Rate change between applying for the job and getting the contract?

[kali89]

Hey all,

I'm not even a first-timer contractor (yet) and have found myself in a bit of a pickle. I applied for a role and got put forward at £575/day (the agent heavily suggested I go in at £550/day but I said that I wasn't that fussed if I didn't get the role and I wanted to go at £575 and if it ruled me out then so be it). A week or so later and I've been given an offer.

However, I've been told that the budget for the project has been changed and that they're only able to offer me £550/day. I'm currently working full-time and have a few other irons in the fire so it's not really a case of needing the contract, though I was interested in the role/location.

I think what I'm asking is, how much do you think I can trust the agency that the budget has changed? It seems suspicious to me and I'm wary of being fleeced. What do you think the chances are, that if I say I'll accept £575 or walk away, that they'll come back and offer me the £575. Additionally, is there anything I can do to find this out?

Finally, I'm being told that the contract (originally a 6 month contract) is actually only a 5 month contract because I've got a month's notice period to work so the 6 months will start when they make the offer and I'll only get as long as I'm actually there. But that the contract they give me will be shorter because of the Government's tax year. So they'll give me a contract until the end of the Government's tax year, and then a renewal to take the contract up to 6 months from offer date. And then there's lots of chat about how "it's almost certain to be extended afterwards" e.t.c.

Does that last paragraph all sound reasonable/normal? It's all new to me and sounds pretty dodgy but I'm aware I'm approaching this from a point of very little knowledge.

Thanks!

[northernladuk]

You've already said you are not fussed if you don't get the role so stick 575 in and tell him to take it or leave it. You've done it once so just do it again surely?

Last paragraph sounds a bit convoluted. Assume the gig lasts as long as the notice period and take it from there. Do NOT expect it to be extended else in many cases you'll be disappointed.

And good luck with clients waiting a month for you. Many gigs will mysteriously disappear in that period and there is nothing you can do about it, contract signed or not.

[SeekingIT]

Good Man!!!

Hey all,

I'm not even a first-timer contractor (yet) and have found myself in a bit of a pickle. I applied for a role and got put forward at £575/day (the agent heavily suggested I go in at £550/day but I said that I wasn't that fussed if I didn't get the role and I wanted to go at £575 and if it ruled me out then so be it). A week or so later and I've been given an offer.

However, I've been told that the budget for the project has been changed and that they're only able to offer me £550/day. I'm currently working full-time and have a few other irons in the fire so it's not really a case of needing the contract, though I was interested in the role/location.

I think what I'm asking is, how much do you think I can trust the agency that the budget has changed? It seems suspicious to me and I'm wary of being fleeced. What do you think the chances are, that if I say I'll accept £575 or walk away, that they'll come back and offer me the £575. Additionally, is there anything I can do to find this out?

Finally, I'm being told that the contract (originally a 6 month contract) is actually only a 5 month contract because I've got a month's notice period to work so the 6 months will start when they make the offer and I'll only get as long as I'm actually there. But that the contract they give me will be shorter because of the Government's tax year. So they'll give me a contract until the end of the Government's tax year, and then a renewal to take the contract up to 6 months from offer date. And then there's lots of chat about how "it's almost certain to be extended afterwards" e.t.c.

Does that last paragraph all sound reasonable/normal? It's all new to me and sounds pretty dodgy but I'm aware I'm approaching this from a point of very little knowledge.

Thanks!

Are you seriously saying you would dismiss £550 per day for the sake of £25?
Would the role\client look good on your CV?
Oh well, each to their own!

[BigRed]

Finally, I'm being told that the contract (originally a 6 month contract) is actually only a 5 month contract because I've got a month's notice period to work so the 6 months will start when they make the offer and I'll only get as long as I'm actually there. But that the contract they give me will be shorter because of the Government's tax year. So they'll give me a contract until the end of the Government's tax year, and then a renewal to take the contract up to 6 months from offer date. And then there's lots of chat about how "it's almost certain to be extended afterwards" e.t.c.

Does that last paragraph all sound reasonable/normal? It's all new to me and sounds pretty dodgy but I'm aware I'm approaching this from a point of very little knowledge.

Thanks!

Reasonable - no
Normal - yes

[jmo21]

It sounds to me like the agent is trying it on at the last minute with the rate drop.

I'd say to him "Look this last minute budget change makes me a little nervous about the project, so I'm going to phone/email Mr Interviewer and ask him what the story is".

If something fishy is afoot, he'll soon change his tune.

He'll probably say "Let me speak to them one more time, as I'm sure they won't want to lose you. I'll explain to them market rate, how it wouldn't look good for them" etc etc.

And lo and behold, I bet he phones back with good news.

[FrontEnder]

If you're earning enough in a perm job to be that bothered about a £550 a day, I'd stick with that.

[northernladuk]

If you're earning enough in a perm job to be that bothered about a £550 a day, I'd stick with that.

A very good point well made.

[SimonMac]

Its very common, the reasons can be many, reduction in budget is a common excuse as its passing the blame to the Client.

You could ask the agent if they took a reduction in their rate too, and if so how much, but you will never get an answer, although what is not said or the say something is said on a phone call usually answers the question for you.

Away from the obvious agent wants a bigger margin, it could be two candidates are put though and one is cheaper than the other, the agent thinks you are a better bet than the other guy so if you can be put though at £25 a day less but last 6 months longer than the other candidate you are better value for them. Also if its a new project the budget might not have been signed off before the advert went out so the PM might have over estimated what he can afford to pay, so the reason given by the agent could be 100% genuine. Lastly there is always the chance that the client might not thing you are worth the higher rate, if you are new to contracting that is a big risk to them which has to be factored in

As others have said (and you alluded to yourself) if your not fussed to take the job walk away and see if the £25 can come back, but £550 now is better than £575 tomorrow.

[seanraaron]

Not much different than estate agents who claim to take an offer to a client, don't and then tell you it was rejected. You just have to take it or leave it.

[pr1]

Not much different than estate agents who claim to take an offer to a client, don't and then tell you it was rejected. You just have to take it or leave it.

that's illegal (agencies are just immoral)