Mid contract negotiations (rate increase)

[northernladuk]

I have re-negotiated my rates mid contract twice and I have got it both times. There are no empirical formulas nor a accepted procedure/practice. Judge your circumstances, weigh all the results of the outcome and be prepared to be 'equally' happy to deal with any outcome.

This how the scenarios unfolded

1st Renegotiation

At a Merchant Bank in the City got a 10% rate cut (around the time Lehman went Bust) - looked around for a role - got one, asked for the old rate to be reinstated 6 weeks into the reduced rate, had a 24 hr Mexican stand-off - but got the rate restored.

2nd Renegotiation

A different Merchant Bank in the City, was recruited as a senior technical consultant - but 3 months into it became the project manager, lead BA, technical guy, test co-ordinator /manager - asked for a 100 quid/day more and I got it.

I have subsequently have had a 10% rate cut (mid-contract!!!)

Both good news but with my pedantic head on one is fighting off a cut and the other is a new contract which should command a new rate (else you will be under client direction) so in neither case have you actually challanged a running budget. A rate increase against a planned burn rate causes a different set problems. If you were an agent it would be different if you were just taking a better part of his cut. You didn't mention if this was via an agent or not.

These examples are not quite the same as the OP just asking for an unqualified rate rise cause they think they are worth one.
[quote]

- I dont cite inflation, mortgage rates, cost of living, kids, holidays etc and ask for a raise mid-contract - unlike clients who talk about market conditions / quarterly result and apply a rate-cut.

Love this. The number of times contractors believe they need a rate rise because they are now over the 24 month rule etc. Like your personal costs are an issue to the agent/client. What is an issue is if you are willing to walk fair enough, but your extra travelling costs are no business of theirs.

As far as reputation and burning bridges go - most agents/clients have a short memory and besides I don't want to do business with people who carry baggage of dented egos.

Nice point.

[FreeAgent]

the other is a new contract which should command a new rate (else you will be under client direction)

I had the agent re-write the contract - with responsibilities etc changed.

so in neither case have you actually challanged a running budget. A rate increase against a planned burn rate causes a different set problems.

Agree - but in the second case maybe they had a budget - or they were just looking to do it on the cheap

If you were an agent it would be different if you were just taking a better part of his cut. You didn't mention if this was via an agent or not.

Unfortunately, most agents I have worked with have been useless in dealing with the client - so I don't involve them, I renegotiate direct with the end client.

These examples are not quite the same as the OP just asking for an unqualified rate rise cause they think they are worth one.

Agree - I thought his role had changed. In my case, everyone in the bank assumed I am in-charge of the project - including the MD running the division, so getting a new contract with the right rate was a no-brainer.

I am glad you liked some of the comments - I hate contractors/umbrellas who cannot get out of permie mindset and treat expenses as 'perks' on the 24-month clause etc- they are business expenses. No wonder HMRC is peed off and wants to correct the situation.