First contract renewal advice

**pmeswani** · 10 January 2012, 11:22

Originally posted by sharper1 View Post

Hi all,

Being new to the market I'm looking for a bit of advice from the more seasoned among you.

I just finished my first contract, it was a 3 month contract and I took a hit on my rate expectations primarily because it offered me skills I didn't have which I knew would add significant value to my CV. Wanting to get that first contract under my belt and on my CV was also a factor. The contract ended at the Christmas break so I have been back on the market since then. I have had some interest and even an interview for a contract which I decided wasn't for me.

However, the client from my previous contract has just been in touch saying they have another 3 months of work coming up, due to start at the end of the month, and I am their preferred choice. My dilemma is that ideally I am looking for a longer contract (6-9 months) at a rate much closer to the market rate for someone with my skills and experience.

The burgeoning hard-nosed contractor in me is saying I should say thanks but no thanks and hold out for a contract that meets my expectations. Alternatively I could try and negotiate a better rate though I don't think it is likely they will be able to come close to my expectations.

The more cautious part of me is saying I shouldn't turn down work and a contract extension would also add value to my CV.

Any thoughts?

The saying, if you don't ask you don't get. Negotiate a decent rate, if you can't get it, try and negotiate a favourable notice period, so if you want to leave and take on a longer contract, you will be able to.

Also the saying about a looking at a gift horse comes to mind. Unless you hated the previous client, what real reason do you have for not going back? So, you will be off the market for up to 3 months, well, the market could get better in a few months time and the perfect opportunity will come up.

Just a view point.

**SteelyDan** · 10 January 2012, 11:42

I'm thinking 'bird in the hand being worth 2 in the bush'...

**northernladuk** · 10 January 2012, 11:43

Originally posted by sharper1 View Post

I just finished my first contract, it was a 3 month contract and I took a hit on my rate expectations primarily because it offered me skills I didn't have which I knew would add significant value to my CV.

I am looking for a longer contract (6-9 months) at a rate much closer to the market rate for someone with my skills and experience.

3 months and 1 contract does not make you an experience and skilled contractor. You admit you take one contract to get skills. Maybe over selling yourself too soon here IMO.

The more cautious part of me is saying I shouldn't turn down work and a contract extension would also add value to my CV.

This. They you will be a slightly more skilled and experienced contractor and can start looking around.

If I do want to discuss and renegotiate terms, presumably this should be with the agent and not the client?

That is correct. The fact the client wants you back is a bonus but the agent will quite happily drop you and tell the client some BS if the price isn't right. Most definately ask for a rate rise though.

Being a contracter with just one three monther under his belt in January is most certainly not where I would want to be. 3 months will bring you up to April when budgets reset and the flood gates open. I think the path is clear for you young padawan.

**malvolio** · 10 January 2012, 11:50

Whle I could question whether three months represents marketable experience, you say you took a hit on rate to gain some skills. You now have those skills, presumably, so should be asking for what you believe is the market rate. If they want you back, clearly you can do the job. (Or, of course, you can manage to do the job but are cheap...) At the end of the day, market rate is what people are willing to pay, not what you think you are worth.

The other point is about working as a contractor. I do all my budgetting on working seven months a year. While it's nice to have long contracts (a) most clients work in three month chunks, (b) the whole point of having a contractor is to be able to drop them when they're not needed and (c) renewals are actually more valuable than one long gig. Think like a contractor, not a permie; longevity is not a given.

**TheFaQQer** · 10 January 2012, 12:15

Originally posted by sharper1 View Post

Any thoughts?

What makes you think that a six to nine month contract is going to last that long? Conversely, is there any potential scope for the initial three months to grow into something longer term?

The second contract is typically harder to get than the first - the first, you jump at the first decent opportunity, but the second you are much pickier. You are now looking for something that pays more than before, and for a longer period - that's only natural, but don't let it turn out that you hold out for something that doesn't exist. Taking a three month role now at under market rate still pays more than spending two months looking for something else and earning nothing in the meantime.

I don't know how far off market rate you (think) you are, or what the jobs market is like for someone with your skills and next to no contracting experience. A while back, I turned down an extension because I hated the work, the client and the location. I confidently expected to walk into something that summer, and lo and behold, a mere seven months later, I managed it.

If the skills you are picking up are good, and the rate is not abysmal, then I would be inclined to take the role. BUT - don't stop looking until you have a definite start date. Even then, don't stop looking. If you are not happy with the rate, then negotiate a decent notice period and keep looking.

**sharper1** · 10 January 2012, 12:34

Rate negotiations

Thanks all, great advice and certainly a reality check I probably needed to hear!

The place I was working at was fine and I enjoyed the work so I wouldn't have an issue working there again. With regard to rate and what I think I'm worth I'm certainly pragmatic and generally go in at a the lower end of the scale because I know I'm up against established contractors.

I'm certainly leaning towards taking it now and will try and negotiate a better rate. How much of an increase do you think it's realistic to expect and what is the best tact to take when negotiating?

**malvolio** · 10 January 2012, 12:43

Originally posted by sharper1 View Post

Thanks all, great advice and certainly a reality check I probably needed to hear!

The place I was working at was fine and I enjoyed the work so I wouldn't have an issue working there again. With regard to rate and what I think I'm worth I'm certainly pragmatic and generally go in at a the lower end of the scale because I know I'm up against established contractors.

I'm certainly leaning towards taking it now and will try and negotiate a better rate. How much of an increase do you think it's realistic to expect and what is the best tact to take when negotiating?

Jobserve or Jobstats will give you a pointer to market rate. Pitch your bid somewhere between that and what you were on, and then renegotiate at renewal...

**jmo21** · 10 January 2012, 14:34

Another consideration is that instead of looking for a role with just 1 3 monther on your CV, you will eventually be looking for a new role with a 6 monther (or more under your belt).

**TraceRacing** · 10 January 2012, 14:46

I'd think having been re-hired for an additional 3 monther sounds better than a six monther...

Sort of implies they found another need and immediatly thought of you...

First contract renewal advice