Contract rate cuts

[Nishant]

Hello Friends,

I am trying to understand the pros and cons of contract jobs by combing through the internet. I came to know that the clients can and do ask the contractors to cut the rates by say 10% or leave.

Can someone please tell me how frequent is this kind of phenomenon?

Thanks for your replies on this.

[cojak]

It happens a lot.

Many contractors on this forum have had rate cuts put on them.

Some have refused and left the contract, many have acceoted the cut.

And often it's more than 10%.

[Wanderer]

Thanks for your replies on this.

Check out this thread on Rate Reductions

[mrdonuts]

Hello Friends,

I am trying to understand the pros and cons of contract jobs by combing through the internet. I came to know that the clients can and do ask the contractors to cut the rates by say 10% or leave.

Can someone please tell me how frequent is this kind of phenomenon?

Thanks for your replies on this.

this almost never happens usually you increase a contractors rate if you want to extend them as they have added business value. If you do try to cut their rates mid contract they will most likely hate you and leave,then let everyone else know what a tulip company you are to work with

[northernladuk]

this almost never happens usually you increase a contractors rate if you want to extend them as they have added business value. If you do try to cut their rates mid contract they will most likely hate you and leave,then let everyone else know what a tulip company you are to work with

Rubbish... If you had read the link already posted you would see many of us have suffered an enforced cut at one point or another, sometimes more than once. You also do not usually increase rate. You can if you are lucky renegotiate an increase but this is not the normal.

Why do say 'If you do try to cut their rates mid contract'. He is the contractor not the company. Again, if you read the previous post linked many of us took it on the chin and carry on. We do not 'hate' the company, it is business. We can be annoyed and we have a choice.

Also companies that impose cuts aren't tulip just cause they impose them. Banks are in dire doodoo so it is hard not to expect a cut. It is what we do and part of the risk of contracting.

[cojak]

That may well be an ironic post from mrdonuts...

[northernladuk]

That may well be an ironic post from mrdonuts...

Oh bugger... well it was a crap ironic post instead of a crap advice post then...

[ChimpMaster]

Oh bugger... well it was a crap ironic post instead of a crap advice post then...

Rate cuts are almost inevitable in an economic climate such as that we've had for the past 2 uears.

Some on here have had multiple rate cuts reducing their company income by some 40% (was it Voda?).

If you're looking to contract I would not do it in the UK right now... but that's another story.

[mrdonuts]

He is the contractor not the company..

really (only ever made one post)? sounds more like some HR k nob trying to find out if they can get away with cutting rates

[Kanye]

You lot are a tough bunch!

It's not that commonplace - I know a lot of contractors and don't know of anybody who has ever been asked to take a pay cut.

It does of course happen from time to time as experienced by posters here, but I don't think it can be described as 'inevitable' or 'commonplace'. Especially not on contracts of < 6 months.

Budgets are normally agreed a year or two in advance so maybe more likely on multi year projects.

I would probably walk on principle if asked to take a rate cut, though it is of course completeley fair game for the buyer to do this between contracts. Just as we, as the supplier, are able to ask to raise rates at renewal times.

Having lurked around these forums for a number of years, I'm always surprised at the extent that people see and treat contracting like being a permie. If you don't like the price they are prepared to pay then go and find another job!