Negotiate rate in the middle of the contract
+ Reply to Thread
Page 1 of 2 1 2 LastLast
Posts 1 to 10 of 16
  1. #1

    Nervous Newbie


    Join Date
    Aug 2017
    Posts
    3
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default Negotiate rate in the middle of the contract

    Hi all

    I am new to contracting and I am in the process of an interview for a contract that is for 1 year.
    However the rate that the company is willing to pay is slightly lower than my rate. If the contract was for 6 months I wouldn't have any problem because I could negotiate an increase in the renewal (considering there was one). But now that it is for 1 year is it possible to negotiate a rate increase in the middle of the contract?

    Thanks

    Thomas

  2. #2

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    33,975
    Thanks (Given)
    141
    Thanks (Received)
    1500
    Likes (Given)
    1794
    Likes (Received)
    6108

    Default

    When you say the rate is slightly lower than my rate. You mean the rate that you would like? You said you are new to contracting so how do you know what rate you are worth? Rates can vary wildly from gig to gig depending where you are, who the client is. Sometimes you take a lower rate to keep the money coming in and look forward to better gigs in the future.

    How low are we talking here?

    I'd say there is slim to no chance of mid contract rate negotiation so certainly wouldn't be banking on that.

    You could try neogtiating a 6 month gig but if they bin you you could have done yourself out of some good money.

    Also a rate rise certainly isn't guaranteed after the 6 months either. Why would they pay you more for doing the same thing?
    Last edited by northernladuk; 2nd August 2017 at 22:07.
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  3. #3

    Banned

    malvolio's Avatar
    Join Date
    Jul 2005
    Location
    Walking in the garden, dreaming of Olivia...
    Posts
    10,371
    Thanks (Given)
    0
    Thanks (Received)
    230
    Likes (Given)
    6
    Likes (Received)
    772

    Default

    WHS. As I've said before several times, changing the rate during a contract, other than by re-negotiating the agency percentage (and good luck with that), is totally dependent on you adding more value to the work. They are already paying you to do the best job you can, so unless you're adding something extra there is no reason to give you more money.

    Contracting is not like permie, you don't get paid more simply for doing the time, you have to sell the client why the raise is justified. "Because I'm worth more" is not it, sadly...

  4. #4

    TripleIronDad

    BrilloPad's Avatar
    Join Date
    Aug 2006
    Location
    Divorce Courts
    Posts
    97,934
    Thanks (Given)
    22965
    Thanks (Received)
    6002
    Likes (Given)
    22965
    Likes (Received)
    10192

    Default

    You can tell them if there is no increase then you will terminate the contract.

    It will give them a good laugh.
    I keep pushing forwards but they keep pushing me backwards. So I have new rules. 1. Don't feed the trolls you know they have no souls. 2. Don't respond to them they'll only post back back again. 3. Don't be their friend they'll only knife you in the back. I have new rules I count them.

  5. #5

    Ddraig Goch


    Join Date
    Apr 2011
    Location
    Cymru
    Posts
    9,206
    Thanks (Given)
    89
    Thanks (Received)
    173
    Likes (Given)
    1176
    Likes (Received)
    526

    Default

    Mid-contract = not a chance in hell.
    End of first extension = bob hope and no hope
    Chance of agency cutting margin = slim
    Chance of client increasing = slim

    I've found that clients think the rate is good for the next 99 years. Same with agents - they've got their margin and they won't let it go.
    Rhyddid i lofnod psychocandy!!!!

  6. #6

    Prof Cunning @ Oxford Uni

    WTFH's Avatar
    Join Date
    Nov 2012
    Posts
    10,702
    Thanks (Given)
    462
    Thanks (Received)
    1543
    Likes (Given)
    1460
    Likes (Received)
    3917

    Default

    If you are only at the interview stage, then you can negotiate your rate should you get to the point of being offered a contract.

    If you're new to contracting you might find the rate you think you are worth is not the rate everyone else thinks your worth. Apart from level of experience - and I don't mean qualifications, but actual work, there's also the number of people applying for the role, their level of experience and their (and your) ability to present themselves as knowledgeable and capable of delivering.

    If you're really new to contracting, here's a tip about advertised rates:
    Say a job is advertised at 350-450 per day by an agent. An experienced contractor (10 years plus) would probably get offered 420-440. One with less than that might be 380-400, less than 2 years and you'll be looking at 300-320. (These are made up figures, but are to give you a feel for it). So if the job is 350-450 and you decide that with very little experience that you should get at least 450, then you're in for a shock when you get offered 300.

    But flipping that around, if you have not even reached the stage of being offered the contract, so you haven't even started discussing contract rates with the agent, then you've either applied for a job that you know pays too little (but you need the work), or the agent knows the market and knows what you're worth.
    Strong and Stable Moderation

  7. #7

    Fingers like lightning


    Join Date
    Feb 2016
    Posts
    661
    Thanks (Given)
    0
    Thanks (Received)
    41
    Likes (Given)
    4
    Likes (Received)
    170

    Default

    Quote Originally Posted by WTFH View Post
    But flipping that around, if you have not even reached the stage of being offered the contract, so you haven't even started discussing contract rates with the agent, then you've either applied for a job that you know pays too little (but you need the work), or the agent knows the market and knows how big a margin he can take form you.
    FTFY

  8. #8

    Super poster


    Join Date
    Sep 2008
    Posts
    2,688
    Thanks (Given)
    49
    Thanks (Received)
    110
    Likes (Given)
    35
    Likes (Received)
    279

    Default

    Quote Originally Posted by ThomasTor View Post
    I am new to contracting and I am in the process of an interview for a contract that is for 1 year.
    However the rate that the company is willing to pay is slightly lower than my rate. If the contract was for 6 months I wouldn't have any problem because I could negotiate an increase in the renewal (considering there was one). But now that it is for 1 year is it possible to negotiate a rate increase in the middle of the contract?
    As you are new to contracting and your rate is only slightly lower than you expect, take it to build up your contracting experience.
    Otherwise as per other posters comments.
    ______________________
    Don't get mad...get even...

  9. #9

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    33,975
    Thanks (Given)
    141
    Thanks (Received)
    1500
    Likes (Given)
    1794
    Likes (Received)
    6108

    Default

    Quote Originally Posted by FrontEnder View Post
    FTFY
    Yep. Mustn't forget the Newbie tax.
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  10. #10

    TripleIronDad

    BrilloPad's Avatar
    Join Date
    Aug 2006
    Location
    Divorce Courts
    Posts
    97,934
    Thanks (Given)
    22965
    Thanks (Received)
    6002
    Likes (Given)
    22965
    Likes (Received)
    10192

    Default

    Quote Originally Posted by psychocandy View Post
    Mid-contract = not a chance in hell.
    End of first extension = bob hope and no hope
    Chance of agency cutting margin = slim
    Chance of client increasing = slim

    I've found that clients think the rate is good for the next 99 years. Same with agents - they've got their margin and they won't let it go.
    20 years ago it was 10%-30% each extension.

    <sigh>
    I keep pushing forwards but they keep pushing me backwards. So I have new rules. 1. Don't feed the trolls you know they have no souls. 2. Don't respond to them they'll only post back back again. 3. Don't be their friend they'll only knife you in the back. I have new rules I count them.

+ Reply to Thread
Page 1 of 2 1 2 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.