What is Retainer Agreement Drafting?
A retainer agreement is a contract between a professional, such as a consultant or lawyer, and a client for ongoing services in exchange for compensation. It must clarify important aspects of their arrangement, such as the scope of work, how and what payments will be made, and confidentiality provisions.
If you need to draft a retainer agreement, you might wonder how to navigate the process, especially if you’ve never written one before.
Read the rest of this article for guidance. We’ll look at what key terms you should include in a retainer agreement, how to draft it accurately, and why you should hire a lawyer to help you establish a fair, clear, and valid agreement.
What are Key Terms to Include in a Retainer Agreement?
Here’s a rundown of some of the most essential sections to include in a retainer agreement.
- Work scope. This outlines the specific services that will be provided.
- Payment. This specifies how much the retainer costs, such as if it’s a fixed price or hourly payment.
- Termination. If a party wants to end the contract earlier than expected, the agreement should explain how they can achieve this, such as if they need to give a certain number of days’ notice.
- Confidentiality. There should be a clause in the agreement that protects any sensitive information, such as the company’s trade secrets.
- Ownership. Since work products might be created during the agreement term, such as if one party is a freelancer, the contract must outline who owns the deliverables and when transfer of ownership should occur.
- Dispute resolution. If conflicts arise, the agreement should include a dispute-resolution method, such as mediation or arbitration.
- Amendments. Should either party wish to change anything in the retainer agreement, the agreement should state that it’s put in writing and agreed on by both parties.
What are Tips for Drafting a Clear Retainer Agreement?
When drafting a retainer agreement, there are some things to consider. Here are some tips to bear in mind so you don’t miss anything important.
Note the Excluded Services
When drafting the work scope clause, the retainer agreement should not only specify what services are included but also which ones aren’t. This will prevent scope creep from occurring, which can result in payment disputes.
Provide Performance Standards
You want to include metrics that will help you to assess the quality of the service. When doing this, outline how delays or shortfalls will be measured and addressed.
To ensure that services meet the required standards, the agreement should include information about how the service provider will track all the work they do. This will create transparency and help them to properly bill the client, preventing misunderstandings or disputes.
Include Additional Fees
Besides the retainer fee, there might be other expenses involved in the retainer agreement, such as if the client is hiring a professional lawyer. The agreement must explain how and when the client will have to pay such fees so that there’s transparency.
Consider Renewal or Review
When the agreement is due to come to an end, you’ll want to consider if you want to finalize termination or continue the arrangement. You could mention in the agreement that you and the other party will review the agreement to assess if you want to extend it.
How Does a Lawyer Help You with Retainer Agreement Drafting?
Hiring a lawyer to draft your retainer agreement will ensure it’s clear and detailed to minimize your risk of disputes with the other party. Here’s a rundown of some essential tasks a lawyer will perform during the drafting process:
- Work scope clarification. The agreement will be drafted professionally so that it details what services are included and excluded.
- Fee structuring. All payment terms will be included so that there’s no confusion.
- Responsibility establishment. Both parties must know what is expected of them so that their expectations are aligned.
- Compliance. A lawyer has legal knowledge and experience to ensure your agreement is compliant with all professional standards and laws. This prevents legal disputes.
- Customization. Unlike when using a generic contract template, hiring a qualified lawyer to draft your agreement ensures that it’s tailored to your specific requirements and working arrangement.
Besides drafting a retainer agreement, a lawyer can also review a contract you’ve already written, giving you peace of mind that it’s fair and professional.
Where to Find a Lawyer to Draft a Retainer Agreement
Now that you’ve decided to hire a lawyer to draft your retainer agreement, you might wonder where to find one. Although you might think you have to ask people you know for lawyer recommendations, you don’t have to. Instead, you can use online legal platforms that make finding and hiring a lawyer an easy task.
ContractsCounsel is an online legal marketplace that gives you access to a curated network of vetted, experienced lawyers. To request that one of them drafts your retainer agreement, follow these easy steps without having to leave your house:
- Go to the ContractsCounsel marketplace.
- Post your project for free. You might want to include a few details to help you find the most suitable lawyer, such as the type of retainer agreement you need.
- Wait for lawyer bids. Receive multiple bids from lawyers directly on the platform who have the expertise and experience to assist you.
- Review the lawyers’ profiles. The platform provides extensive lawyer data, such as their location, client ratings for previous projects, expertise, and credentials. This helps you to choose the most suitable lawyer.
- Connect with a lawyer you think is best suited to your requirements and hire them to draft your retainer agreement for a flat fee.
