How much is risk worth (ratewise)?

I was contracting on an insurance project last year for about 8 months. Supposedly ongoing into 2005. At the beginning of December the higher ups decided not to renew funding for 2004. About 80% of the 20 person team was let go (with 3 weeks notice/pay) and the remaining fulltime staff assigned to other teams.

Now the project is ramping up again and they want me back. My original rate was $48/hr and right now I'm at contract for $43/hr (both through brokers). I liked the atmosphere and work environment of the first project. The technologies we were using also made the project fun, its closer to my apartment, I have a membership to a gym nearby, free parking, inhouse cafeteria. Sounds like a few other contractors are coming back on board too - so I'd like to go back.

I'm just wondering how much I should up my rate. It took  time to find a new place and it seems like I should at minimum increase by around %10 (to $53/hr).

Anyone else had this experience? In some respects I feel like I got burned by the sudden budget cut. But that risk I don't mind taking for a good environment and a little extra money.

anonymous
Friday, May 14, 2004

Is there a place where your contract couldn't
be at risk by a sudden budget cut?

son of parnas
Friday, May 14, 2004

They want you back so you have negotiating power. Of course you should demand a rise. $53 per hour might even be a bit low.

Don't tell them how much you liked the job. Tell them you like the new job and are settled in with it, but would be prepared to move back.

Inside Job
Friday, May 14, 2004

Son of Parnas,

In theory - no.
In practice - yes.

Startups and failing projects are more likely to get cut. Right now I'm on a government contract. It's unlikely to get cut (at least without some warning). In between are normal projects. Profitable projects don't get cut very often under normal conditions.

I think you have a good point that no job is secure.

anonymous
Friday, May 14, 2004

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