RE: contractor rate

Subject: RE: contractor rate
From: "Greg Thompson" <gthompson -at- conformia -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Tue, 31 Aug 2004 12:48:05 -0400


Thanks for the excellent summary of what it means to be in business for
oneself. Since I am relatively new to contracting full time, compared
with my time spent as a full time employee, I often fall back in the
regular employee mentality.

-----Original Message-----
From: TechComm Dood [mailto:techcommdood -at- gmail -dot- com]
Sent: Tuesday, August 31, 2004 7:30 AM
To: Greg Thompson
Cc: TECHWR-L
Subject: Re: contractor rate

> What do you do when a client quotes you one rate during an interview
for
> a contract position and then sends you an acceptance letter (by email)
> announcing that they want to hire you for this contract but at a rate
> lower (7 dollars per hour lower) than the one they originally quoted
you
> at?

Why are THEY setting YOUR rate as a contractor? Shouldn't YOU be
furnishing THEM with your rate, and then negotiate from there?

> I took the position but I did ask them about the rate change just to
> make sure I wasn't the one who was in error about the original rate.
> They said my original understanding was correct but then re-evaluated
> their costs and decided they didn't want to pay the rate the
originally
> quoted me. I didnt like this but hey, I needed the money so I meekly
> tucked by figurative tail between my legs and took the job.
>
> I have enjoyed this contract. They have treated me well and this
economy
> some money is better that no money so I can live with this. However, I
> do want to learn from this experience
>
> How could I have handled this differently?

You set your rate in the form as a bid for the work. You indicate all
the requirements up front from your contractor viewpoint. They either
entertain it or not. If they entertain the bid, there may be some
haggling back and forth. Generally, if they want to reduce the rate I
usually counter with reducing the scope of the work, or other
requirements.

For example, say I bid a job 50/50 remote/onsite for 3 months of
documenting a fairly straightforward GUI product, using my own
equipment and gas at my own expense for commuting, for $50/hr. If they
come back wanting to pay $40/hr, I then haggle. Maybe I take it with
the understanding that all work is done onsite only, weekdays only,
and they expense my gas mileage. Or, maybe I take it and do all the
work remotely, with an added clause that they will be billed extra for
overtime. Or a million other possible deals.

Just remember that your contract is YOUR business, not theirs. If you
aren't comfortable with the deal, you may either want to change it
before agreeing to it or walk away (maybe they'll cancel their counter
offer if you decline). Yes, you're looking for work, but as a
contractor you are essentially going into business for yourself
(formally or informally, that's the case). Your business requirements
need to be met, as well as theirs. It's your job to meet yours, and
their job to meet theirs.


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