Coming to end of first 6 months contract

[TheFaQQer]

No, I totally understand who's paying me, however, I am posting in the Welcome / FAQs forum hence needing advice on the process!

I have a good relationship with the client and I've had some very positive feedback from many people within the organisation too so I believed I'm valued. So much so that they want to have discussions with me about going perm. I believe I could have a discreet conversation with them.

I took a low rate as it was my first contract and wanted to get my feet under the contracting table.

Appreciate all the advice. I'll look through my contract and take all of it on board.

If they see you as perm, how confident are you of your IR35 position?

[jtotheb]

I can agree to all this. The limiting factor in this discrete investigation is the OP who doesn't understand who controls the rate he is being paid.

No, I totally understand who's paying me, however, I am posting in the Welcome / FAQs forum hence needing advice on the process!

I have a good relationship with the client and I've had some very positive feedback from many people within the organisation too so I believed I'm valued. So much so that they want to have discussions with me about going perm. I believe I could have a discreet conversation with them.

I took a low rate as it was my first contract and wanted to get my feet under the contracting table.

Appreciate all the advice. I'll look through my contract and take all of it on board.

[northernladuk]

discreet

Ohhh, liking the linky as well as the correction. I expect the same in all your posts from now on.

[TheFaQQer]

I can agree to all this. The limiting factor in this discrete investigation is the OP who doesn't understand who controls the rate he is being paid.

discreet

[northernladuk]

I agree that you need to tread very carefully but I would never be afraid to make discrete enquiries. Some clients will discuss it openly, others are very strict about it. I certainly wouldn't be bothered about breaching any agreement with the agent not to talk about my rate.

Even if the agent finds out, what are they going to do? Terminate your contract so they earn no commission at all and make the client angry with them? Pffft. I don't think so.

I can agree to all this. The limiting factor in this discrete investigation is the OP who doesn't understand who controls the rate he is being paid.

[bobspud]

I agree that you need to tread very carefully but I would never be afraid to make discrete enquiries. Some clients will discuss it openly, others are very strict about it. I certainly wouldn't be bothered about breaching any agreement with the agent not to talk about my rate.

Even if the agent finds out, what are they going to do? Terminate your contract so they earn no commission at all and make the client angry with them? Pffft. I don't think so.

^ This ^ Even if they are dumb enough to pursue you in court you are a limited company that can just go bust...

What I would say to you is this: In three months time if they are not going for another 3 months on top, its going to be harder to find work as places close down for crimbo. My contract ends in October and I am already lining up a plan A for a better role with more money. Plan B is to stay put and expect a renewal which is more than likely and plan C might even be take another little job on the sly just to keep myself from being on here all day...

As for renewing, never renew just for the clients convenience always know that it suits you as well.

[Wanderer]

But again, check your contract first. The agent may have written something in that stops you talking to your client. Check very carefully first

I agree that you need to tread very carefully but I would never be afraid to make discrete enquiries. Some clients will discuss it openly, others are very strict about it. I certainly wouldn't be bothered about breaching any agreement with the agent not to talk about my rate.

Even if the agent finds out, what are they going to do? Terminate your contract so they earn no commission at all and make the client angry with them? Pffft. I don't think so.

[The Spartan]

£100 is a lot, could you get a gig elsewhere for the rate you have in mind? You have to balance it up, in other words if you're going to go ahead with it make sure you have something else lined up that way you'll be in a stronger position as you'll have something to fall back on.

[TheFaQQer]

I'm coming to the end of my first six month contract and, whilst I know the company are looking to extend me for at least another 3 months, the rate isn't particularly attractive and I'd like to try and negotiate an increase to my day rate. I'd ideally be looking to secure a £100 increase.

My question is, how the hell do I go about it? I don't want to p*** off my client, but equally, I know I'm undervalued (I recognised that I was new to contracting and hence wanted to get my 'foot in the door' so to speak). Do I contact the agent first? Do I approach my client and discuss it with them - sounding them out?

By what standard are you undervalued? Are you just thinking about the market in general, or have you got something more relevant to your situation which makes you undervalued? What justification can you put on your request to show that they should pay you an extra £100 a day?

£100 a day seems unrealistic - even if you are already on £1000 a day, that's still a 10% increase on your rate, and I doubt that you are on £1000 a day.

[northernladuk]

£100 is a big gap to make up. First you need to try and sound out the client, find what they are paying, say you'd love to renew but you think the agent is screwing you. You need to work out if you need to put the squeeze on the agent or the client. I'd guess the agent. You really need to be prepared to walk, the agents job is to negotiate his cut day in day out, he will be better at it than you.

If you persuade the agent you are prepared to walk he should reduce his cut unless he has an exclusive deal with the client, a bird in the hand etc.

But again, check your contract first. The agent may have written something in that stops you talking to your client. Check very carefully first.

Any contractor worth their salt will have found out what they are being charged at fairly quickly by one way or another. Printers are usually a good place to find useful info If you are really lucky or with Hays they will mail you the details to your inbox

[BigRed]

£100 is a big gap to make up. First you need to try and sound out the client, find what they are paying, say you'd love to renew but you think the agent is screwing you. You need to work out if you need to put the squeeze on the agent or the client. I'd guess the agent. You really need to be prepared to walk, the agents job is to negotiate his cut day in day out, he will be better at it than you.

If you persuade the agent you are prepared to walk he should reduce his cut unless he has an exclusive deal with the client, a bird in the hand etc.

[northernladuk]

Oh, and read your contract. It isn't unheard of to have a clause in saying you cannot discuss your rate with the client. Breaching this and causing a storm between client and agent could have you out the door before you can ask.

[northernladuk]

What extra are you worth to the customer, why should he pay £100 more than he is now? I am guessing £100 is a huge amount. Have you appreciated that what you want and what the client is willing to pay are two completely different things and have taken this in to account before speaking to the client so you don't make yourself look ridiculous? You have to weight it up and if it isn't commercially viable at best they say no at worst they laugh you out of the building.

Saying that you could roll up, demand your £100 and then just turn it down and leave if that is your intention. What percentage rise is £100 out of interest?

The fact you think talking to your client about a rate rise shows a level of naivity that makes me think you just ought to stick to the gig and keep quiet. Think about who your contract is with and how you fit in to the equation. If you cannot work this simple little bit of business out how on earth do you think you are worth £100 more and further to that how do you think you will have the gumption to take on an agent (oops gave the answer away) who does this day in day out and isn't going to lose sleep if you quit.

One thing you must do is sound serious. Stick your offer to him and then be prepared to walk if you don't get it. If you show a hint of bluster he will have you over a barrel in a shot. The fact you don't know who to speak to about the rise will give it away I am afraid.

All said and done there is no rule book on how to get a rise, it is about hard negotiation and a good business head. Think on your feet, second guess the agent, know exactly where you stand in the business equation and understand the business. You are severely lacking in this area I am afraid so I can't see you pulling it off.

Ask him for smallish rise that makes it worth him dropping his commission a little and not go look for someone new, you may have more success.

With only one gig under your belt and a bloody awful market I would concentrate on beefing up your time in contract before holding agents to ransom as well. Go small for now IMO.

[jtotheb]

Hi,

I'm coming to the end of my first six month contract and, whilst I know the company are looking to extend me for at least another 3 months, the rate isn't particularly attractive and I'd like to try and negotiate an increase to my day rate. I'd ideally be looking to secure a £100 increase.

My question is, how the hell do I go about it? I don't want to p*** off my client, but equally, I know I'm undervalued (I recognised that I was new to contracting and hence wanted to get my 'foot in the door' so to speak). Do I contact the agent first? Do I approach my client and discuss it with them - sounding them out?

Any help gratefully appreciated!