rate increases

[ThomserveBAS]

I'm still a relative newbie to contracting but at the end of my 6 month contract, as part of the negotiations for an extension, I requested an increase (via the agency) which after a bit of bartering was agreed.

At the end of the second extension, I didn't request an increase (as I was fairly happy with the rate) but later found out that there had been a bit of underhand rate jiggery pokery (in a good way) going on and I'd been extended on a higher rate - clearly I've been under valuing the quality of the work I provide

[DirtyDog]

So when is it acceptable to ask for an increase for no real change in role?

Been with ClientCo for just over 2 years - probably looking at another renewal at the end of the month. Been on current rate for 18 months (big increase before that, but rate was previously properly tulip) - considering asking for a small (5%) increase. Agent is on 15% margin, so done OK out if it. But the new contractor that we just got in is direct, so I suspect costing less than me...

Get the agent to reduce their margin - that level, after that length of time warrants it.

Don't assume that the new contractor is cheaper than you - you may cost the client the same and they have a higher take-home than you because there's no agent in the middle

[SimonMac]

I'm still a relative newbie to contracting but at the end of my 6 month contract, as part of the negotiations for an extension, I requested an increase (via the agency) which after a bit of bartering was agreed.

At the end of the second extension, I didn't request an increase (as I was fairly happy with the rate) but later found out that there had been a bit of underhand rate jiggery pokery (in a good way) going on and I'd been extended on a higher rate - clearly I've been under valuing the quality of the work I provide

So the pimp worked out a raise for him and not you on the second renewal? I would be livid!

[lukemg]

I am probably more reasonable than most in this regard but all things being equal I pitch for a rise after 12 months and when a renewal is on the table.
If I want to stay it will be along the lines of, that's 12 months, can we discuss an increase in the rate ?I hope by this time I have some idea on how much the agent is creaming off, which tells me how hard to push. If they are on poor PSL, I know this will have to go through the client so act accordingly to avoid upsetting them too much i.e. only ask for 5%, which sounds like a fair COL increase.
If they are creaming 20%, I want 10%. I don't bother with justifying it, I just tell them I am looking to discuss and this is the level I am after.
I am used to all the fob offs that will come, being ignored, saying they have spoken to client when they haven't (I ask for it from their chunk in this case).
I DONT involve clientco if at all possible as it always comes out as grabbing.
I only play proper hardball if I am happy to leave, otherwise I will compromise on the rise but I DO want one, even a token amount or I am not happy (and dont fall for the 'we will see at next renewal' line, it is a fob-off)
So:
1 - tell agent as soon as he says renewal that you want to discuss a rise.
2 - DONT try to justify, especially if its after a reasonable time eg 12 months.
3 - Try not to annoy client/paint yourself into corner.
4 - It's business NOT personal.
Good luck...

[DirtyDog]

So the pimp worked out a raise for him and not you on the second renewal? I would be livid!

I read it as he got an increase without asking for one - kudos to the pimp.

[ThomserveBAS]

So the pimp worked out a raise for him and not you on the second renewal? I would be livid!

No - on the second renewal the rate the company contracted me on was higher than the rate I asked for on my last renewal (basically a forced rate rise) - only when it came to signing the renewal did I find out the rate as both agency and client had to reveal the rate (very odd circumstances but net result was a 5% increase in my day rate without asking, hence the

[ThomserveBAS]

I read it as he got an increase without asking for one - kudos to the pimp.

^ this

Although not sure on the kudos - this was basically client telling agent how much to pay contractor but all three parties knew the rate so no messing around.

Like I said, it was all very odd but whatever pays the bills.

[diesel]

Normally i do try and push a rate increase before the start of any contract, but agency offered me a rate when i started bit lower than requested before i signed (but still okay). Agent said it will be another week delay to go back and get rate reviewed, and suggested work now and request rate review when youre in. It was either lose a weeks income or work and ask for rate later.
I have been with this client for almost 5months. I feel my role is pushed more in the limelight on the project i have been asked to provide expertise to. No plans to leave yet, but i do have another client aksing to work full time but there work is not as exciting for me yet.
i will pull together some points and see what the agent thinks.

[northernladuk]

Normally i do try and push a rate increase before the start of any contract, but agency offered me a rate when i started bit lower than requested before i signed (but still okay). Agent said it will be another week delay to go back and get rate reviewed, and suggested work now and request rate review when youre in. It was either lose a weeks income or work and ask for rate later.
I have been with this client for almost 5months. I feel my role is pushed more in the limelight on the project i have been asked to provide expertise to. No plans to leave yet, but i do have another client aksing to work full time but there work is not as exciting for me yet.
i will pull together some points and see what the agent thinks.

Asked to provide or contracted to provide?

[Ticktock]

Agent said it will be another week delay to go back and get rate reviewed, and suggested work now and request rate review when youre in. It was either lose a weeks income or work and ask for rate later.

Yes, I was naive enough to follow this advice too, although it was on another point, not the rate. What it basically meant was either that the agent couldn't be bothered to speak to the client, or didn't want to rock the boat with the client. They just wanted a signed contract and to get you in the door.
Of course, once you're in, trying to renegotiate the terms of your signed contract is pretty much a no-no unless the role is changing (when you may want a new contract anyway), or you are looking to extend the contract.