Extensions

[morphman]

Guys.

Bit of friendly advice if I may?

When being offered an extension, what are your views on asking for a higher rate for the period of the extension?

My current role may get extended, but it is very far from home, and although the rate is fine if I actually lived at home, it is costing me more than expected to live away from home during the week.

ANyone had experience with this?

Of course I can look for another contract. And in this market theres a good chance of just winging it and getting one, but Id like to know all the options.

btw, my contract is with the government. Not sure what their policies are.

[Underscore]

Always ask! They can only say no. Ask for about 15% then settle for 10%

[WouldBeEntrepreneur]

Definitely ask - cite the reasons too:

i) the excellent work you have done already = proven value
ii) familiarity gained with the systems = productivity gain
iii) familiarity gained with the people = productivity gain
iv) familiarity gained with the business = productivity gain
iv) rise in market rates for your skills

Overall you are now too cheap for the value you are giving them.

Personal reasons are a bit of a no no in my opinion, stick with sound business reasons.

[BlasterBates]

Another strategy is to hire a call girl and get photographs of your project manager in a comprimising position. This usually adds about 30% to your rate.

[Underscore]

Damn - Is that you smith?

ps ANother thing to consider - try and find out the internal charge rate. If that has gone up say £20 a day then the budget is there for your pay rise.

[NOTiFY]

Personally and with out wishing to sound like a grumpy old contractor. I've been contracting for 26 years. My tact on this is;

a) If the contract was for six months at rate £x and you took it you would have been happy for six months.

b) If the contract was for 3 months at rate £x and you took it, again you would be happy.

So why if it was contract b) would you want £x+y for a further three months? For the first extension I would ask if it was at the same rate? If they said yes I would sign. They may say we can offer you a small rate increase.

If they offered a second extension I would ask for a rate increase then.

My 2 pence worth!

[WouldBeEntrepreneur]

I agree with you Notify ... I think you need to guage the individual circumstances though and what budget might be available.

[rebeccaloos]

agree with Notify too... always depends on market conditions of course, but it's not generally necessary to ask for a rate rise after 3 months.... but it is after 6.

[darmstadt]

but it is after 6

Well I kind of finish this one at the end of the year (there was no end date in the contract but there is no work, I think) but should I ask for a rate rise after 18 months?

[oaksoft]

Remove the emotion

In business you need to be dispassionate.

What could you sell your services for today in an open market?
If you don't have a dickie bird then frankly you should be shot.

Then look at current rate.

If current rate < expected rate in open market then
either TELL them your rate will increase to X or go elsewhere.

What is all this "asking for a higher rate" pseudo-permy nonsense? Is it me? Probably

In the face of IR35 we are all supposed to be genuine businesses and yet many contractors are too scared to even put their rates up a pound or two.
I must be missing something.