What to do in negotiations

[BlackenedBiker]

I have been offered a 13 months extension to my contract. I know that this is good news given the current climate and I am very grateful. However, the rate is not stellar and I am keen to negotiate a rise.

I am looking at a rate rise of about 22%.

However because it is a 13 month extension I think that the agency should lower their % cut. I have insider knowledge (the Agents are not aware of this) that they are charging 20% for me. I think that for a 13 month extension they should be charging around 13%.

I would be very grateful for strategies on how to make all parties see my point of view.

Thanks in Advance.....

[Torran]

Why do you deserve an increase? The reasons given in your post are not enough in isolation.

[BlackenedBiker]

A good question, but essentially I am working as a technical architect managing 2 offshore teams for the rate of a developer.

I have been doing it well and accepting my rate for 6 months. Now they have offered a 13 month extension (indicating that they are very happy) and I believew that the rate should reflect the work.

Please be aware the is still, even with the increase some 25% off the rate for such a position in 2007/8

[pmeswani]

Why do you deserve an increase? The reasons given in your post are not enough in isolation.

1. The OP has been offered a 13 month extension. That implies that the client is sufficiently happy with the work in order to offer such an extension.

However, to answer the OP's question... You can tell the agency that in order for you to accept the 13 month extension, you would like rate increase in order to keep you sufficiently interested not to look elsewhere (subject to your handcuff clause.. etc) after you have signed the contract.

Some people may suggest telling the agency that you know that they are taking a 20% rake... however, personally, I wouldn't bother. That information is suppose to be confidential between client and agency. The fact that you know, may upset the agent if they are told of this. However, I would wait for others to offer advice on this area.

[nomadd]

Some people may suggest telling the agency that you know that they are taking a 20% rake... however, personally, I wouldn't bother. That information is suppose to be confidential between client and agency. The fact that you know, may upset the agent if they are told of this. However, I would wait for others to offer advice on this area.

Just tell them "20% is insane in the current market" and they are "greedy fookers." That should break the ice nicely. I would. But, hey, that's just me.

Then look to split the difference, say go for a 10% rise. I think any more just isn't going to happen. NB. It doesn't matter that your rate is so low - that's your fault for accepting it in the first place, not the agents; so going back and looking for 20% plus is just going to make you look a greedy b'stard in the eyes of the client - and yes, the agency will tell them that, along with the 200 cv's they send through to get you replaced.

All cleared up now. Have a nice day.

Nomadd

[BlackenedBiker]

Just tell them "20% is insane in the current market" and they are "greedy fookers." That should break the ice nicely. I would. But, hey, that's just me.

Then look to split the difference, say go for a 10% rise. I think any more just isn't going to happen. NB. It doesn't matter that your rate is so low - that's your fault for accepting it in the first place, not the agents; so going back and looking for 20% plus is just going to make you look a greedy b'stard in the eyes of the client - and yes, the agency will tell them that, along with the 200 cv's they send through to get you replaced.

All cleared up now. Have a nice day.

Nomadd

Nomadd,

I do appreciate your reply.

However, are you aware that this is Business/Contracts and not General. A more serious tone is appropriate here.

[Sausage Surprise]

I have recently found out the the agency is charging the client £450 a day for my services - I get £300. I didn't tell them I knew of this but asked for a modest £25 a day rise at renewal last week. They refused!
I am walking tomorrow as I have found something more lucrative.

[Torran]

1. The OP has been offered a 13 month extension. That implies that the client is sufficiently happy with the work in order to offer such an extension.

However, to answer the OP's question... You can tell the agency that in order for you to accept the 13 month extension, you would like rate increase in order to keep you sufficiently interested not to look elsewhere (subject to your handcuff clause.. etc) after you have signed the contract.

Some people may suggest telling the agency that you know that they are taking a 20% rake... however, personally, I wouldn't bother. That information is suppose to be confidential between client and agency. The fact that you know, may upset the agent if they are told of this. However, I would wait for others to offer advice on this area.

You have missed the point. The OP is looking for 22%, the agency margin is 20%. he is going to need something a bit stronger than the client is happy to extend. The client is going to need to put hands in pocket to meet expectations.

[Torran]

I have recently found out the the agency is charging the client £450 a day for my services - I get £300. I didn't tell them I knew of this but asked for a modest £25 a day rise at renewal last week. They refused!
I am walking tomorrow as I have found something more lucrative.

Been there, had that. Despite my scope doubling and responsibilities increasing

[pmeswani]

You have missed the point. The OP is looking for 22%, the agency margin is 20%. he is going to need something a bit stronger than the client is happy to extend. The client is going to need to put hands in pocket to meet expectations.

I think you misunderstood my reply. . I didn't say that the OP should tell the agency that the client my suggestion.... I'm just stating a point that the client is happy with the work, otherwise they wouldn't extend. What the OP needs to do is to find out why the client is happy to extend.

The agent and the OP need to negotiate a decent rate increase that is mutually benificial to all parties... 22% may or may not be achieveable in the current market.