Contract / Rate Cut Decisions

[TFour]

If I don't make some sort of stand at some point, even if it's just to say how far away I believe my rate is from the work I am doing...when am I ever going to get anything more?

I also just thought - I am actually doing two people's roles at the moment - they are already saving money by me covering both.

[BlueElise]

Leave ... now. I'm sure you will get another role straight away, the market is wonderful and there are plenty of high paying jobs. Some other poor sap who has been on the bench for 5 or more months will just have to do your job instead.

[centurian]

If I don't make some sort of stand at some point, even if it's just to say how far away I believe my rate is from the work I am doing...when am I ever going to get anything more?

I also just thought - I am actually doing two people's roles at the moment - they are already saving money by me covering both.

That's the problem with ever accepting a rate cut - you set a precedent.

Bringing in my earlier poker analogy, there's no such thing as a truly 'new' hand, because each player's actions in previous hands determine how other players react in future hands.

To put it bluntly, they think you don't have any balls. You either need to demonstrate they're wrong (where they might call your new hand) - or go to another game, where the players don't know about your playing history (i.e. leave).

Accepting a rate cut is sometimes neccessary - something is better than nothing. Sadly the cost can turn out to be greater than the headline cash amount - and can last well after the recession has ended.

[EddieNambulous]

but with a baby on the way what I should be doing financially is lining the coffers. I am just really struggling mentally with the current position.

Another crucial element to add to the mix.

Tough call - only you can make it.

But I would say, from personal experience, that it is sometimes better to feel better about a situation first and look at it from an unemotional (and more impartial) viewpoint then make a decision rather than rush hastily and emotionally into something you might later regret.

Once you no longer feel "ripped off", you might see things more clearly...but then again, you might no longer feel like leaving.

[kaiser78]

In the current market a 10% drop is not too bad. Bear in mind the overall job market situation, appreciate being offered the extension and just get on with it.

As one poster said you keep looking for another role, although rates generally are still down from 8-12 months ago.

[rootsnall]

In my game the 'market' rate is probably 30% down on what it was a year ago, so 10% possibly isn't bad !?! If the job and location is OK then calm yourself down ( sometimes not easy when rate haggling ) and see how the land lies in 6 months time. That 10% off makes you cheaper and more likely to be renewed than rival contractors. For local cushy work I often pitch myself below the market rate for that reason.

[BolshieBastard]

Well for a start, I wouldnt listen to anyone telling to to take option 4. The market is generally pants around this time of year. Factor in the state of the market and, is it worth being a grand plus a week out of pocket over a 10% rate cut ie you'll get nothing at all.

Do not believe other contractors who tell you they havent had a rate cut applied etc, etc. They all say that. I work with some decent contractors who told me they havent had to supply this or that info to the client but I know for a fact they have.

TBH, I'd grin and bear it and take the rate cut but, look for something else (if there is anything in your specialism).

Its too easy for others to tell you to walk when they dont have to. Besides, rate cuts are a fact of life when the market is poor.

[swamp]

At the end of the day when it comes to rate cuts I think it's best to be the slimy little ****er who creeps to the boss and asks to be made an exception, or suggests 5% instead of 10%, say.

Ask yourself would Sir Humphrey Appleby (fictional character from Yes Minister) accept a 10% rate cut? Hell no. He would probably get a rate rise!

[Gonzo]

At the end of the day when it comes to rate cuts I think it's best to be the slimy little ****er who creeps to the boss and asks to be made an exception, or suggests 5% instead of 10%, say.

Ask yourself would Sir Humphrey Appleby (fictional character from Yes Minister) accept a 10% rate cut? Hell no. He would probably get a rate rise!

But time for a snippet of Yes Minister script:

Sir Humphrey: "Prime Minister, as Cabinet Secretary I am, of course, most eager to reduce public spending, but as Head of the Civil Service, I am responsible for the very real dangers which will arise administratively if a pay rise does not come through very soon. It's so difficult for me, you see, as I am wearing two hats."

Jim Hacker: "Yes, isn't that rather awkward for you?"


Sir Humphrey: "Not if one is in two minds."


Bernard Woolley: "Or has two faces."

[Support Monkey]

If I don't make some sort of stand at some point, even if it's just to say how far away I believe my rate is from the work I am doing...when am I ever going to get anything more?

I also just thought - I am actually doing two people's roles at the moment - they are already saving money by me covering both.

Your absolutely right to make a stand, People seem to forget that as a contractor you are a business working for yourself, get a builder (or any business) round to your house tomorrow and tell them what you want doing then in a weeks time tell them you have a load more work you want doing and you expect them to not only do the work but your going to pay them less than you originally agreed, they are going to tell you to "JOG ON" so why should your business be any different.

Its your business (forget what other contractors are doing\getting paid) get in there and renegotiate, lay it on the table give them all the reasons your expecting an increase and not a drop in rates, and as someone has said be prepared for the consequences.

And one last thought, As contractors these kinds of issues are going to come up for all of us at some point so if there are some contractors who are not prepared for the consequences of failed negotiations or loss of business they really should be thinking long and hard about whether they should be contracting in the first place