Asking for a raise in case of consultant

[Preeti Arora]

Hi,

I am looking for suggestions from fellow ranchers.
I am working as a consultant and there are two layers of contact from the client.
Suppose Company A deals directly with client and I am the employee of company B.Both companies keeps their share in the pay rate.I need a raise.Most of the share is taken by company A.
Will it be good idea to apporach company A directly to increase my pay rate and how should I ask for it?

Thanks .

[amit punekar]

Hi there,
As far as I know Company A would be very reluctant to increase your rate.I am also in similar mess and I tried asking it once.
Only way out to increase your pay is to leave company B which is second tier consultancy and join some tier 1 like company A. The main problem here is some kind of contract that you and company A might be having.I am not sure of legal issues and all but thats the only way to come out of this.
Thanks,
Amit

[Preeti Arora]

Thank you for reply.
I am not aware of exact contract details but my feeling is the contract is 2yrs long.Will it be possible to leave company B (current company)in this case and join company A?I have not completed 2 yrs yet.I like working for this company thats why I was thinking to get the raise from one which is dealing with direct client.
I appreciate any advice.
Thanks.
[ February 27, 2008: Message edited by: Preeti Arora ]

[Andy Stone]

HI, although I am still a newbe to Java, I do know something about contracts and have been a contractor myself. Your situation has to areas you need to be very clear about. 1) will company B sue you if you leave prior to your 2 year commitment and 2) can company A hire you if you have been a recent employee of company B. Often contracts are written to �lock the Tech In� so you can not move to the often much larger company.

The first approach I would take would be to make a case by showing my track record of good work done with company B. If they do not want to give you a raise, you have put them on notice you may leave. This will answer the question CAN you leave prior to your 2 year commitment IF you have one; IF not (no 2 year commitment) tell company A your thinking of leaving, let them make you an offer if they really want you. OR IF not (no 2 year commitment) look for totally new work in a direct company A situation,

In any case you must research what a TECH in your area with your EXPIRENCE is normally paid. Ask other consulting firms, and ask other TECHs in your area. Andy

[Mark Herschberg]

Are you a W-2 employee of company B or a 1099? Is the contract between A and B fixed rate or time and materials?

--Mark

[Preeti Arora]

I am a 1099 employee ...currently on H-1.
The rate between company A and company B is fixed with x$/hr.
I dont know of any contract they have signed in between themselves.
My project gets extended every 6 months.

[Mark Herschberg]

Since you're an H-1 (I'm not sure what that is, but I assume it's similar to an H-1B), I presume you're not a US citizen. You'll probably need to a) tell us a little more about the contract and an b) tell us what legal system has jurisdiction. (Then you'll likely have to get a lawyer to confirm what people suggest.)

I know in the US H1-B's in the US from large countries like India and China have very little negotiating power.

--Mark