Contract rate negotiation?

[Boo]

the agent has quoted me £450/day for a post in an investment bank, which I think it's on the low side, but for securing an interview, I let him put me forward with this rate.

Good decision : the time to quote the actual rate is when the client has the hots for your skills and has decided nobody else will do.

My question is that, could I or should I talk about the rate during the interview or should it be strictly between my agent and myself?

Yep. Defo mention your required rate during the interview. That way the agent can't add a huge margin and talk you out of the role. If the client really like you and can afford your rate, but only just, then they will want to edge the agency out of the loop and go direct. Make sure you leave them a business card so they can contact you directly afterwards, I also take the opportunity an interview offers to hand round copies of a version of my CV which has previous client names and managers so they can easily take references if they want (they never do, but seem to appreciate the consideration).

Once the client likes me, can I re-negotiate with the agent? I think £500-550 is a fairer rate.

Of course, as I said above after interview is the ideal time to negotiate rate. After all you did not know that onsite working was required before interview, did you ? Or that the skills were significantly up-market from those mentioned beforehand ? Or that your experience in XXX really came to the fore in the interview and you can't be expected to accept the same rate as someone without it ? That kind of thing...

Hth,

Boo

[3starmn]

£450 per day seems a pretty decent rate to me especially considering it's your first contract. Besides I really wouldn't let yourself get distracted by rate negotiations at this stage, secure the interview and offer first then negotiate, you will be in a much better position. At this stage getting some contracting experience under your belt is the important thing.

[MarillionFan]

1st time out, take the money and get it under your belt.

If you find out later that you could have got an extra £100 per day(or the guys around you are on more), that's what negotiation is for.

[Hex]

If you've been put forward at £450 then the client will have seen this when they were sent your CV. IBs work by knowing exactly what the contractor gets paid and paying the agency a fixed margin. There is little point in your negotiating the rate after the interview I think. They'll just think you're messing them around.

A 1 hour journey for an interview for a £450/day contract seems a reasonable thing for you to fund yourself.

[Wanderer]

How many stages of interviews do they usually need? I am an hour train journey away from where they are, would they pay for the cost of the travel for the interviews?

It's a £450/day contract, you've had one phone interview and you've got a face to face one now. I reckon there is fairly good chance that you will get the job. Are you willing to invest the price of a train fare and half a day of your time in trying to win this business?

Get on your bike and find a job my son.

[eek]

How many stages of interviews do they usually need?

As many as the client wants until they either say no or give you the job?

I am an hour train journey away from where they are, would they pay for the cost of the travel for the interviews?

Expenses??? A contractor is self employed selling his/her expertise. If you can't afford to risk a £100 train fare (worst case scenario) for a £400 a day contract you really, really, really shouldn't be considering contracting.

[pmeswani]

How many stages of interviews do they usually need? I am an hour train journey away from where they are, would they pay for the cost of the travel for the interviews?

To answer your first question. I have no idea. To answer your second question. Probably not. If they don't offer, don't ask is my view. There may be certain circumstances where asking for costs to be covered, such as going overseas to an interview, however, I don't know if then you would get your interview costs covered.

[kevinlam]

How many stages of interviews do they usually need? I am an hour train journey away from where they are, would they pay for the cost of the travel for the interviews?

[stek]

Also being 'put forward' is no guarantee of an interview, even if you match perfectly.

[northernladuk]

Thanks very much for your advice. I will keep that in mind. I was just wondering whether I would have undersold myself, or even worse, the agent could have taken a big cut from the £600 contract.

How do you know it is a £600 contract?

[SueEllen]

Thanks very much for your advice. I will keep that in mind. I was just wondering whether I would have undersold myself, or even worse, the agent could have taken a big cut from the £600 contract.

When you have more than one contact under your belt then you can worry about that. At the moment you are a big risk.

[kevinlam]

Thanks very much for your advice. I will keep that in mind. I was just wondering whether I would have undersold myself, or even worse, the agent could have taken a big cut from the £600 contract.

[kaiser78]

Hi all,

I am planning to start contracting after 7 years working as a permanent Java developer. I am in the hunt for a contract with the help of agencies at the moment and the agent has quoted me £450/day for a post in an investment bank, which I think it's on the low side, but for securing an interview, I let him put me forward with this rate.

My question is that, could I or should I talk about the rate during the interview or should it be strictly between my agent and myself?

Once the client likes me, can I re-negotiate with the agent? I think £500-550 is a fairer rate.

Any help would be very much appreciated

Kevin

£450 would be a good rate for a first contract for your sort of role in IB. Don't even think about the rate during the interview let alone mention it - this is a golden rule when applying for any permie or contract role.

Secure the role, establish yourself for 6 months and only then think of asking for a rise. Remember you are likely to be up against others who have solid contracting experience, and so will have an immediate advantage over you from the start.

Good luck.

[northernladuk]

Why, if you have never contracted before, do you think £450 is a low? Is that just your opinion or have you spent time browsing the job sites for comparable prices? Are you aware of the current market situation etc?

Remember also you have no experience contracting yet and there will be plenty of other guys with many years experience under their belt. This makes you more risky than the other guys as they have proven experience seeing contracts through to the end.

Your contract is with the agent so your rate negotiation is also. I wouldn't mention it to the client.

[kevinlam]

Hi all,

I am planning to start contracting after 7 years working as a permanent Java developer. I am in the hunt for a contract with the help of agencies at the moment and the agent has quoted me £450/day for a post in an investment bank, which I think it's on the low side, but for securing an interview, I let him put me forward with this rate.

My question is that, could I or should I talk about the rate during the interview or should it be strictly between my agent and myself?

Once the client likes me, can I re-negotiate with the agent? I think £500-550 is a fairer rate.

Any help would be very much appreciated

Kevin


Just a quick 'further reading' note from Admin:

Contract rate negotiation: How to negotiate a rate rise
Negotiating for contractors: How to get the best IT contract rate