What % Increase Is Typical on Contract Extension?

[astro]

Hi guys, as a relative newby to contracting, I've now completed a 2 month contract at a company and they are looking to extend for another 6 months. I would like to approach the agent for a rate increase, but was wondering what % increase would be expected/typical now that they have proven I can do the job?

...and how should I word it? Pitch it higher than I want and expect that the agent will pitch lower (thereby getting my target rate)...or just say " I want xxx per hour on contract renewal, now that they know I can do the job."

[ratewhore]

Whatever you can negotiate with the agency.

Remember, your negotiation is with the agent, not with the client. Having said that, unless your 2 month contract was pitched lower to win the gig then personally I wouldn't try to get a rate rise until the next 6 months is up. Then you can show percieved added value due to project knowledge etc...

[ChimpMaster]

Yes and it also depends on how happy you are with the current rate you are being paid. As a newcomer to contracting I wouldn't hark on about a rate rise after just 2 months.

For example, it would be better to wait 6 months or even a year if you are on a long termer. Last year I was happy with my rate and so only asked for an inflation linked rise then. This year I may not even ask for a rise, I am just happy to be in contract when there is very little other work around for me!

Largely, it's specific to your circumstances.

[DimPrawn]

What % Increase Is Typical on Contract Extension?

I would say either 0 or -100 these days.

HTH

[Mordac]

Anything under 12 months, I'd say 0%. If the rate wasn't enough you shouldn't have taken the contract. If your role changes (you're doing far more) then you ought to be able to negotiate, but do it on the basis of the change in role, not just because you want a bit more money. That makes you look like a money grabbing amateur.

[Swamp Thing]

I achieved 25% increase after 6 months in my last contract. Thought that was reasonable...

[Spacecadet]

If there is a risk to the agency that they might loose out if you don't renew... eg the agency was not the clients prefered agency then an extension means easy repeat business for them which they might not otherwise get. So an increase in your rate might just eat into their cut. Obviously though they'll try and pass that loss onto the client by charging more so the screws need to be applied from both ends

If you get on well with the client, advise them that you are keen for an extension but it depends on how negotiations go with the agency. Don't forget that most agency contracts will expressly forbid you talking about your rate with the client (and no doubt there is a similar clause in their contract)

As mentioned already, look for anything in your work load which is different from the original job spec. After 6 months you should have worked your charm on the company and a few more opportunities should have presented themselves.

Personally, in my current contract, I've been taken on for data warehouse building and data migration. However, reporting requirements are slowly creaping in as in house staff are either too busy are not up to the task. Once the original work is finished (which is scheduled for contract end) I'll be in a position to push for an extension (with raise) to build their reporting suite. If i'm stupid i'll sort out all their reporting requirements at the same time as building the DW and end up missing out on several extra billable months or on a potential rate raise.

[rootsnall]

As mentioned by Spacecadet I think you need a quiet word with the client to suss out what margin the agent is on and if there is possible extra money from the client available. I have found rate rises are always a struggle without playing hardball and after only 2 months that might be difficult but you won't get anything if you don't ask.

[lukemg]

I think it is too soon unless the following apply:
1. You know for certain agency is skimming a big percentage >25% off the top.
2. You are prepared to leave/hate the boss/have another job. In which case you ask for rise and walk if they say no. Did this on one contract after 6 months, boss didn't like contractors (you earn more than me), place was dull. Put in for a rise with agent, boss came over to me
Boss - 'sorry, no more budget available'
Me - I can understand that, fair enough.
Me to agency 30secs later - 'no rise, I walk, that's it'
Boss to me passing my desk seething - 'OK YOU'VE GOT YOUR RISE'
Me - 'much appreciated'
Point is, I was prepared to walk so didn't care, if that isn't the case I would take it (mention to the agent you will be expecting a rise at next renewal if one turns up)

[bunting]

I need to resurrect this discussion.

I am at a client that wants me to come back in Jan after I have had 6 weeks out (they have 51 week rule). I want to increase my rate, although I'm fairly happy with what I've been getting, I know I'm worth more and some Contractors are on much more than me.
I've been with the same client since Jan this year, have particular product knowledge and even have a project that I can pick up when I come back. Also I have added quals (which I paid for) they requested over this year.
Sooo, since comparable Contractors are on between 10% - 50% more, am I reasonable to ask for 25%?? This year I've extended each time (3) without asking for a rate rise.