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Contract negotiation is tricky, and since the crunch it's become more difficult for contractors than for their agents or the end clients. Previously there were options that have since just dried up, no longer can you safely act uncommitted about renewing a contract, and stalling brings with it more danger than it once did.

Probably the best thing you can do in this situation is to ask yourself what the best negotiator you know would do in your situation. This may actually be the person you're negotiating with, as say what you want about agents, they are good negotiators.

The first step in all this is information gathering, and you need to do this without tipping your hand. Your agent will have already asked the end client if they want you back on site, they will also already have a good idea of what the market average rate is for a person in your field, and he will also have a good idea about how quickly he can fill the position.

The first two you can copy, you can easily ask the person that signs off your timesheet if they would want you back, and some basic internet research will give you a good idea about market rates, but the last is tough for you to judge, but this is where you use your relationship with your agent and the client.

In all cases the best approach is always transparency. Build an open and honest relationship with your agency and end client. If you keep the dialogue going you will know what is going on, how well you are doing (and therefore how indispensible you are), the real value of the contract (to both the client and the agency, how long it is going on and what costs and hassle would be involved in replacing you. Of course, implicit in all this is doing a good job. That will always be your best bargaining chip.

Hugo
27/02/2009