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Any of the real Project Managers that lurk on CUK should be able to help you.
Negotiation with suppliers is rarely just on price. The trick is to look at all the T's and C's and figure out where the manoeuvrability is. Which of these (for example) would you like to get if you couldn't get a rate increase;
- Working from home more frequently
- Occasional paid flights home or better accomodation (if expat)
- Getting paid more quickly (less applicable if via an agency, I agree)
- Performance bonuses for faster delivery
You get the idea. Most negotiations break down because they concentrate too much on price.
My 2p's worth.