Contracting Rate Advice

**rjoe** · 4 June 2017, 19:10

How much do you think is a fair price for your time?

**jmo21** · 4 June 2017, 19:55

Originally posted by rjoe View Post

How much do you think is a fair price for your time?

Classic CUK!

**fatJock** · 4 June 2017, 20:30

If this is your business model i.e. providing similar services for multiple companies im not convinced that daily rate is the way to go. Personally I'd have thought that an annual retainer (paid in monthly instalments) is best.

Less issues with IR35 and creates a model that you can extend to other customers?

**uk contractor** · 4 June 2017, 21:12

Originally posted by sandybeach View Post

I am looking for a bit of advice i have been doing some work for a client (web design, IT consultancy, Laptop/Desktop purchase and setup, software advice and installation and some general IT support).

It has been ad-hoc work around my current day job, paid at the moment, its likely togo into a full time job in a few months time, basically i would be the sole IT person covering all IT aspects, so if there is something i can not do such as graphical design i would outsource it, the client would pay for the costs rather than me, this would be for him, some of the day to day activities would include:

- Day to Day IT Support (2nd/3rd)
- Purchasing (Software/Hardware)
- Website Development and Maintenance
- Maintaining mail servers and web based applications (which i have selected and installed)
- Run and maintain file server
- Out of hours support (most likely will be some anti-social work as the businesses run 24/7)
- Working from home and travelling to south London, Cornwall and across the UK at times, i will based in London from home.

The two companies are fairly small-medium size, the office staff is about 10 - 20 people per company with another 20 - 30 staff out in the field.

Were in a stage of negotiation about my duties but when it comes down to day rate, that is what i am not certain about, i dont want to under-price myself and i dont want to come across as a rip off merchant.

Can someone advise about day rates please, what would you charge for the above role if someone came to you wanting to do this ?

Thanks for your time.

Apart from the Cornwall aspect the rest of it right now is not worth much at all rates are very low for support work you would be looking for £150-175 a day or £15-20 per hour + expenses. If they put the role on jobserve it would go way lower than those rates as well (supply & demand!). When these roles had less applicants you could double those rates but now the market is swamped with on the bench applicants so rates have tumbled to the bottom. Many support roles now pay around £10-15 PH or £80-90 per day which is about as low as they can go!!

Can the remote sites not be supported via remote control software instead would save a lot of hassle unless you have to physically be in front of the hardware?

**MrMarkyMark** · 5 June 2017, 07:54

Originally posted by uk contractor View Post

Apart from the Cornwall aspect the rest of it right now is not worth much at all rates are very low for support work you would be looking for £150-175 a day or £15-20 per hour + expenses. If they put the role on jobserve it would go way lower than those rates as well (supply & demand!). When these roles had less applicants you could double those rates but now the market is swamped with on the bench applicants so rates have tumbled to the bottom. Many support roles now pay around £10-15 PH or £80-90 per day which is about as low as they can go!!

Can the remote sites not be supported via remote control software instead would save a lot of hassle unless you have to physically be in front of the hardware?

He says he will be largely based at home.

General Help desk hourly rates are not really that applicable to this.
He should be going for a yearly Managed Service Contract.

**sandybeach** · 5 June 2017, 16:19

Yes its not a standard support contract thats whats different, i will be doing the support, but basically setting up all the IT software/hardware, making recommendations and implementing them etc

With regards to remote control a good deal of this will be web based, i have one server which will be hosting some of it on, other bits on rented VPS servers. So most will be offsite support, but when i would be onsite all expenses for travel, accommodation (hotel etc) would be paid for ontop of the agreed rate.

They could put the role on jobserve but i think that would only happen if i turned them down.

I think your right that a yearly Managed Service Contract would be the right way to go.

I know that any contract should detail what i supply, SLA's and and standard working hours then additional rates for out of hours cover / calls which i know will happen from time to time.

With regards to getting a fair price for me and for the client so its the right balance are there any sources you guys recommend i could look at to get an idea of what price to charge, i know i can simply email various sourcing suppliers and see what they would charge for this but i want to cover my bases before i commit as i dont want to agree a price and then say a few months later i want X more?

Thanks

**MrMarkyMark** · 5 June 2017, 16:45

Originally posted by sandybeach View Post

Yes its not a standard support contract thats whats different, i will be doing the support, but basically setting up all the IT software/hardware, making recommendations and implementing them etc

With regards to remote control a good deal of this will be web based, i have one server which will be hosting some of it on, other bits on rented VPS servers. So most will be offsite support, but when i would be onsite all expenses for travel, accommodation (hotel etc) would be paid for ontop of the agreed rate.

They could put the role on jobserve but i think that would only happen if i turned them down.

I think your right that a yearly Managed Service Contract would be the right way to go.

I know that any contract should detail what i supply, SLA's and and standard working hours then additional rates for out of hours cover / calls which i know will happen from time to time.

With regards to getting a fair price for me and for the client so its the right balance are there any sources you guys recommend i could look at to get an idea of what price to charge, i know i can simply email various sourcing suppliers and see what they would charge for this but i want to cover my bases before i commit as i dont want to agree a price and then say a few months later i want X more?

Thanks

Without knowing more and I don't either you should do this ASAP.

You aren't going to be offshoring like some competitors, so you need to take that into consideration.
If you are hosting servers you need to charge them for that too.

Remember you are charging for a bespoke knowledge based type of service, not some BOS hourly rate, or some shoddy offshore managed arrangement.
Charge accordingly.

**quackhandle** · 6 June 2017, 07:04

Originally posted by sandybeach View Post

I am looking for a bit of advice i have been doing some work for a client (web design, IT consultancy, Laptop/Desktop purchase and setup, software advice and installation and some general IT support).

It has been ad-hoc work around my current day job, paid at the moment, its likely togo into a full time job in a few months time, basically i would be the sole IT person covering all IT aspects, so if there is something i can not do such as graphical design i would outsource it, the client would pay for the costs rather than me, this would be for him, some of the day to day activities would include:

- Day to Day IT Support (2nd/3rd)
- Purchasing (Software/Hardware)
- Website Development and Maintenance
- Maintaining mail servers and web based applications (which i have selected and installed)
- Run and maintain file server
- Out of hours support (most likely will be some anti-social work as the businesses run 24/7)
- Working from home and travelling to south London, Cornwall and across the UK at times, i will based in London from home.

The two companies are fairly small-medium size, the office staff is about 10 - 20 people per company with another 20 - 30 staff out in the field.

Were in a stage of negotiation about my duties but when it comes down to day rate, that is what i am not certain about, i dont want to under-price myself and i dont want to come across as a rip off merchant.

Can someone advise about day rates please, what would you charge for the above role if someone came to you wanting to do this ?

Thanks for your time.

I would make sure you are properly compensated for this one, as you do get the odd client taking the pi$$ wanting you at their beck and call all the time, but not wanting to pay for it.

qh

**grabri** · 6 June 2017, 07:19

Originally posted by quackhandle View Post

I would make sure you are properly compensated for this one, as you do get the odd client taking the pi$$ wanting you at their beck and call all the time, but not wanting to pay for it.

qh

Yes. Suggest a separate out-of-hour rate per hour, with minimum one hour per call.

Contracting Rate Advice