Renewing contracts with clients

I recently renewed two client contracts for another year. 🎉 Here’s my process for this in case you have a contract ending soon and want to increase your chances of getting it renewed.

My renewal plans start when I sign the contract

The contract usually states an end date for the engagement. So, after signing the contract, I immediately add a new to-do list task to follow up on contract renewal.

I set the task’s date to at least one month before the contract’s end date. This way, I have plenty of time to discuss the new contract’s terms with the client. The client’s ops department (or similar) also has time to prepare the new contract before the current one expires.

I get in touch about renewal in advance

(This step onwards assumes I still want to work with the client)

I’ll say something like:

“Hey [Client], just a heads-up that my contract with [Company] is ending on 2026! What are your thoughts on renewing it?”

And to strengthen my case for renewing the contract, I might also list some:

• Notable projects I helped with over the current contract period
• Results I’ve helped the client get

Then, I send my message and cross my fingers.

I discuss the new contract’s terms with the client

If the client replies to say they don’t want to renew, I’ll try to learn why.

But if the client says yes to renewal, I’ll discuss the new contract’s terms with them. Usually, its terms are identical to those in the current contract, except for:

• The new contract period
• My rate—I often take the opportunity to raise my rates if I feel conditions allow for it.

When considering whether to raise my rate for the new contract period, I think about things like:

• Changes to the scope of work: If the client is now asking for more things from me, I’ll likely propose a rate increase to account for these
• The client’s financial situation: If the client isn’t doing well, I might not increase my rate
• My contributions over the current contract period: Which projects did I help with? What did the client think of my work? If I helped with many projects and the client was happy with my work, I feel in a stronger position to raise my rate.

If I decide to raise my rate, I’ll say something like:

“I’d like to adjust my rate to $X (currently $Y). This is to account for (justification for increasing my rate).”

Then, again, I send my message and cross my fingers.

I receive the new contract

At this point, the worst that could happen is the client saying no to the rate increase. Which is fine, because I still get to work with the client, only at the existing rate (unless working at the existing rate has become unsustainable and I don’t want to continue).

But I’m always relieved when the client approves the new rate. This is even when I feel I have a good chance of having the rate increase approved.

So, once we’ve settled all the contract discussions, the client will send me the new contract. I’ll read it, and if everything is in order, I’ll sign it.

That’s it! From here, I’ll look forward to the continued collaboration with the client—and I tell them so. 🙂

(And yes, then I set a reminder to follow up when the new contract is about to expire, too. 😆)

More freelancer news

Upcoming webinars for self-employed persons

(I’m not conducting these sessions this time, but watch this space 👀)

Here are two free webinars in March you might want to sign up for!

• 12 Mar – Navigating your tax and retirement planning: With tax-filing season coming, this webinar will cover how to file taxes as a self-employed person. You’ll also learn how to plan and calculate your taxes, among other topics.
• 21 Mar – Parental leave for self-employed persons: Learn more about how self-employed parents can enjoy enhanced paid parental leave from April 2025 onwards.

Tidbits of info from Parliament

The Minister for Manpower recently shared the following info while answering two Parliamentary questions on self-employment:

• About 25% of self-employed persons weren’t able to make their mandatory MediSave contributions in 2024, mainly due to financial difficulty
• The Ministry of Manpower doesn’t track platform workers’ daily average hours as these workers’ working hours can vary widely from person to person