Contract Renewal - what to do?
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    Default Contract Renewal - what to do?

    I'm new to contracting and just coming up to the last month of my current contract. Just got emailed by the line manager confirming that my contract will be renewed for another 6 months.

    I wish to stay on but want to negotiate for a higher rate, what's the usual response?

    Do I reply to the email and say thanks and wait for the new contract from the agent to discuss the new rate with my agent?

    Any advice please

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    Quote Originally Posted by JimC View Post
    I'm new to contracting and just coming up to the last month of my current contract. Just got emailed by the line manager confirming that my contract will be renewed for another 6 months.

    I wish to stay on but want to negotiate for a higher rate, what's the usual response?

    Do I reply to the email and say thanks and wait for the new contract from the agent to discuss the new rate with my agent?

    Any advice please
    Why do you want a higher rate? you're unlikely to get one just because you feel like one.

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    Quote Originally Posted by FrontEnder View Post
    Why do you want a higher rate? you're unlikely to get one just because you feel like one.
    Because i feel like i took a lower rate initially as I was new and found out the day rate the client was paying for me so the agent are taking a big margin.

    So i'm wanting to negotiate a rate with the agent.

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    You aren't adding any extra value from when you started so why do you expect more?

    The only place you can get more money from is reducing the commission the agency is taking. If they are on a fixed margin you are dead in the water. If you are new it's highly likely they are charging you newbie tax so might be able to reduce his margin a few 10's of pounds in your favour.

    Thing you have to remember is agents do this day in day out. You could politely ask and anyone with a hole in their bum will refuse. You have to stick it to them and convince the agent it's in his best interests to pay. Telling them you want xx or you are going back to market is the best way but you've got to sound convincing. If he sniffs you don't mean it you are on a hiding to nowhere.
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    Quote Originally Posted by northernladuk View Post
    You aren't adding any extra value from when you started so why do you expect more?

    The only place you can get more money from is reducing the commission the agency is taking. If they are on a fixed margin you are dead in the water. If you are new it's highly likely they are charging you newbie tax so might be able to reduce his margin a few 10's of pounds in your favour.

    Thing you have to remember is agents do this day in day out. You could politely ask and anyone with a hole in their bum will refuse. You have to stick it to them and convince the agent it's in his best interests to pay. Telling them you want xx or you are going back to market is the best way but you've got to sound convincing. If he sniffs you don't mean it you are on a hiding to nowhere.
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    Quote Originally Posted by JimC View Post
    I'm new to contracting and just coming up to the last month of my current contract. Just got emailed by the line manager confirming that my contract will be renewed for another 6 months.

    I wish to stay on but want to negotiate for a higher rate, what's the usual response?

    Do I reply to the email and say thanks and wait for the new contract from the agent to discuss the new rate with my agent?

    Any advice please
    Don't look a gift horse in the mouth, be glad you've been renewed, not many get that these days. If you get all sniffy over rate they could easily bin you.

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    Consider the following points if you're looking to get a rate increase:

    1. Does the client desperately need you to stay? If so, then you might be able to negotiate a rise. If not, then be prepared to leave.
    2. Are you able to get another contract easily enough? If yes, then start looking now. You can then say you have another contract lined up at a higher rate - and use that as leverage. Again, be prepared to walk if your request for a rise is turned down.
    3. Are you on a lower-than-average rate already? In this situation you might have a case for getting a rise but consider why the client hired you in the first place: perhaps it was because you were cheap, or perhaps it is because the agent pushed your CV because they are making most profit from you.

    I have fallen into category 1 in the past and this has resulted in positive negotiations for me. But that's because I'm working on dead tech that no one else touches.

    The point is that you need a reason for the agent or client to give you a rise. You don't ask, you don't get; so in my book, if you're already feeling undervalued and you can justify this, then ask now, else you will feel trapped for the next 6 months.

    And next time when you get a new contract, negotiate hard from the start so that you begin with a rate you're happy with.

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    When I was a permie, we gave a rise to contractors in 2 situations:

    1. When we hired them on a lower rate and agreed to revise once we say how they got on (they had relatively little experience).
    2. They had an offer for x amount and we agreed to match if they renewed.

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    Quote Originally Posted by northernladuk View Post
    The only place you can get more money from is reducing the commission the agency is taking.
    Apart from the client paying more, of course.
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    Quote Originally Posted by TheFaQQer View Post
    Apart from the client paying more, of course.
    Indeed but chances of that for most, let alone a new contractor are?
    Last edited by northernladuk; 6th September 2017 at 16:48.
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