How to deal with a long term contract extension offer?

[Darren_Test]

Hi Guys,

My friend got a long term contract offer with his current client where he is comfortably placed for last 6 months on contract. He is keen to accept the offer but since is new contract is for longer term want to get daily rate raise rather than having nearly 1.5 years same contract daily rate. How this can be effectively fed back to the agency to ensure this results in increase in contract daily rate without annoying the client.

Please help those who dealt this type of situation successfully with agencies .

[tarbera]

Should he not ask HR of his employer ?

This is a contracting board

[Darren_Test]

Should he not ask HR of his employer ?

This is a contracting board

Aware this is contacting board (member from 2007) ie why related question posted, probably my question might have mis-read.? wrongly..?

[washed up contractor]

Hi Guys,

My friend got a long term contract offer with his current client where he is comfortably placed for last 6 months on contract. He is keen to accept the offer but since is new contract is for longer term want to get daily rate raise rather than having nearly 1.5 years same contract daily rate. How this can be effectively fed back to the agency to ensure this results in increase in contract daily rate without annoying the client.

Please help those who dealt this type of situation successfully with agencies .

Well unless your 'friend' is awash with firm job offers, does he not think 100% of his current day rate is better than 100% of nothing? Some people in the current market would just be happy to have an extension. And in fact one or two agents who have spoken to me suggested people should try and secure an extension rather than move on. Obviously, every individual has to make that decision though.

As always when wanting an increase in day rate, you need to prove your case it is warranted. It may or may not help if your 'friend' gives the impression they will turn down the extension if there is no increase. This is 'made aware' by telling the agent unless your friend is direct in which case, the client's HR needs to be 'made aware.'

Some people say if you ask and dont get, you end up looking like a tit. Im not sure that is the case unless you have really mouthed off about wanting an increase or walking.

[tarbera]

Aware this is contacting board (member from 2007) ie why related question posted, probably my question might have mis-read.? wrongly..?

Ahhh you have changed "Employer" to "Client" makes sense now

If it's market rate bite there hand off

1 week on the bench would blow any increase anyway

[northernladyuk]

Could your friend get the employer to sweeten the deal with improved car parking facilities?

[WTFH]

1. Why does he think he deserves an increased rate?
2. How much of an increase is he wanting? 1%? 5%? 20%?
3. Does he think the agent will just suck up a reduction in their take without demanding an increase from the client?
4. Have you advised him on how you've got increases in your rate over the last 10 years?

For me short term = higher rate, long term/perm = lower rate.
And for most businesses, if a customer wants to work with a supplier for a a higher volume of business, they are expecting that the supplier will be pleased with the opportunity of the trade arrangement and will reduce their prices to secure the contract, not increase them.

[ladymuck]

It also depends on the relationship with the client.

I have been quite lucky in having good working relationships and have often broached the topic with the hiring manager who holds the budget. They then say whether they have wiggle room or not. Often they have then gone to the agent to change the day rate on the renewal paperwork.

Other times, I have used the agent to negotiate a rate rise but only on gigs where I've been there a year or more. I don't think a 6 month gig, unless you've gone well above and beyond*, warrants a rate rise. If your agent isn't a tw@t, you can ask about the chances of a rate rise.


* waffle about how you shouldn't do stuff that's not in the contracted scope

[Lance]

1. Why does he think he deserves an increased rate?
2. How much of an increase is he wanting? 1%? 5%? 20%?
3. Does he think the agent will just suck up a reduction in their take without demanding an increase from the client?
4. Have you advised him on how you've got increases in your rate over the last 10 years?

For me short term = higher rate, long term/perm = lower rate.
And for most businesses, if a customer wants to work with a supplier for a a higher volume of business, they are expecting that the supplier will be pleased with the opportunity of the trade arrangement and will reduce their prices to secure the contract, not increase them.

This^^^^^

Sounds like the guy is just greedy. Longer term = lower rate. On what planet do you pay more if you buy in bulk?
Perhaps the person should refuse a long term at the offered rate, take a shorter term and ask for more money. That makes more sense but not much more.

[northernladyuk]

This^^^^^

Sounds like the guy is just greedy. Longer term = lower rate. On what planet do you pay more if you buy in bulk?
Perhaps the person should refuse a long term at the offered rate, take a shorter term and ask for more money. That makes more sense but not much more.

I doubt that the client is committing to the full term. There is likely to be a termination clause