Negotiating rate rise mid-contract

[Gentile]

Before folks lunge at me saying that there is another thread on this topic, let me clarify that my situation is a bit different.

Started a six month gig last year. Then gig got renewed for another six months with 5% of the rate shaved off (as was happening at many other places in the market). Now I am midway through the gig. Meanwhile, I have an offer from another client who is offering me 10% more than the rate during my first six months at my current client (that is about 15% higher then what I get now). So how should I deal with the situation? My specific question is:

If I try to renegotiate rate to match what I am now being offered, I would obviously have to stress that I have an open offer from elsewhere. Is this the right approach or is it considered unprofessional to have looked elsewhere while still not at the fag end of my gig?

Should I be discussion this first with my client or with my agency?

I have a feeling it wont be a popular opinion, but personally I wouldn't have problem with accepting the higher rate in this specific situation, all other things being equal. You'll probably find that your present client will offer to match the higher rate you've demonstrated you're worth, rather than lose you; it makes plain good business sense to do so. Do you think for one minute if the client's budget fell through for some reason, or their internal priorities changed and they no longer had a need for your services, they'd get all sentimental about it and keep you on anyway for what remains of your contract for old times' sake? Or do you think it's rather more likely that they'd use the no-MOO clause in your contract to conclude your relationship early, or to pressure you into reducing your rate even further? The same thing cuts both ways: you've no obligation to stay if your services are in greater demand elsewhere and you've already taken a cut from the rate you originally agreed. I'd feel differently about it if your existing client hadn't knocked down your rate once already. They have, though, so they can't really complain if their lack of continuing investment causes them to lose an in-demand supplier to another client with a more appropriate budget.

I've never had to argue the toss with a client about my day rate mid-project (mainly because I only do contracts with a fixed scope and therefore a fairly predictable duration, and I don't have time to look for more work whilst I'm fulfilling a given contract). However I have, as I'm sure many of you have too, been in the situation of a client or agency lowballing just before the contract is set to start, and trying to knock the rate we'd originally discussed down. My response has always been "I'm sorry that what I have to offer doesn't fall within your allotted budget at this time, I wish you every success in sourcing a contractor more suited to your needs". For me, this situation falls into that same category of things having changed so my availability being withdrawn. It'd have been preferable if you'd turned down the lower rate at the time of renegotiation, but really from the point you accepted to work on at a lower rate they should have known they were risking losing you since there's no MOO between you. So, it's not like you're just profiteering for the sake of it. If you start getting a lower rate than you originally agreed, you are obviously going to look around. On this occasion, it's cost the client; that's the risk they took when they set out to renegotiate terms with you.

[Scrag Meister]

Personally I don't agree with rate negotiations mid contract. It just doesn't sit right with me. You made an agreement with the client and started work, I don't think holding him to ransom mid contract benefits anyone. Yes I agree clients try to do it to you mid contract but I also believe if commit hard enough you can avoid the cut. They impose it but you still have an option. Also these cuts are imposed across the board and generally are driven by finacial issues within the client. A contractor wanting a rise is basd on nothing but himself. They are different reasons... but anyway, very arguable so won't go in to that .. back to the issue...

You made an agreement and it would be professional to stick to it. It sounds like, in the current climate, the client has been more fair than most. It was only 5% and it was at renewal. They had a new piece of work but it was at a different rate to before, the market has changed. He negotiated a 5% difference in price and implemented at the time he could renegotiate. It isn't technically a cut, its just lower for this piece of work. You demanding a rate increase mid contract would make you the one acting unprofessionaly in my honest opinion.

All that said and done I don't think the money you are talking about is enough to cause a storm. You are with a client that has treated you fairly, could have been 10% there and then. There is work for you to do there and it appears you have a good relationship. Jumping ship gives you 5% more than you were happy with for 6 months of unknown, possible termination, awful contract, no extension.

Stay in the role, swallow it, act professionally and at next renewal prove you are worth your old rate and renegotiate or walk. For the record I was at Barclays during the first 10% take it or walk round. I stayed, tried for my old rate it didn't appear so I left on good terms. They have asked me back since, haven't acceptet but when I do it will be worth more than the 10% in the long run.

WNLUKS

[kingcook]

Started a six month gig last year. Then gig got renewed for another six months with 5% of the rate shaved off (as was happening at many other places in the market). Now I am midway through the gig. Meanwhile, I have an offer from another client who is offering me 10% more than the rate during my first six months at my current client (that is about 15% higher then what I get now). So how should I deal with the situation?

Carry on until the end of the contract, IMO. You agreed at time of renewal to take a 5% cut. Live with it.

If you really do want to burn bridges (with both client and agent) just give notice and say "happy to sign another contract with 15% increase in rate". Don't expect a pleasant response!

[northernladuk]

Clients are not only too happy but too quick to make rate cuts mid contract. So, what's good for the goose and bollox to all that pretenious professional nonsense!
.

Again while I tend to agree in this case is specifically says he imposed it an renewal. Got to give the client some credit for that at least.

[northernladuk]

Personally I don't agree with rate negotiations mid contract. It just doesn't sit right with me. You made an agreement with the client and started work, I don't think holding him to ransom mid contract benefits anyone. Yes I agree clients try to do it to you mid contract but I also believe if commit hard enough you can avoid the cut. They impose it but you still have an option. Also these cuts are imposed across the board and generally are driven by finacial issues within the client. A contractor wanting a rise is basd on nothing but himself. They are different reasons... but anyway, very arguable so won't go in to that .. back to the issue...

You made an agreement and it would be professional to stick to it. It sounds like, in the current climate, the client has been more fair than most. It was only 5% and it was at renewal. They had a new piece of work but it was at a different rate to before, the market has changed. He negotiated a 5% difference in price and implemented at the time he could renegotiate. It isn't technically a cut, its just lower for this piece of work. You demanding a rate increase mid contract would make you the one acting unprofessionaly in my honest opinion.

All that said and done I don't think the money you are talking about is enough to cause a storm. You are with a client that has treated you fairly, could have been 10% there and then. There is work for you to do there and it appears you have a good relationship. Jumping ship gives you 5% more than you were happy with for 6 months of unknown, possible termination, awful contract, no extension.

Stay in the role, swallow it, act professionally and at next renewal prove you are worth your old rate and renegotiate or walk. For the record I was at Barclays during the first 10% take it or walk round. I stayed, tried for my old rate it didn't appear so I left on good terms. They have asked me back since, haven't acceptet but when I do it will be worth more than the 10% in the long run.

[FitThinking]

Bridge burner..

15% is very little in the bigger scheme of things. Whilst I agree with the sentiment of "get what you can as the clients are only going do the same", there's a good chance that you might want to go back there.

If your bluff's called then there's a high chance of getting a rate cut of 100% next time you could have worked there.

My advice is to be open and clear. Say up front that you'll stick with the contract despite their previous behaviour but that you don't intend to renew as the market has moved, fluffed out with 'shame' and other platitudes.

You're keeping the moral high ground, giving them the chance to look for more budget before renewal, and keeping the relationship positive.

Good luck

[BolshieBastard]

Before folks lunge at me saying that there is another thread on this topic, let me clarify that my situation is a bit different.

Started a six month gig last year. Then gig got renewed for another six months with 5% of the rate shaved off (as was happening at many other places in the market). Now I am midway through the gig. Meanwhile, I have an offer from another client who is offering me 10% more than the rate during my first six months at my current client (that is about 15% higher then what I get now). So how should I deal with the situation? My specific question is:

If I try to renegotiate rate to match what I am now being offered, I would obviously have to stress that I have an open offer from elsewhere. Is this the right approach or is it considered unprofessional to have looked elsewhere while still not at the fag end of my gig?

Should I be discussion this first with my client or with my agency?

Clients are not only too happy but too quick to make rate cuts mid contract. So, what's good for the goose and bollox to all that pretenious professional nonsense!

But, you are going to have to be in a very strong position to get anything from this. By that, I mean you have an offer from the other client ready and willing to go and, you are prepared to walk from your current contract (and perhaps not be taken back there again for some time).

Even then, the current agent and \ or client could just front you and call your bluff.

Up to you whether you put yourself through the hassle for 15% extra though.

You'd need to discuss with your agent first and if they play hard, let the client know you have a better offer on the table and will take this if there is no movement from agent or client.

[titan]

Before folks lunge at me saying that there is another thread on this topic, let me clarify that my situation is a bit different.

Started a six month gig last year. Then gig got renewed for another six months with 5% of the rate shaved off (as was happening at many other places in the market). Now I am midway through the gig. Meanwhile, I have an offer from another client who is offering me 10% more than the rate during my first six months at my current client (that is about 15% higher then what I get now). So how should I deal with the situation? My specific question is:

If I try to renegotiate rate to match what I am now being offered, I would obviously have to stress that I have an open offer from elsewhere. Is this the right approach or is it considered unprofessional to have looked elsewhere while still not at the fag end of my gig?

Should I be discussion this first with my client or with my agency?