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contract negotiation

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    contract negotiation

    Hi,

    I wonder if some experienced contractors can give some advice on contract pay negotiation

    I was a IT contractor from 2006/2009 but gave up to do the 'start a family' thing.

    Started contracted again last year (at the same place - a very large Military/Aerospace company)

    Had an okish rate on a 3 day week, 6 month contracts with agency. I thought I've been out loop for a while this is ok + 3 days is my max.

    They just presented me with new 12 month contract so is this the time to ask for a raise or not rock the boat

    (I'd say they are pretty dam short on the ground with people)

    e.g. say for arguments sake I'm on £380 per day, but looking around market rates are really £400/£450pd+ for this sort for stuff - I'd be happy with a small increase to £400 to commit to another year on 3 days a week.

    In a nutshell, I guess the question is - am I fanning about for an extra £20pd or is a 5% increase too much to expect is that how they calculate it?

    Am I green - should I know what my agency charge me out at - is that something I should know?

    I feel I'm cramming 4 days work in 3 days sometimes when its busy, plus I check stuff at home when not there answer queries etc.

    Many thanks for your help.

    #2
    Originally posted by domainer View Post
    I was a IT contractor from 2006/2009 but gave up to do the 'start a family' thing.
    So now you've bumped them all off it's back to contracting ? Charming...

    Boo2

    Comment


      #3
      What are you doing extra to warrant a raise? Delivering more? Adding more value than agreed?

      Rate rises have been discussed in great detail many times already. Have a dig through these threads. Am sure it covers most of it.

      https://www.google.co.uk/search?q=ra...obile&ie=UTF-8
      Last edited by northernladuk; 27 March 2016, 20:34.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Are the higher rates you see based on doing a 3 day week or 5?
        If 3 days per week is your max on site, could you work the other 2 from home, thus giving you a 40% increase in days worked and money earned?
        When you say "market rate" do you actually mean "agents advertised rate", or have you asked other contractors what they are getting paid to do the same role?
        {emotionless greeting}

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        Comment


          #5
          Agency (and client) probably won't tell you what the agency charges, and your contract may forbid you from asking the client.

          Agency can probably afford the increase on their own quite easily without going back to the client. And they can easily go back to the client, if the client is happy, and ask for an extra £20 / day. Agency may be underpaying you and making a nice profit, or they may be taking the normal cut, but either way, they've got some cushion on a renewal. A 5% raise is over inflation, but not that much. Your take-home is about to take a hit, too, with the dividend tax. And you're committing for a year.

          As noted, you may be taking a cut because you are only a 3 day guy.

          I said on another thread I'm asking for 4% increases this year, and would settle for less, but not for nothing.

          If I were in your position and I really thought the market rate is £400-450, and I thought I was providing above average value, I'd say exactly that to the agent. "I'm providing above average value, market rate is £400-450, since I'm only 3 days I'm not pushing for top rate, but I really should be making £425 / day." And if it were me, I'd add, "And in return, I'm willing to work an extra 30 days over the course of the contract if there are times when they really need it." (That's 2 1/2 days a month, on average).

          And then settle for £400 when they counter-offer that, but say no extra days comes with it. Then, you got what you set out for but they feel like they've accomplished something in the negotiations, and everyone is happy. Even agents are human and like to be happy.

          Comment


            #6
            Thank you for your helpful replies.

            I forgot to consider the agency *could* absorb the rate, out of interest, what is agency putting on a daily rate (ballpark) - what would be the min 10%?

            I forgot to add I've been offered the top rate by other agency last year, but would entail working for plebs on darkside I suppose its a bit childish to start mention that.


            I hate being driven by money in this game.. always feel like such a spoilt brat..anyway... needs must I guess.
            Last edited by domainer; 28 March 2016, 10:15.

            Comment


              #7
              Originally posted by domainer View Post
              Thank you for your helpful replies.

              I forgot to consider the agency *could* absorb the rate, out of interest, what is agency putting on a daily rate (ballpark) - what would be the min 10%?

              I forgot to add I've been offered the top rate by other agency last year, but would entail working for plebs on darkside I suppose its a bit childish to start mention that.


              I hate being driven by money in this game.. always feel like such a spoilt brat..anyway... needs must I guess.
              Question to ask yourself here is, are you a business or a charity?
              I'm sure the firm you are working for have no such problems
              The Chunt of Chunts.

              Comment


                #8
                Originally posted by domainer View Post
                I forgot to add I've been offered the top rate by other agency last year, but would entail working for plebs on darkside I suppose its a bit childish to start mention that.
                Childish, or complete gibberish?

                Comment


                  #9
                  Originally posted by jmo21 View Post
                  Childish, or complete gibberish?
                  I would suggest to the OP that Milatary / Aerospace would be dark side enough for most
                  The Chunt of Chunts.

                  Comment


                    #10
                    I have noticed this trend in that nobody seems to want to work for aerospace much - what am I missing out on? I can see its maybe more relaxing and less stress working on non critical systems etc.

                    Space companies taking people to Mars come and go, but people will always want Mars bars in space, and I guess making Mars Bars is a lot easier..




                    Originally posted by MrMarkyMark View Post
                    I would suggest to the OP that Milatary / Aerospace would be dark side enough for most

                    Comment

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