Reply to: Negotiate rate in the middle of the contract

[gables]

20 years ago it was 10%-30% each extension.

<sigh>

They were the days, or was it daze

I'm sure one of my colleagues has just done this so it's not out of the question. Depends on how you approach it and the reasons.
To be fair however, you should consider everything up front. Ie, if the rate isn't enough for the duration of the contract then negotiate higher beforehand. It's a bit unfair to suddenly ask for more money during a contract and unprofessional. It's a bit like you having plumbing work done. You pick the cheapest of three quotes and they suddenly ask for more money before the job is done that makes them less competitively priced, ie if you had known up front you might have given the job to the next company.

It's not out of the question, I doubled my rate (it was lowish to start with) when I was extended after a year for a further 11 months. But it wasn't just for the same role, I could tell at the interview and subsequently early on in the contract that there was scope to deliver more so I took a punt. Basically, I was taken on for what was a subset of my skills\experience, I bided my time but also demonstrated there was more work than initially scoped. So at the year end I proposed a wider scoping role making use of my wider skills, proposed a new rate, they went for it - happy days.

But nowadays, quite rightly, you won't get a rate rise at extension time by default unless you're very niche I'd say. The market is over supplied at the moment in a lot of areas.

[Agent]

Love the long term lower rate option, I'm everyones a winner.

[perplexed]

Sounds like the OP was reeled in with the line 'it's a long term contract so the rate is lower than you want.'

I prefer the more accurate "you'll be paid less for longer"...

[washed up contractor]

Sounds like the OP was reeled in with the line 'it's a long term contract so the rate is lower than you want.'

[SuperZ]

I'm sure one of my colleagues has just done this so it's not out of the question. Depends on how you approach it and the reasons.
To be fair however, you should consider everything up front. Ie, if the rate isn't enough for the duration of the contract then negotiate higher beforehand. It's a bit unfair to suddenly ask for more money during a contract and unprofessional. It's a bit like you having plumbing work done. You pick the cheapest of three quotes and they suddenly ask for more money before the job is done that makes them less competitively priced, ie if you had known up front you might have given the job to the next company.

[stek]

20 years ago it was 10%-30% each extension.

<sigh>

Without even asking!!

[BrilloPad]

Mid-contract = not a chance in hell.
End of first extension = bob hope and no hope
Chance of agency cutting margin = slim
Chance of client increasing = slim

I've found that clients think the rate is good for the next 99 years. Same with agents - they've got their margin and they won't let it go.

20 years ago it was 10%-30% each extension.

<sigh>

[northernladuk]

FTFY

Yep. Mustn't forget the Newbie tax.

[kaiser78]

I am new to contracting and I am in the process of an interview for a contract that is for 1 year.
However the rate that the company is willing to pay is slightly lower than my rate. If the contract was for 6 months I wouldn't have any problem because I could negotiate an increase in the renewal (considering there was one). But now that it is for 1 year is it possible to negotiate a rate increase in the middle of the contract?

As you are new to contracting and your rate is only slightly lower than you expect, take it to build up your contracting experience.
Otherwise as per other posters comments.

[FrontEnder]

But flipping that around, if you have not even reached the stage of being offered the contract, so you haven't even started discussing contract rates with the agent, then you've either applied for a job that you know pays too little (but you need the work), or the agent knows the market and knows how big a margin he can take form you.

FTFY

[WTFH]

If you are only at the interview stage, then you can negotiate your rate should you get to the point of being offered a contract.

If you're new to contracting you might find the rate you think you are worth is not the rate everyone else thinks your worth. Apart from level of experience - and I don't mean qualifications, but actual work, there's also the number of people applying for the role, their level of experience and their (and your) ability to present themselves as knowledgeable and capable of delivering.

If you're really new to contracting, here's a tip about advertised rates:
Say a job is advertised at £350-450 per day by an agent. An experienced contractor (10 years plus) would probably get offered £420-£440. One with less than that might be £380-400, less than 2 years and you'll be looking at £300-320. (These are made up figures, but are to give you a feel for it). So if the job is £350-450 and you decide that with very little experience that you should get at least £450, then you're in for a shock when you get offered £300.

But flipping that around, if you have not even reached the stage of being offered the contract, so you haven't even started discussing contract rates with the agent, then you've either applied for a job that you know pays too little (but you need the work), or the agent knows the market and knows what you're worth.

[psychocandy]

Mid-contract = not a chance in hell.
End of first extension = bob hope and no hope
Chance of agency cutting margin = slim
Chance of client increasing = slim

I've found that clients think the rate is good for the next 99 years. Same with agents - they've got their margin and they won't let it go.

[BrilloPad]

You can tell them if there is no increase then you will terminate the contract.

It will give them a good laugh.

[malvolio]

WHS. As I've said before several times, changing the rate during a contract, other than by re-negotiating the agency percentage (and good luck with that), is totally dependent on you adding more value to the work. They are already paying you to do the best job you can, so unless you're adding something extra there is no reason to give you more money.

Contracting is not like permie, you don't get paid more simply for doing the time, you have to sell the client why the raise is justified. "Because I'm worth more" is not it, sadly...

[northernladuk]

When you say the rate is slightly lower than my rate. You mean the rate that you would like? You said you are new to contracting so how do you know what rate you are worth? Rates can vary wildly from gig to gig depending where you are, who the client is. Sometimes you take a lower rate to keep the money coming in and look forward to better gigs in the future.

How low are we talking here?

I'd say there is slim to no chance of mid contract rate negotiation so certainly wouldn't be banking on that.

You could try neogtiating a 6 month gig but if they bin you you could have done yourself out of some good money.

Also a rate rise certainly isn't guaranteed after the 6 months either. Why would they pay you more for doing the same thing?