New to contracting help would be good :)

[dotnetter]

I'm starting my first contract Monday but i'm very nervous about the whole thing as i've never done it before.

Basically I had trouble finding a contract that would allow me to honour my notice period at my current job, I lowered my rate and and eventually got two contract offers. I have accepted a role for an exceptually low rate (£23ph) because it had more long term potential and it was a 15min drive away from my house. I'm happy to do this as I just want to get a feel for the market and it was a pay increase on my current perm job.

Now I'm not sure if the client is just paying low or im getting stitched up by the agent, the client isnt based in london and the role is an ASP.Net/SQL Server developer role. Now I have 6 years experience in software devlopement and Im finding theres loads of .Net roles about which are around the £35-£40ph mark.

The contract is on a month by month basis and they have indicated they want me to stay for around 6 months, should I ask the agent to lower his commision rate when my contract is up for renewal, any tips on finding out if he's stitching me up?


Any help appreciated thanks.

[The Lone Gunman]

Dont think of it as the agent ripping you off.
Think of it as a loss leader to get you in.

I suspect your agnet is charging you out at the normal rate so make a point of emailing both the agent and the client at your earliest opportunity thanking them for accepting you as a new and untried contractor and hope that the reduced rate offered will be noted when you have proven your ability and wish to renegotiate. You have been more than generous as this is effectively a one month contract.

If you dont like it then call their bluff and walk.

[DaveB]

You took the contract knowing what the rate was so you've only yourself to blame if you are now unhappy with it.

Work the contract, get the experience under your belt and know better for next time. At least you wont have to work more than a months notice for your next one.

[dotnetter]

You took the contract knowing what the rate was so you've only yourself to blame if you are now unhappy with it.

Work the contract, get the experience under your belt and know better for next time. At least you wont have to work more than a months notice for your next one.

Thanks fo rthe replies people.

Don't get me wrong I'm not complaining about the rate, I'm more than happy just to get some experienece and better pay under my belt. I just wanted some help on what to do if the want to renew my contract. They offered me a much lower rate than that to start with but I managed to up the rate a little bit.

[DaveB]

In that case it's simple. Keep looking for other contracts, when you get one use it as a barganing chip at renewal, assuming you want to stay where you are. If that fails, then walk.

[BlasterBates]

The fact that you went in at such a low rate maybe the reason you got it, and it is close to home, you'll be saving 25 quid a night B&B and 50 quid a week in petrol; once you up the rate you have to compete more. So use this as a springboard.

[dotnetter]

The fact that you went in at such a low rate maybe the reason you got it, and it is close to home, you'll be saving 25 quid a night B&B and 50 quid a week in petrol; once you up the rate you have to compete more. So use this as a springboard.

Yeah thats kinda what i plan to do.

I was told by an agent the other day to not go for such a low rate as it looks like your not worth your salt. Is this a good tactic assuming you know your worth the market rate?

[thunderlizard]

As to finding out the agent's rate, assuming you've already tried the obvious (ask the client), try hanging round whoever deals with your invoices, or chatting up the purchasing department. But it's easy to get too hung up about the agent's percentage. Better to just focus on charging the price you want. Anyway, for your first few contracts the agent will probably have better negotiating skills, and will be worth their %.

The Gunman's right. Don't worry too much about having been stitched up on your first contract. Think of it as buying your way into the game. And a first-time contractor probably isn't worth as much as somebody with a few projects under their belt. You'll come round to this point of view in a couple of years. If there's as much long-term potential in this client as you think, there'll be ample opportunity to sell them a project at market rates later on.
Also ask yourself: if these £40/hr contracts were so easy to come by, how come you didn't get one in the first place?

[dotnetter]

As to finding out the agent's rate, assuming you've already tried the obvious (ask the client), try hanging round whoever deals with your invoices, or chatting up the purchasing department. But it's easy to get too hung up about the agent's percentage. Better to just focus on charging the price you want. Anyway, for your first few contracts the agent will probably have better negotiating skills, and will be worth their %.

The Gunman's right. Don't worry too much about having been stitched up on your first contract. Think of it as buying your way into the game. And a first-time contractor probably isn't worth as much as somebody with a few projects under their belt. You'll come round to this point of view in a couple of years. If there's as much long-term potential in this client as you think, there'll be ample opportunity to sell them a project at market rates later on.
Also ask yourself: if these £40/hr contracts were so easy to come by, how come you didn't get one in the first place?

yeah good advice cheers for that, and true £40 and hour contract dont seem to be easy to come by lol

[madhippy]

I'm looking for my first contract .. plenty of interest from agents .. nowt from clients for interviews ... going for £40hr too ... might have to lower that then I guess ... course the company I work for hire me out at up to twice that rate now ...