal and expects me to attend the gas platform in the Eastern Med accompanied by some permanent engineers. I have offshore experience and have worked on some platforms in the North Sea, but never as a contractor.

    How do I negotiate a better day rate while working offshore? My reasoning for increased day rate as follows:

    • Current indemnity policy would be invalid
    • Currently life insurance policy would be invalid
    • Political unrest
    • Past the 24 month rule
    • Desire to pursue different contracts closer to home.
    • Long hours and probably 14 days straight.


    Any advise would be appreciated.

  2. #2

    Godlike

    Zigenare is a fount of knowledge

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    Your extension should be treated as a new contract, under the different terms that you will negotiate due to the change in your responsibilities and increased risk.

    Failing that, considering that you mention working nearer home you could say "thanks, it's been great working with you and the team and I hope that some time in the future there will be other opportunities." and walk.

    Reading between the lines it sounds that you're pretty much key to the project, in which case, name your price. Btw, economy isn't an issue for short flights but anything over 3 hours duration I'd request something better.

    You're a consultant, you should be treated as such.

    Good luck!

    The above advice is free, however if you require further consultation then please make an appointment with my secretary.
    Old Greg - In search of acceptance since Mar 2007. Hoping each leap will be his last.

  3. #3

    Contractor Among Contractors

    b0redom has more data than eek

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    As the other guy said, just spell it out. It doesn't seem unreasonable given that you're contract has materially changed (seemingly a lot).
    And the lord said unto John; "come forth and receive eternal life." But John came fifth and won a toaster.

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