tag:blogger.com,1999:blog-6479216324334353167.post8574946958043906487..comments2011-02-05T09:30:42.917ZSticky Mediahttp://www.blogger.com/profile/06586227067418161446noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6479216324334353167.post-26646757926496976862011-02-05T09:30:42.917Z2011-02-05T09:30:42.917ZIf a contractor seeks a rate increase when a contract is extended, the client is actually suffering the consequence of a problem they have created.<br /><br />All too often a client wants to take on a contractor for 6 months or a year, but will only offer the contractor 3 months at a time. Therefore, during the year the contractor has to renew 3 times. If the client wants the contractor to work for a year at a fixed rate, then they should offer the contractor a 12 month contract, not a 3 month contract. As Bob Sherunkel commented, market rates fluctuate, so each contract should be based on the market rates available at the time the contract is agreed. If the client offers four 3 month contracts during the course of a year, then the market rate for each contract may well vary. So does the price of other goods and services. Just because the last time I filled up with petrol it was 127.9 a litre, doesn&#39;t mean I should expect to pay 127.9 next time I fill up. Petrol prices fluctuate and so do market rates for contractors. Perhaps you should explain that to your clients.EyesWideOpennoreply@blogger.comtag:blogger.com,1999:blog-6479216324334353167.post-37865056982983368532011-02-04T17:52:29.445Z2011-02-04T17:52:29.445ZMr Cooper, a lot of contracts are advertised as paying &#39;Market Rate&#39;. Over the course of a year the market rate for a particular skill may vary considerably, both up and down.<br /><br />A contractor is well within his/her rights to ask for a rate increase during an upswing, in the same way that a client may offer an extension at a lower rate during a down swing. It&#39;s called market forces. Have you ever had to go back to a contractor and tell him/her that the client is offering an extension at a lower rate? If so, did you attempt to dissuade the client from reducing the rate?<br /><br />One thing you have failed to mention is that when market rates rise, a client may be prepared to pay a higher rate to retain the services of a contractor who has proved that he/she can deliver, rather than take the risk of paying the higher rate that the market demands for somebody unknown.<br /><br />It sounds like you are trying to persuade contractors to forego rate increases, so you can avoid an &#39;awkward&#39; conversation with the client. The agency take their commission, which may be up to 20% of the contractor rate. You get that commission for actively managing the contract, which includes looking after the best interests of the contractor, as well as those of the client. Earn your commission!Bob Sherunkelnoreply@blogger.comtag:blogger.com,1999:blog-6479216324334353167.post-70361348771569050312011-02-04T17:36:48.164Z2011-02-04T17:36:48.164ZSo I&#39;m working on a contract and I find out that my peer group are all getting paid 10 - 20% more than I am. Even those peers who aren&#39;t working very effectively.<br /><br />It comes to renewal time and I&#39;m meant to sit back, shrug my shoulders and stick with my low rate?<br /><br />Are you serious?Penguinnoreply@blogger.comtag:blogger.com,1999:blog-6479216324334353167.post-31737874272194492652011-02-03T14:01:23.409Z2011-02-03T14:01:23.409ZI have worked as a contractor for many years and don&#39;t often ask for a rate increase when my contract is renewed. <br /><br />However, I found out that one agency I worked through got a rate increase (for the agency) every time I was renewed, even though I had not changed my rate.<br /><br />Now tell me that Sandersons don&#39;t do this kind of thing.Meldrewnoreply@blogger.com