IT Contract negotiation advice

[digger_R]

I'm an IT contractor 'employed' in NL with a contract with my agent (looks like a permie contract) with an unspecified duration. Usual mechanism is that I receive a purchase order for x months (usually around 12) each time.

My current PO expires at the end of march, my agent informed me this morning the end client intends to 'align' rates amongst the different suppliers (agencies). The agent implies this would mean a rate cut for me as I'm paid above the grade median (plus some other waffle).

So, what would your strategy be for at least maintaining the current rate? For info, I could walk away from the role as I'm not financially reliant on the income. A small amount of bloody mindedness means I simply don't want to reduce my rate.

[ewenm]

Justify why you're worth more than the median rate (experience, skills, client relationship, importance to the project, etc) in a business case and decide at what level you walk away as they might refuse to budge.

[digger_R]

Any ideas on how to direct this as my point of contact is the agent and not the client. I have a good relationship with the hiring manager at the client site, so I assume I can expect some level of support from him.

[ewenm]

I did this recently and had to go through the agent rather than direct to the client. My agent was pretty good in just forwarding on my business case to the client (obviously it is in the agency interests to maximise your rate too!) and calling me with their response.

[bigandclever]

How transparent are the numbers between clientco > agent > yourco

In other words, is there some scope for readjustment by the agent.

[digger_R]

@ ewen would you mind forwarding a copy of the case you mind (minus any personal details or sensitive info), if so I'll send a pm


wrt to agent margin, I'm fairly sure my agent is taking less that 10% as this came up in previous negotiations. They also have circa 250 contractors at this particular site so it's not as if I'm the only one who will be looking to maintain my rate. Having a strong case for it is only going to help my case.

I appreciate all the input so far!

[ewenm]

Send me a PM and I'll dig out the case when I get home.