Rate increase - how do I achieve it?

[heyya99]

My year long Java development contract ends at the end of April. I have been told a 6 month extension is on the cards. My client is with a consultancy that has placed me one of their client sites (direct, no agent).

A colleague got an extension but his rate increase request was turned down (they claimed that my colleague was already on market rates).

I would like to know how to go about getting a rate rise. Are rises normal with extensions? I would like the extension and would be happy to take it at the same rate but would obviously like more.

So, how to I play it when I get the inevitable rate increase refusal. I know the my client is desperate to keep me because basically they are body-shopping me to the end client.

My issue with the end client is that the tech is very poor (1997 standard but there's been talk of newer tech coming in) and I have already let me feelings regarding not learning much known to my client. So they know I could take or leave the place.

How do I go about it and is a rate increase likely?

I've read this but would like contractor opinion.
http://www.contractoruk.com/agencies...rate_rise.html

[stek]

How good are you at Poker?

[northernladuk]

Firstly...

Are rises normal with extensions?

No. Absolutely not. Why would they be.

Saying that there is an argument for pushing the agents comission down if there is one as he has no work to do and would rather keep you on less than you walking. Same could be said for a consultancy as they are a middle man so his margin couple possibly squeezed in some situations. You would have to be prepared to walk and in 99.999% of the time people aren't so they just say no and carry on as normal. A bit of bluff and bluster from the contractor won't work, they deal with this day in day out so a bulltulipting contractor won't phase them. All this has more chance of working if you are being screwed by the agency/consultancy but if they aren't then it's going to be hard to pull off.

The only time a rate rise should be norm is if the contractor is delivering more and earning the consultancy more money which again, in most cases they aren't so there is no extra value delivered so why should the rate go up?

What have you done that earns the consultancy more in either reputation or hard cash and push that case. If you are just looking at a cheeky rise cause you think you are due one and no other reason than that then it is just a battle of the cojones. Stick what you want in and threaten to walk. If you have no intention of walking then don't waste anyone's time.

Question for you though... Are you on market rates? If you are then surely an 18 monther is worth it's weight without pushing it?

[MyUserName]

Will you walk if the agency says 'no'?

If not then they will sniff that a mile away and will just stone wall you.

Although a better question is why should they raise your rate?

[Kanye]

Will you walk if the agency says 'no'?

Over 5 years as a contractor I've probably secured 10 extensions and rate rises on maybe 7 of those and most client changes apart from one.

It's aggressive but I'm on a pretty monster rate now with another extension in the bag taking me through to the end of the year.

Though I'm pretty good () I've only got them by being 100% willing to walk every time and making that clear, citing the market conditions or getting other offers on the table.

Most consultancies are making such a high markup that they will always give away that extra £50-£100 a day to keep up continuity. It's especially the case if they are not that established with the end client, perhaps only having 1 or 2 people in there.

So I would push for the rate rise if you are confident.

[tarbera]

My client is with a consultancy that has placed me one of their client sites (direct

My year long Java development contract ends at the end of April. I have been told a 6 month extension is on the cards. My client is with a consultancy that has placed me one of their client sites (direct, no agent).

A colleague got an extension but his rate increase request was turned down (they claimed that my colleague was already on market rates).

I would like to know how to go about getting a rate rise. Are rises normal with extensions? I would like the extension and would be happy to take it at the same rate but would obviously like more.

So, how to I play it when I get the inevitable rate increase refusal. I know the my client is desperate to keep me because basically they are body-shopping me to the end client.

My issue with the end client is that the tech is very poor (1997 standard but there's been talk of newer tech coming in) and I have already let me feelings regarding not learning much known to my client. So they know I could take or leave the place.

How do I go about it and is a rate increase likely?

I've read this but would like contractor opinion.
Contract rate negotiation: How to negotiate a rate rise for IT contractors :: Contractor UK

your probably being charged at around £1000/£1200 a day by consultancy to end client, and I assume your on about £500, so you have lots of wiggle room. Just say you want your rate + £150 day and keep saying no thanks until your new rate comes round.

[GazCol]

your probably being charged at around £1000/£1200 a day by consultancy to end client, and I assume your on about £500, so you have lots of wiggle room. Just say you want your rate + £150 day and keep saying no thanks until your new rate comes round.

Is there really that much of a mark-up by a consultancy as opposed to an agency? In my experience, I'd say not.

[Kanye]

Is there really that much of a mark-up by a consultancy as opposed to an agency? In my experience, I'd say not.

In my London experience it is not far from the mark. £800-£1200+ for an established consultancy.

Agents of course are on a much lower percentage markup.

[rurffy]

I remember some time ago when I posted bout rate increase. And people said same as above.


In the end , before actually requesting for rate increase I had about 4 interviews on the card and I was prepared to walk.(I knew I had good skills and I wouldn’t surfer before getting boomed again) .

I told the agent that I have loads of interviews on ground for the £XXX rate I need – so I would love clarification if he could beat that rate. I don’t think you should threaten to walk, but make them know you have interviews.



In all they might say no – so be either prepared for a (NO) , a( Yes )or a (NO but we could give you £XX )

[SpontaneousOrder]

Is there really that much of a mark-up by a consultancy as opposed to an agency? In my experience, I'd say not.

Generally, yes. Unless the client is an important one where there might be a deal done. I did work for o2 as a permie at a consultancy and there was a flat day rate for everyone (junior/senior/contract devs) of £600. Normally it would be a lot higher but o2 gave us a lot of work.