Rate increase

[kermitt]

Working directly with Client Co I am nearing completion of a 6 month contract. They offered me perm but have turned it down.

Now that they are expecting to be busier next year they have offered a 3month extension to help tide them over. There will be two new guys adding to the group taking us up to five in total but neither one knows anything about what we do yet. Therefore the supervisor will need to train them which could take 6 months or so.

With that in mind I consider that as being the next most experienced alot of the work will fall on my lap as well as assiting the new employess get to grips with things. Plus if any of the proposals I am working on are awarded as projects then I will be flat out. If I leave then they are gonna struggle badly to get the work done properly if at all.

Current rate is ok but could be better. Hence why I am gauging if this is a good opportunity to increase my rate for next year on the grounds of increased workload, more responsibility etc. I think I am justified, do you? Feel free to poke holes in my argument before I ask Client Co.

I am on the lookout for other gigs but have no firm offers at the mo. Have a good feeling about an interview that is next week. Trouble is the bad weather has delayed getting this sorted before now.

[jmo21]

Certainly the best time to ask, and if they really will be using you as a crutch so to speak then maybe they will have no option.

Difficult for us to judge though, you work with these people day in day out.

[Fred Bloggs]

I think you have a good case, particularly when you say that you are being offered 1 year+ jobs but you'd really love to stay for what is only 3 months to help them out.

[scooterscot]

The people who survive this downturn (the endgame is still to come) are the ones who price correctly. If you feel justified increasing your price and that price does not exceed a replacement bum via an agency say at 75% then thread carefully.

After 6 months and instead of an rate increase I'd would be more inclined to angle benefits. For example does your client know how far you travel to get to work and how much that cost is to you? Perhaps you could work from home for a couple of days or a week.

The point is, think about how you can reduce your costs rather than asking your client to support them, you might be surprised at the assistance you'll receive.

[northernladuk]

The people who survive this downturn (the endgame is still to come) are the ones who price correctly. If you feel justified increasing your price and that price does not exceed a replacement bum via an agency say at 75% then thread carefully.

After 6 months and instead of an rate increase I'd would be more inclined to angle benefits. For example does your client know how far you travel to get to work and how much that cost is to you? Perhaps you could work from home for a couple of days or a week.

The point is, think about how you can reduce your costs rather than asking your client to support them, you might be surprised at the assistance you'll receive.

Very good comments!

I am sure we all feel we justify more money but often clients will have a cap and feel that we are overpaid as it is so you have to think about his situation. Are you contractor heavy there? Do you have many different contractors at different levels? It might give you an idea of whether they are flexible and understanding or they just have a set rate and will stick to it.

[swamp]

If they are offering perm and restructuring then now might not be the best time to rock the boat.

Do your three month extension and ask after that. Is there an agency in the loop? If so then it's between you and the agent, and it's not really the client's business.

[Spacecadet]

Working directly with Client Co I am nearing completion of a 6 month contract. They offered me perm but have turned it down.

Now that they are expecting to be busier next year they have offered a 3month extension to help tide them over. There will be two new guys adding to the group taking us up to five in total but neither one knows anything about what we do yet. Therefore the supervisor will need to train them which could take 6 months or so.

With that in mind I consider that as being the next most experienced alot of the work will fall on my lap as well as assiting the new employess get to grips with things. Plus if any of the proposals I am working on are awarded as projects then I will be flat out. If I leave then they are gonna struggle badly to get the work done properly if at all.

Current rate is ok but could be better. Hence why I am gauging if this is a good opportunity to increase my rate for next year on the grounds of increased workload, more responsibility etc. I think I am justified, do you? Feel free to poke holes in my argument before I ask Client Co.

I am on the lookout for other gigs but have no firm offers at the mo. Have a good feeling about an interview that is next week. Trouble is the bad weather has delayed getting this sorted before now.

Assuming that you've got a good working relationship with the bill payer then it sounds like you're in a very similar situation to what I was 2 months ago when I asked for a raise from the client, I was and still am working direct too.

Best advice I can give is to lay all your cards on the table. Explain exactly why you are asking for the raise. Bullet point the reasons, obviously the more the better.
If you're working direct and your rate is similar to what you can get through an agency then there will be room for manoeuvre.

Do not mention other potential clients or that you're thinking of leaving.

If there is anything in the contract which can be offered as a sweetner (payment terms, notice period etc...) then consider changing those as a concession.

The worse they will say is no

[TykeMerc]

From the sounds of it you can put a fair business case together to support requesting a rate increase, it's worth asking if you go about it in a sensible way.

[kermitt]

No agent involved.

Invoice fortnightly.

Need to be here anyway to interact with other divisions during daytime i.e estimating, drawing office, account managers, manufacturing etc

Very close to home (part of the reason I took the gig).

Have previous experience as I was staff doing the same role here a couple of years ago before going away contracting elsewhere during the downturn.

No other contractors. Because it is a niche subject, getting busier and requires experience they are unable to find the right people.

He who dares Rodders...

[TykeMerc]

While as a contractor there's no such thing as a guaranteed gig (not that radically likely as a perm either these days) I'd say it's worth a punt in the situation you've described.