Contract Extension and 'Rate Increase'

**NotAllThere** · 20 July 2012, 11:03

Agent is playing silly beggars. If you've got a good relationship with the client, then talk to them. You may find that the client is paying exactly what they agreed, and the agent merely increased his cut. Now he doesn't want the client to find out what he's done.

**MyUserName** · 20 July 2012, 11:05

WNATS

Did you mean to call the client contact your 'line manager'? That is a term more used by permies than contractors.

**NotAllThere** · 20 July 2012, 11:08

Nah - I use line manager as well. The person who's responsible for the department in which I work. It's a handy term, not necessarily indicating that he tells me what to do. Except this morning when he told me to get another coffee as I looked a little

**NorthernApe** · 20 July 2012, 11:09

Originally posted by NotAllThere View Post

Agent is playing silly beggars. If you've got a good relationship with the client, then talk to them. You may find that the client is paying exactly what they agreed, and the agent merely increased his cut. Now he doesn't want the client to find out what he's done.

Its definitely not the agent. I have had the conversation with the client AND the agent about this. I even even suggested that the agent to make up the shortfall in the rate from his percentage! 'And some fell on stony ground...'

**NorthernApe** · 20 July 2012, 11:10

Originally posted by MyUserName View Post

WNATS

Did you mean to call the client contact your 'line manager'? That is a term more used by permies than contractors.

It's just semantics, and a phrase that most people recognise.

**BolshieBastard** · 20 July 2012, 11:24

Originally posted by NorthernApe View Post

I have read a few posts on here regarding going for a rate increase on an extension, but I haven't seen a scenario posted like mine...

I took a call from an agent regarding a contract role at a major financial institution. After a discussion on the role requirements and experience needed, he sent me through a role profile and the day rate on offer. Comparing the role profile to the rate, I was satisfied it was a good match and I was put forward for consideration.

I got an interview for the contract which went well, and just before the meeting conclusion, the interviewer (now my line manager) asked me what my previous rate was (I had worked for the same company a few times in the past). I told him that I don't normally discuss rates with the client but he told me the discussion was to agree the rate so I wouldn't go back to the agent and ask for a higher rate! I was happy with the explanation and told him my previous rate. His response was that he couldn't match the rate, and was I happy with the rate offered. I told him I was - otherwise I wouldn't be at the interview - and we all parted happy.

Agent calls. I've landed the contract but I was asked if I would 'be flexible on rate'. I said no as we had all agreed the rate before, and during the interview. My response was passed on to the manager who basically said it was a take-it-or-leave-it offer. After being on the bench for a period, I reluctantly agreed to the rate decrease.

Fast forward three months - it is now time for the contract extension discussions. The agent got feedback from the client on me. He was told the client was happy with the work I am producing and wants to extend. Unfortunately, the agent also forewarned the client that I may be asking for a rate increase! My intention was (is!) to talk to the client regarding future work requirements, and to find out why the rate was arbitrarily decreased between interview and offer, as I have never been given a reason. Based on this I would either have made a decision to accept the extension and request the rate be returned to the original offer, or decide not to extend the contract and take up a seat on the bench. Trouble is that the agent has sort of 'pre-played' my hand.

The market for my particular skillset has picked up a lot since accepting this contract and the war chest has been topped up should I have another extended period out of contract. I am not too worried about finding more work should I decide to leave.

Thoughts?

So to sum up,

you have previously worked for the same client at a higher rate,
the new role was a lower rate but client, agent and yourself were all 'happy' with the rate for the new contract
at offer, the client reduced the pre interview rate below that agreed

I can understand you wanting the job because you've been benched but, this just sounds like a classic case of client and or agent screwing you down because they knew you may be desparate for work.

Did you ask why the client wanted to reduce the agreed pre interview rate? I think you should have played hardball a little more and stood your ground. In any event, asking why they reduced their offer at renewal smacks of locking the stable door after the horse has bolted!

Between them, the client and agent have reduced your rate and appear to have headed off any attempt for you to negotiate an increase at renewal.

My strategy is normally to only accept a rate Im happy with for 12 months. Unless your role changes significantly during a contract (which sometimes happen), I dont hold with this asking for a 'rise' at 3 monthly renewals but, that's just my opinion.

**SimonMac** · 20 July 2012, 11:30

I am unsure how wise it would be talking to the client about rates, even if they asked during the initial interview, your contract is with the agent not the client so discussions would go through them, if they are playing silly buggers and are prepared to walk then walk.

**NorthernApe** · 20 July 2012, 11:47

Originally posted by BolshieBastard View Post

So to sum up,

you have previously worked for the same client at a higher rate,
the new role was a lower rate but client, agent and yourself were all 'happy' with the rate for the new contract
at offer, the client reduced the pre interview rate below that agreed

I can understand you wanting the job because you've been benched but, this just sounds like a classic case of client and or agent screwing you down because they knew you may be desparate for work.

Did you ask why the client wanted to reduce the agreed pre interview rate? I think you should have played hardball a little more and stood your ground. In any event, asking why they reduced their offer at renewal smacks of locking the stable door after the horse has bolted!

I did, and didn't get an answer that was acceptable to me.

Originally posted by BolshieBastard View Post

Between them, the client and agent have reduced your rate and appear to have headed off any attempt for you to negotiate an increase at renewal.

This does appear to be the case...

Originally posted by BolshieBastard View Post

My strategy is normally to only accept a rate Im happy with for 12 months. Unless your role changes significantly during a contract (which sometimes happen), I dont hold with this asking for a 'rise' at 3 monthly renewals but, that's just my opinion.

Normally, I never ask for a rate increase (although I have been offered a few in my contractor career) for exactly that reason. If you are happy with the rate at the start of a contract, then you should be happy at the end with the same rate. I was happy with the pre-interview offered rate, but not the actual rate.

I should have shown my displeasure and refused the contract TBH. It just proves that I am still learning after 20+ years in the contracting game!

**NorthernApe** · 20 July 2012, 11:51

Originally posted by SimonMac View Post

I am unsure how wise it would be talking to the client about rates, even if they asked during the initial interview, your contract is with the agent not the client so discussions would go through them, if they are playing silly buggers and are prepared to walk then walk.

It's very unwise, and I wouldn't normally do it but I accepted the explanation offered.

I hardly expected for the client to display the very behaviour that he was concerned about (in reverse of course - not me going back to the agent demanding higher rates, but him going to the agent offering a lower rate!).

Contract Extension and 'Rate Increase'