If you are a contractor, you are a business. You should be negotiating every single time a contract is signed, extended, or renewed. Yet, most contractors are terrible at this. They treat the "Bill Rate" like a salary. If the recruiter says, "The rate is $80/hour," most candidates say, "Okay." Stop doing that. You are leaving money on the table. Here are the exact scripts to get that extra $10/hour.
For more on contractor pay, check out our guide on contract vs full-time salaries.
The Scenario
Recruiter: "We have a great role. It pays $75/hour." You (Old Way): "Okay, that sounds good." You (New Way): "Thanks. Based on the complexity of the migration you described, I was targeting a range of $85–$95/hr. Is there any flexibility in the budget to get closer to that range?" The Result: They come back with $85/hr. You just made an extra $20,000/year with one sentence.
The Old Way vs. The New Way
The old way was "Accepting the Offer." The new way is "Finding the Margin."
| Feature | The Employee Mindset | The Contractor Mindset |
|---|---|---|
| Negotiation Frequency | Once every 3 years. | Every 6 months (Renewal). |
| Leverage | "I work hard." | "Replacing me costs you $50k." |
| Focus | Annual Salary. | Hourly Bill Rate. |
| Objection Handling | "Okay, I understand." | "Let's reclassify the role." |
1. The "Initial Offer" Script
Use this when you first get the rate. Never say "No." Just say it's "low." Script: "Thanks for sharing that. Regarding the rate—$75/hr is a bit below where I’m currently landing for similar senior roles. Based on the complexity of the work, I was targeting $85–$95/hr. Is there any flexibility to bridge that gap?" Why it works: You gave a range. $85 looks "cheap" compared to $95.
2. The "Competing Offer" Script
Use this to speed them up. Script: "I appreciate the offer. To be transparent, I’m in final rounds for another contract at $95/hr. However, I prefer your team’s tech stack. If you can match their rate, I would be ready to sign immediately and stop the other process." Why it works: "Ready to sign immediately" is music to a recruiter's ears.
3. The "Renewal" Script
Send this 3 weeks before your contract ends. Script: "Hi [Manager], I’m excited to extend the contract. Since I joined 12 months ago, the scope of my role has expanded (e.g., taking over the CI/CD pipeline). Given the increased responsibility and current market rates, I’d like to adjust my bill rate to $110/hr for the renewal term. Does that work for the new PO?" Why it works: It reminds them of your value. Replacing you is a nightmare. They will pay to keep you.
4. The "Budget Cap" Rebuttal
Recruiter: "We have a strict budget cap of $80." You: "I understand. However, given that this role requires Architecture responsibilities, would it be possible to classify this under the 'Architect' or 'Specialist' rate card instead? That might unlock the budget we need." Why it works: It gives the manager a loophole to bypass HR rules.
The Real Numbers
What is $10/hour worth?
| Rate Increase | Weekly Gain | Annual Gain (2000 hrs) |
|---|---|---|
| +$5/hr | $200 | $10,000 |
| +$10/hr | $400 | $20,000 |
| +$20/hr | $800 | $40,000 |
Frequently Asked Questions
Q: Will they pull the offer if I negotiate? A: Almost never. The worst they say is "No, the budget is firm."
Q: Can I negotiate payment terms? A: Yes. If they won't budge on rate, ask for Net-15 payment terms (get paid faster).
Q: What if I work with an agency? A: The agency takes a cut (margin). If you push for a higher rate, they might lower their margin to close the deal. Push them.
Q: Should I negotiate if I'm desperate? A: Yes, but be gentle. Use the "Soft Push" script.