Contract renewal - rate cut request

[Bear]

Agreed - talk to the client - it's the only way to know for sure.

Similar at my ClientCo. Massive programme of work, just had budget all agreed, then discovered (through a totally separate division) that Contractor rates are falling due to large numbers on the bench and so have imposed a blanket rate cut at renewal for all Contractors.

Agency lose out, Contractor loses out.

[opc]

Rumours are at my clientco that renewals beyond end March will attract a 10% cut in rates. The CIO has apparently been quoting that BP and Microsoft have done the same.

This is an easy sum to me though.
10% cut on an hourly rate? Work 10% more hours
10% cut on a daily rate? Work 10% less hours

I know the sums aren't exactly right but you get the jist.

[Fred Bloggs]

Rumours are at my clientco that renewals beyond end March will attract a 10% cut in rates. The CIO has apparently been quoting that BP and someone else have done the same.

This is an easy sum to me though.
10% cut on an hourly rate? Work 10% more hours
10% cut on a daily rate? Work 10% less hours

I know the sums aren't exactly right but you get the jist.

Makes sense if you can do it that way I guess.

[sal626]

Rumours are at my clientco that renewals beyond end March will attract a 10% cut in rates. The CIO has apparently been quoting that BP and Microsoft have done the same.

This is an easy sum to me though.
10% cut on an hourly rate? Work 10% more hours
10% cut on a daily rate? Work 10% less hours

I know the sums aren't exactly right but you get the jist.

I doubt BP would be cutting rates, with the all the money they have made last year.

I'm contracting for another oil company since Jan, they actually gave me a £20 a day increase....although slightly different case...they realised that the agent was trying to make a commission on me and them, so forced agent to hand over £20 of his commission to me....hahahaha

[Fred Bloggs]

I doubt BP would be cutting rates, with the all the money they have made last year.

I believe they did already by 10% across the board.

[Hex]

I've got the same, just been offered another 3 months but at £10 a day less. I just accepted it as I can’t be arsed to argue.

Please send me a cheque every day for £10. No arguing mind.

[Mr Crosby]

Please send me a cheque every day for £10. No arguing mind.

No chance mate I'm already being done up the asre by one ****er.

[AnthonyQuinn]

Depends on who is asking for the cut.

Agree with folks out there.

Talk to client. If its the agent who has initiated it, you shouldnt need to take the cut. Tell the client that the agent has asked for the cut and shame him/her.

If its the client then dont bother explaining your value to them. Its demeaning and doesnt change anything. They should already be aware of it and the manager would just be following orders by asking for the cut and isnt really saying that you are worth 10% less.

Explaining replacement cost effectively means that you are saying that you will be leaving unless they continue on the same terms. Your manager should already know the cost of replacement and no-one likes to be told their job. If the cost reduction isnt acceptable to you then explain why (Market rates, other preospective offers etc). This is your decision to push back on the rate decrease request and not for them 'not to ask for it'.

[Tensai]

I doubt BP would be cutting rates, with the all the money they have made last year.

I believe they did already by 10% across the board.

Not quite as "across the board" as they like to make out, about 10% were spared for reasons no-one has been able to make clear.

... and there are probably more to come, they are adjusting for "market conditions." I will ensure I mention that to them when things have picked up again and I fancy a rate rise mid-contract.

[opc]

I believe they did already by 10% across the board.

I should add that my clientco also made megabucks last year. Personally I think they're using the credit crunch as an excuse to take the piss.