Extension or a new contract dilemma

[rd409]

New offer with more money.

[SneakySimon]

Intrigued

And you decided????

[rd409]

Thanks Anubis/SS.

Actually my case is kind of reverse. The existing client is a small organisation, and the new offer is from a FTSE 30. I am sure the rate on offer is standard market rate. It was just me being naive to panic due to looking bench, that I accepted the existing role at such a low rate. The existing client is also paying near to market rate, but the agency cut is 26% as I said earlier, making the rate difference too much. I have asked the agent for the final time, what rate he is going to offer, and make my decision on monday.

But honestly, I guess I have already made up my mind.

[Anubis]

Be careful - the grass isn't always greener.

Why is someone prepared to offer you a lot more for essentially the same role? More hours? Others don't want it? It's super urgent? Dig deep into the details.

It's always safe to set yourself a rate you think you're worth based on the current climate and if the client meets that then don't worry about other roles (there will always be others; you live a long time).

I got offered £100 more day on a "fantastic and urgent" role once; after some digging I found out it was working for a nut house in a very undesirable area. Hmm...nut house & more cash or FTSE 100 on good market rate. It was a no brainer for me - FTSE 100 & market.

I don't agree about always chasing the cash; it should be at the top of a contractors priorities but greed isn't always good. Life is about being happy...

[SneakySimon]

Dilema

I have had exactly the same dilema - chose to stay at current company - devil you know and all that. The rate increase would have been great but current rate acceptable and people alright.

[Scrag Meister]

As is always the way, better the devil you know?

Current, Its shorter, and less cash, but you know the people

Offer, Its longer and more cash, but could be dire cos you don't know the team and manager etc....


Personally I'd go new offer for more cash, change is good sometimes.

If you manage to get the rate hike at current clientco then stay there if you are happy with the work.

[Not So Wise]

He said it is not professional to ask for hike after just 3 months, which I think is tulip.

Correct, first 3 month extension is exactly the time to ask for hike, you have just proven yourself good enough to get the extension and agency will have made back their initial costs for placement (+ more at those margins)

I read somewhere on this forum, that having multiple extensions looks good to prospective clients. Is that true?

Yes it is, but a few contracts with no extensions does not necessarily look bad. Not every contract has capacity for extension (nor is every contract 3 months, some are 1 month, some are a year...and everything in between so how do they know you actually got extended?)

Otherwise as said, always keep your options open as long as possible until you have to make a decision and whatever decision you make...make sure it is for one that is in the bag, not up some agents tree

[russell]

There's an offer. The gig is trying to get in the bag, I am not sure, if I should open the bag or not

OK then ask for a rate increase on current one to match the new gig, if they say no then go to new gig and collect £XXX.

[rd409]

The new gig, is it in the bag? until you get an offer it's not an option. A bird in the hand and all that. 25% is quite a high cut, so I'm sure you could get them down to 10%. Once you have the other contract on offer then you can be more bold about your requests.

There's an offer. The gig is trying to get in the bag, I am not sure, if I should open the bag or not

[russell]

I have been working on an exciting 3 monther since April due to be finished end of this month. I have now been offered an extension for another 3 months. Looking at the amount of work, it is likely to extend well beyond that period. The agency commission on this one is about 25%. I have tried to initially negotiate a rate hike while discussing the extension possibility which the agent flately refused. He said it is not professional to ask for hike after just 3 months, which I think is tulip. I think I am going to try for an increase once again.

Now while this was being discussed, another agent came up with a brilliant new gig, which is 30% increase on daily rate. Now having an offer on table from two different agencies, I am trying to decide what is good for me. I read somewhere on this forum, that having multiple extensions looks good to prospective clients. Is that true?

The best case scenario for the extension would be to get the agent to half his commission, as I know there is no budget for hike at the client site, and they are already stretching a bit out of the standard market rate.

So there is an extension of the current gig at 15% hike for next 3 months; and on the other hand there is a new gig at 30% hike for next 6 months. All in all I think getting the new one is the best way forward, but then I just wanted to have an opinion from fellow contractors about the extension thingy. Is it a reality or just a myth?

The new gig, is it in the bag? until you get an offer it's not an option. A bird in the hand and all that. 25% is quite a high cut, so I'm sure you could get them down to 10%. Once you have the other contract on offer then you can be more bold about your requests.

[Sockpuppet]

Go for the 30% role. Always chase the cash.

[rd409]

I have been working on an exciting 3 monther since April due to be finished end of this month. I have now been offered an extension for another 3 months. Looking at the amount of work, it is likely to extend well beyond that period. The agency commission on this one is about 25%. I have tried to initially negotiate a rate hike while discussing the extension possibility which the agent flately refused. He said it is not professional to ask for hike after just 3 months, which I think is tulip. I think I am going to try for an increase once again.

Now while this was being discussed, another agent came up with a brilliant new gig, which is 30% increase on daily rate. Now having an offer on table from two different agencies, I am trying to decide what is good for me. I read somewhere on this forum, that having multiple extensions looks good to prospective clients. Is that true?

The best case scenario for the extension would be to get the agent to half his commission, as I know there is no budget for hike at the client site, and they are already stretching a bit out of the standard market rate.

So there is an extension of the current gig at 15% hike for next 3 months; and on the other hand there is a new gig at 30% hike for next 6 months. All in all I think getting the new one is the best way forward, but then I just wanted to have an opinion from fellow contractors about the extension thingy. Is it a reality or just a myth?