IT Contractors: Day rates
Discussion
What's the general consensus of opinion on day rates amongst our many IT Contractors?
I have a prospective client who insists on a fixed day rate with agreed minimum and maximum hours to be worked in a day. Can't say I'm very keen on the idea and would value people's opinions and experiences.
I have a prospective client who insists on a fixed day rate with agreed minimum and maximum hours to be worked in a day. Can't say I'm very keen on the idea and would value people's opinions and experiences.
Jon,
Daily rates are not a new thing by any means and are industry standard in many sectors, Investment banking being one of them.
You tend to find that more and more support roles are now paid on a daily rate.
Development roles on the whole have escaped this trend.
This is not a new thing and is there to prevent contractors chalking up to many hours, it allows for easier cost and budget control or forecasting. (I am sure you dont need me to tell you that)
Anyway it does not have to be a bad thing you can negotiate a good deal in just the same way you would an hourly rate anyway.
I.E. The client/agent says
1 day = a minimum of 8 hours.
You say OK if I work for 10 hours each day for 4 days can I bill you for 5 days.
and if I work 4 hours I will bill for 1/2 day 2 hours 1/4 day etc.
Or alternatively if the client says 1 day = 8 hours minimum, and you will never be asked to work over 10 hours, ask if in that case you can write it into the contract that any hours worked above 10 in any one day will be paid at daily rate / 10 x overtime hours x 200%
You will find that clients will often agree to these terms as the daily rate directive may have come from purchasing or some other bean counting dept.
In the current market hiring companies are asking for more and more from contractors and are paying less and less. And with headcount and budgets under permanent review clients will want to keep an eye on every penny, daily rates are just a way of doing that.
Hope that helps.
Kind regards,
Sam Newell
Daily rates are not a new thing by any means and are industry standard in many sectors, Investment banking being one of them.
You tend to find that more and more support roles are now paid on a daily rate.
Development roles on the whole have escaped this trend.
This is not a new thing and is there to prevent contractors chalking up to many hours, it allows for easier cost and budget control or forecasting. (I am sure you dont need me to tell you that)
Anyway it does not have to be a bad thing you can negotiate a good deal in just the same way you would an hourly rate anyway.
I.E. The client/agent says
1 day = a minimum of 8 hours.
You say OK if I work for 10 hours each day for 4 days can I bill you for 5 days.
and if I work 4 hours I will bill for 1/2 day 2 hours 1/4 day etc.
Or alternatively if the client says 1 day = 8 hours minimum, and you will never be asked to work over 10 hours, ask if in that case you can write it into the contract that any hours worked above 10 in any one day will be paid at daily rate / 10 x overtime hours x 200%
You will find that clients will often agree to these terms as the daily rate directive may have come from purchasing or some other bean counting dept.
In the current market hiring companies are asking for more and more from contractors and are paying less and less. And with headcount and budgets under permanent review clients will want to keep an eye on every penny, daily rates are just a way of doing that.
Hope that helps.
Kind regards,
Sam Newell
suggest that you factor some uplift into your daily rate... lets face it, who actually ever only works a 7.5 or 8 hour day?!?!?
if a normal working day is 7.5hrs, then charge or ask for a daily rate based on 8hrs.
of course 1st thing you've gotta do is get an opportunity in todays market place....
if a normal working day is 7.5hrs, then charge or ask for a daily rate based on 8hrs.
of course 1st thing you've gotta do is get an opportunity in todays market place....
Thanks for the info Sam.
Yes, I was aware that it was not a new thing but have so far managed to avoid having to work under a daily rate regime. With the current climate I can't afford to be so choosey so might avoid it no longer.
General feeling from private emails I've had from other (mostly non-PHer) contractors is that it is a less desirable way of working due to the increased risk of the client screwing you over for unpaid overtime, but I knew that anyway.
Yes, I was aware that it was not a new thing but have so far managed to avoid having to work under a daily rate regime. With the current climate I can't afford to be so choosey so might avoid it no longer.
General feeling from private emails I've had from other (mostly non-PHer) contractors is that it is a less desirable way of working due to the increased risk of the client screwing you over for unpaid overtime, but I knew that anyway.
Unfortunately I am being offered a daily rate rather than asking for one. Such is the current climate I guess.
s3_mcd said: suggest that you factor some uplift into your daily rate
Edit: What I mean is the agent is saying "this is the daily rate the client wants to pay you".
However, he has let it slip that the client is having trouble finding the right people with the right qualifications and experience, so that does strengthen my hand a little.
>> Edited by JonRB on Thursday 24th April 23:16
Although it may not be a good stance, but the line I follow is :
Daily rate for 8 hours on contract, I work 8 hours and go home. If extra is needed, arrange (as someone said) for time off in lieu, preferably in writing.
Especially with the huge drop in rate that seems to be afflicting everyone (for me 40% drop, and there is no work in the UK at the moment), make it clear you won't be doing much overtime.
Banks are notorious for pushing a daily rate based on 7 hrs, and then expect you to do a minimum 9-10.
As a developer (of sorts) I have been forced to daily rates (UK) for about 3 years.
Sparks (exiled to Saudi, and now Switzerland)
Daily rate for 8 hours on contract, I work 8 hours and go home. If extra is needed, arrange (as someone said) for time off in lieu, preferably in writing.
Especially with the huge drop in rate that seems to be afflicting everyone (for me 40% drop, and there is no work in the UK at the moment
), make it clear you won't be doing much overtime. Banks are notorious for pushing a daily rate based on 7 hrs, and then expect you to do a minimum 9-10.
As a developer (of sorts) I have been forced to daily rates (UK) for about 3 years.
Sparks (exiled to Saudi, and now Switzerland)
If it's odd-job daily rate stuff, it may also be acceptable to build in some of your travel time - which is how both the consultancies I've worked for worked it.
Depends how far away you are from the client, but one of mine is 2.5hrs from here, and they're happy for me to turf up at 10 - 10.30 and leave at 4.30 or so, so long as the job gets done. That's the nice thing about finding these sorts of clients: deep pockets, and the emphasis is on results, not hours with bum on seat.
Depends how far away you are from the client, but one of mine is 2.5hrs from here, and they're happy for me to turf up at 10 - 10.30 and leave at 4.30 or so, so long as the job gets done. That's the nice thing about finding these sorts of clients: deep pockets, and the emphasis is on results, not hours with bum on seat.
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