Re: Contract rates

[Andrew Davis <adavis -at- VERITY -dot- COM>]

Maria --

Contract rates are a function of the contractor's and client's (relative)
ability to negotiate, and what the market will bear.  In the Silicon Valley
(to expand on what Corinne Stefanick, Temp2%GMP%Chiron -at- LARRY -dot- CHIRON -dot- COM, said),
the variables are:

        1 Does the contractor have recent, hands-on experience with your tools            and
 technology (preferably for a competitor)?
        2 Is the client unlikely to find someone else who fits their 'technical
          background wish-list'?
        3 Is the product complex, conceptual, and intended for sophisticated
          users (as opposed to simple, procedural, and intended for end users)?
        4 Is the deadline unreasonably tight or ambitious (a factor of how much
          work is needed in a given period to do a decent job the first time)?
        5 Are information resources unavailable, unhelpful, or resentful?
        6 Does the contractor have to be onsite all or most of the time (as
          opposed to being allowed to telecommute from their home office)?
        7 Will the contractor only get paid within 45-60 days (typical of big
          companies) or within ~10 days of invoice?
        8 Will the contractor get paid net (with taxes withheld, as if they
          were a temp employee -- brokers do this to us a lot) or gross (with
          no taxes withheld)?
        9 Does the contractor have to work through a broker? (Big companies
          think they're protecting themselves this way -- they are NOT.  I can
          explain, if you have a couple hours to listen.  It has to do with
          Section 1706 of Ronnie's 1986 'Tax Simplification' Act, and the IRS's           20
 Questions.)

In all cases, if the answer is yes, experienced contractors will:

 * (in items 1 and 2) know that they have little competition and therefore not
   try too hard to bid competitively.
 * (in items 3 through 9) anticipate frustration and raise their rates
   proportionately to offset the (perceived) inconvenience.

I hope this helps.

- Andrew Davis
  President, San Francisco Chapter, STC
  (on contract at Verity in Mountain View, CA)

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}From TECHWR-L -at- VM1 -dot- ucc -dot- okstate -dot- edu Fri Oct 22 12:19:58 1993
}Return-Path: <TECHWR-L -at- VM1 -dot- ucc -dot- okstate -dot- edu>
}Date:         Fri, 22 Oct 1993 14:57:35 -0400
}Reply-To: "Technical Writers List; for all Technical Communication issues"
         <TECHWR-L -at- VM1 -dot- ucc -dot- okstate -dot- edu>
}Sender: "Technical Writers List; for all Technical Communication issues"
       <TECHWR-L -at- VM1 -dot- ucc -dot- okstate -dot- edu>
}From: Maria Townsley <maria -at- MSD -dot- MEASUREX -dot- COM>
}Subject:      Contract rates
}Comments: To: TECHWR-L -at- vm1 -dot- ucc -dot- okstate -dot- edu
}To: Multiple recipients of list TECHWR-L <TECHWR-L -at- OSUVM1 -dot- BITNET>
}Content-Length: 603

}What is the average rate for a contract writer?  When I looked for a contract
}writer earlier in the year, I received resumes that requested salaries at
}the low and high end of a h*u*g*e range.  What are the going rates right now?
}What kind of factors affect the salary (i.e., job duties, length of contract,
}etc.)

}Thanks,
}Maria


}Domain: maria -at- msd -dot- measurex -dot- com       Maria Townsley  Technical Publications
}  UUCP: ...uunet!mxmsd!maria         Measurex Management Systems Division
} Voice: (513)-825-3931 x-316         1280 Kemper Meadow Drive
}   Fax: (513)-825-5393               Cincinnati, Ohio 45240