Extension, but agency refuses rate increase

[Eirikur]

Got an extension on my contract, but I asked the agency for a small increase due to increased responsibilities and tax burden.
End client refused and agency refuses to pay it from their 15% slice, which they enjoyed for 5 months, it would still leave them with 10% for which all they have to do is pay me once a month.
Have a few promising things in the pipeline but nothing concrete so far, higher rates and closer by (now commute 190 miles per day)
Should I call the agencies bluff and say I will decline?

[stek]

Got an extension on my contract, but I asked the agency for a small increase due to increased responsibilities and tax burden.
End client refused and agency refuses to pay it from their 15% slice, which they enjoyed for 5 months, it would still leave them with 10% for which all they have to do is pay me once a month.
Have a few promising things in the pipeline but nothing concrete so far, higher rates and closer by (now commute 190 miles per day)
Should I call the agencies bluff and say I will decline?

How's the war chest?

[Eirikur]

How's the war chest?

Company War chest would keep me going for 1 year at my current spending level. Private savings another 2-3 years at reduced spending level

[SlipTheJab]

Company War chest would keep me going for 1 year at my current spending level. Private savings another 2-3 years at reduced spending level

In that case tell them to shove it, and tell the client why, they WILL back down as its free money to them right now HTH.

[northernladuk]

Got an extension on my contract, but I asked the agency for a small increase due to increased responsibilities and tax burden.

Tax burdens are no ones problem but yours.. and can't be much or a burden if all you need is 5%. It really depends on how you put it to them but if you mentioned the word tax you've done yourself no favours. Increased responsibilities would indicate you are working outside your contracted duties and/or are being directed by the client so some issues there but as a contractor we don't really get paid at this micro level. IMO there is quite a wide range of responsibilities before you can go cap in hand. We often work to a rate card i.e. a PM, an SDM etc.. Responsibilities will vary as will the rates. I don't think I do x more so want y cash is an argument that will work. If the agent is going to stump up the cash it doesn't need an excuse like this and if the agent isn't going to stump it up this excuse won't make one iota of difference.

End client refused and agency refuses to pay it from their 15% slice, which they enjoyed for 5 months, it would still leave them with 10% for which all they have to do is pay me once a month.
Have a few promising things in the pipeline but nothing concrete so far, higher rates and closer by (now commute 190 miles per day)
Should I call the agencies bluff and say I will decline?

Well if you aren't going to call their bluff then you are wasting your time and they will know it. They do this for a living and will know if someone is bluffing. In 99.99% of times, will a contractor walk if they don't get a 5% rise??? I mean, quitting a gig for 5%.. really???

15% is by no means taking the piss in some situations either. We seem to agree on the forums 12% is about right for a fairly standard set up. Lower for big clients with big agents with slick processes to get contractors on site, more for small agents with clients that don't have many contractors. You are very close to the level where it is highly possible that you are just not going to be worth keeping if you push for 10% so it's your call..

but IMO... all this for 5% if you like the gig is a lot of bother.... You don't get if you don't ask but the risk has to be worth the reward.

[SlipTheJab]

Tax burdens are no ones problem but yours.. and can't be much or a burden if all you need is 5%. It really depends on how you put it to them but if you mentioned the word tax you've done yourself no favours. Increased responsibilities would indicate you are working outside your contracted duties and/or are being directed by the client so some issues there but as a contractor we don't really get paid at this micro level. IMO there is quite a wide range of responsibilities before you can go cap in hand. We often work to a rate card i.e. a PM, an SDM etc.. Responsibilities will vary as will the rates. I don't think I do x more so want y cash is an argument that will work. If the agent is going to stump up the cash it doesn't need an excuse like this and if the agent isn't going to stump it up this excuse won't make one iota of difference.



Well if you aren't going to call their bluff then you are wasting your time and they will know it. They do this for a living and will know if someone is bluffing. In 99.99% of times, will a contractor walk if they don't get a 5% rise??? I mean, quitting a gig for 5%.. really???

15% is by no means taking the piss in some situations either. We seem to agree on the forums 12% is about right for a fairly standard set up. Lower for big clients with big agents with slick processes to get contractors on site, more for small agents with clients that don't have many contractors. You are very close to the level where it is highly possible that you are just not going to be worth keeping if you push for 10% so it's your call..

but IMO... all this for 5% if you like the gig is a lot of bother.... You don't get if you don't ask but the risk has to be worth the reward.

Its the principle man!

[northernladuk]

Its the principle man!

Oh yeah sorry...

Go on OP.. Stick it to the lying scumbag cockwomble agent. You show him who's boss. Don't take no crap and don't roll over for no one!!

For the Horde Contractors....

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[Hobosapien]

Only times I've asked for an increase in the run up to accepting an extension or I'll not sign, and meant it if I didn't get it, is when it involved expenses.

It's a more legitimate reason for wanting more if you find the hotels or costs of commuting (train/fuel prices) are more than you estimated when originally signing up, or you've been there so long that the next renewal will take you over the 24 month rule.

So with the expenses changes in play now (for those caught by IR35) the agents will be more aware of rate queries and already know that those working away from home have certain overheads that impacts the rate they're willing to work for.

So even if you are happy with the expenses (assuming you claim any) it may still be a better bargaining stance than expecting any sympathy over tax!

[SimonMac]

Should I call the agencies bluff and say I will decline?

Depends, do you have the balls to go through with it?

[SlipTheJab]

Oh yeah sorry...

Go on OP.. Stick it to the lying scumbag cockwomble agent. You show him who's boss. Don't take no crap and don't roll over for no one!!

For the Horde Contractors....

FOR ONE!!! FOR ALL!!!!! IPSE+ Membership Available Here

If I give you 100 notes in Amazon vouchers will you stop this?