Reply to: What % Increase Is Typical on Contract Extension?

[Mordac]

As Rupe says, all that means is you were being ripped off for duration of the first contract. Which is hardly worthy of bragging.

[Ruprect]

I got a 25% increase at the first renewal stage about a year ago - negotiations directly with the client.

I started at the minimum offered by the agency (rate: x-y £/hr) and I asked for the top amount when the renewal came around. Seemed to be quite fair to me - the agency were touting the role for that much in the first place.

The mistake you made there was not going in at the top rate to start with If a role is advertised with a rate range I always go in at the top - as the client is obviously willing to pay it! Has worked so far...

[Hoff]

I got a 25% increase at the first renewal stage about a year ago - negotiations directly with the client.

I started at the minimum offered by the agency (rate: x-y £/hr) and I asked for the top amount when the renewal came around. Seemed to be quite fair to me - the agency were touting the role for that much in the first place.

[Flubster]

lose.

Whare have all the pedants gone, do I have to do this myself?

Where have all the pedants gone? Do I have to do this myself?

HTH

[expat]

If there is a risk to the agency that they might loose out ...

lose.

Whare have all the pedants gone, do I have to do this myself?

[expat]

Anything under 12 months, I'd say 0%.

Yes, try this analogy: last week your local taxi-driver took you home from the pub for a tenner. What increase do you think would be normal this week?

[bunting]

Cheers Lukemg,

Thought this was the best way forward, but never harms to get a second opinion.

Bunts

[lukemg]

yep, getting stung on an 11 month max - no return in less than 3 months trick in here. brilliant if you can guarantee the return.
Strangely, cons brought in before the rule are allowed to stay as long as required !!!
Defo ask for a rate rise on return, they want you, you have valuable local knowledge that means you will be up to speed v quick and comparable roles are already getting more - it's a no brainer.

[DaveB]

Bollocks does it. Only a proper B2B contract can do that. When will these idiots learn?

I did say they were clueless.

[Mordac]

Clueless clients sometimes have a rule in place that states no contractor can work for them for more than 51 weeks in any 12 month period. Supposedly protects them from claims for employment rights, holiday pay etc.

Bollocks does it. Only a proper B2B contract can do that. When will these idiots learn?

[DaveB]

Clueless clients sometimes have a rule in place that states no contractor can work for them for more than 51 weeks in any 12 month period. Supposedly protects them from claims for employment rights, holiday pay etc.

[Mordac]

51 week rule? Care to elaborate?

[bunting]

I need to resurrect this discussion.

I am at a client that wants me to come back in Jan after I have had 6 weeks out (they have 51 week rule). I want to increase my rate, although I'm fairly happy with what I've been getting, I know I'm worth more and some Contractors are on much more than me.
I've been with the same client since Jan this year, have particular product knowledge and even have a project that I can pick up when I come back. Also I have added quals (which I paid for) they requested over this year.
Sooo, since comparable Contractors are on between 10% - 50% more, am I reasonable to ask for 25%?? This year I've extended each time (3) without asking for a rate rise.

[lukemg]

I think it is too soon unless the following apply:
1. You know for certain agency is skimming a big percentage >25% off the top.
2. You are prepared to leave/hate the boss/have another job. In which case you ask for rise and walk if they say no. Did this on one contract after 6 months, boss didn't like contractors (you earn more than me), place was dull. Put in for a rise with agent, boss came over to me
Boss - 'sorry, no more budget available'
Me - I can understand that, fair enough.
Me to agency 30secs later - 'no rise, I walk, that's it'
Boss to me passing my desk seething - 'OK YOU'VE GOT YOUR RISE'
Me - 'much appreciated'
Point is, I was prepared to walk so didn't care, if that isn't the case I would take it (mention to the agent you will be expecting a rise at next renewal if one turns up)

[rootsnall]

As mentioned by Spacecadet I think you need a quiet word with the client to suss out what margin the agent is on and if there is possible extra money from the client available. I have found rate rises are always a struggle without playing hardball and after only 2 months that might be difficult but you won't get anything if you don't ask.