Comments on: Mr Angry’s rules for employing contractors

By: How to get the most value for your consulting dollar « Alec the Geek

How to get the most value for your consulting dollar « Alec the Geek — Tue, 21 Nov 2006 03:20:40 +0000

[...] Mr Angry makes some comments about employing contractors. A few weeks ago I made a presentation at the OSDClub on how to get the greatest benefit from using consultants. i.e. paying project budget for outsides to perform services for you. As it was very much a personal perspective I would be very interested in people’s comments, just click the mind map on the left to see the full size version [...]

By: Mr Angry

Mr Angry — Mon, 07 Aug 2006 02:49:21 +0000

Excellent advice cont. Perception often becomes reality so you have to seem valuable to become valuable.

By: cont

cont — Mon, 07 Aug 2006 02:11:22 +0000

As someone who acts as an agent and formerly did a fair amount of contract work, the issue of pay increase ultimately boils down to how much value you as a contractor brings to the equation. For contractors that are light on experience, but quickly become key to the client’s operation and are on friendly terms with everyone concerned, you can get away with asking for increases every 3mo to 6mo, up to the point where your fee exceeds say 10-20% of the local going rate. If you can’t become a key person for your client and your fee is at the local going rate, then expect to have a hard time asking for increases even after a year.

The moral of the story, get as friendly with the client company/employees and find a way to make yourself indespensable (for as long as you want to stay with that particular client). Usually the client will be more than happy to raise your fee (within reason) if it means that you will stay on for the duration of the project/job/etc. When you want out, plan out a skill transfer and at the same time price yourself a little higer than the market rate. Things will generally sort themselves out.

By: Mr Angry

Mr Angry — Sun, 30 Jul 2006 08:57:40 +0000

I agree, yearly is fine with asking for a pay increase. Any shorter term than that is a bit of a grey area and you have to take it on a case by case basis.

By: range

range — Sun, 30 Jul 2006 00:32:46 +0000

Hey, every year, you can ask for an upgrade. I was able to renogatiate a contract with almost a 85% premium on what the contract was worth the year before.

It also depends on how high your fees are. If they are quite high, let’s say over 10000 a month, you can pretty much forget getting large premiums. However, if you started lower, there is always room for improvement.

I know of a worker who automatically increased all his rates every six months by 10%.

By: Mr Angry

Mr Angry — Sat, 29 Jul 2006 23:28:46 +0000

Jan: the joel on software forums could be a good source of info on that.

By: Jan

Jan — Sat, 29 Jul 2006 13:46:42 +0000

how about hiring a teleworker when you can’t find anyone specialized enough in your area? any experience anyone?

By: Mr Angry

Mr Angry — Fri, 28 Jul 2006 23:05:30 +0000

Salamaat. There are no hard and fast rules, the first question is are you contracting directly through the company or via an agency? The person emplying you is the one you have to talk to first about renewals and rates. Do an internet search on pay rates for your work so you know what to compare to. What it comes down to is if someone else is prepared to offer you more than the current place then you go somewhere else (not ranking this on menoy alone).

Six months is often seen as too short a period to ask for a raise but this isn’t a set rule. If someone else is offering you more they have to compete or lose.

By: Maliha

Maliha — Fri, 28 Jul 2006 16:41:48 +0000

Salamaat Mr. Angry:)
awesome post:) i have a question…i just started contracting this year; and my six month contract renewal is up….should i ask for more at this point? and how much more (percentage wise?).

Just curious what your thoughts are on that; or if there is a standard guide out there somewhere.