Retainer Agreement: Purpose and Who Needs One
Jump to Section
Quick Facts — Retainer Agreement Lawyers
- Avg cost to draft a Retainer Agreement: $530.00
- Avg cost to review a Retainer Agreement: $840.00
- Lawyers available: 67 business lawyers
- Clients helped: 31 recent retainer agreement projects
- Avg lawyer rating: 4.93 (6 reviews)
What is a Retainer Agreement?
A retainer agreement is a work-for-hire legal document or a service contract between a company or an individual and a client. It falls between a one-off-contract and a permanent employment contract. It allows clients and customers to pay in advance for professional services of a company or individual.
You can read more on retainer agreements here.
Retainer Agreement Templates
Purpose of Retainer Agreements
The purpose of the retainer agreement is to set out the duties of the parties so that all parties have an agreement on the services that will be provided, how they will be provided, when and at what cost. Retainer agreements are typically used to hire lawyers and freelancers, although they may also be used for consultants, accountants, and other professionals.
The retainer fee ensures that the hired service provider reserves time for the client in the future when there is a need for their services. Unlike a one-time contract, a retainer agreement is a long-term work-for-hire contract and thus can retain ongoing services.
Here more on uses of a retainer agreement.
How Retainer Agreements Work
Retainer agreements do not work on a single formula. However, there is a basic structure followed in all retainer agreements. One party, like a contractor, agrees to provide certain number of hours or certain deliverables each month to the client. In exchange for locking in those hours or deliverables, the client pays a certain amount of fee, called the retainer fee, in advance to the contractor. Once the work is complete, the retainer fee applies to what the contractor is owed, and other hours will be billed at the contractor’s set rate.
CC verified
Advantages of Retainer Agreements
Retainer agreements are gaining popularity as service industries need more income stability and try to improve client relationships. Retainer agreements are widely used for legal services, consulting services, accounting services and by freelancers. Here are some benefits of using a retainer agreement:
- Stability: A one-off contract might not bring stable income to an individual or company that is offering its services. However, a fixed retainer fee associated with a retainer agreement ensures stability.
- Time Saved on Marketing: Given that freelancers and professionals would need to look for other clients after a one-off contract ends, marketing commitments are high in a one-off contract for the professional. In a stable retainer agreement, they benefit from a stable fee from the client and a long-term relationship with the client. Thus, they do not have to spend more time marketing themselves.
- Improved relationships: A retainer agreement is a long-term professional relationship. It ensures that the professional is available when needed by the client. This ensures a long-term partnership.
- Predictable Cash flow: Since retainers use an agreed upon retainer fee over a long period of time, it also makes it easier to estimate and maintain cash flows.
- Improved Work: With a retainer agreement, a professional Is paid on a continuous basis, allowing them to focus entirely on the clients’ needs and produce high quality work.
Disadvantages of Retainer Agreements
Retainers come with multiple benefits. Most freelancers and companies would agree that its benefits outweigh the drawbacks. However, there are drawbacks to a retainer agreement for both the client and the professional. Some of them are discussed below:
- Time: A retainer agreement the professional commits to a certain number of hours to the client. This means that they are being locked into a specific schedule.
- Opportunity: Being locked into a specific schedule means that the professional might have to pass on exciting opportunities that might come their way.
- Risk: For a client, retainer agreements can pose some risks. The client pays for the services before receiving them. In months where services are not needed, the client still pays for the hours agreed upon, thus losing money.
Here more on risks and benefits of a retainer agreement.
Image via Pexels by cottonbro
Who Needs a Retainer Agreement?
A retainer agreement is widely used in the legal field. It is common for people seeking legal services or anticipating needing legal services to pay a retainer fee to a lawyer who will be available when they need them. This retainer can be an advanced payment for a monthly recurring payment to the lawyer.
Retainer agreements are also used by consultants to provide services to a client over a long-period of time. Especially when the client and professional have established a relationship and the client predicts needing the consultant’s expertise, a retainer agreement provides access to the consultant’s time and services. Freelancers also find retainer agreements to be beneficial. Freelancers often struggle to find a stable source of income and a predictable cash flow. A retainer agreement is a great way to ensure that they have a stable income over a long period of time.
Are you planning to sign a retainer agreement? Here are some things you should consider.
Types of Professional Services Retainer Agreements
There are two types of retainer agreements that a company or individual can use:
- Pay-for-work retainers: Pay-for-work retainers are often used by companies and professionals that intend to receive ongoing payment on a monthly basis from their clients. This type of a retainer agreement is used when relationships with clients is slightly underway. Companies or professionals get paid for the hours of the work they provide. Pay-for-work retainers are not much different from a contract. However, unlike a one-off contract, professions under pay-for-work retainers are in a loop to deliver services to the client over a long period of time.
- Pay-for-access retainers: When companies and professionals prefer to get paid for making their expertise and knowledge available to clients, they use pay-for-access retainers. Under this, the client retains the profession on an ongoing basis when services are needed. This is generally used when the client has formed a relationship with the professional and trusts them to deliver high-quality services whenever required.
Here more on types of a retainer agreement.
Getting Help with a Retainer Agreement
Do you have any questions about a retainer agreement and want to speak to an expert? Post a project today on ContractsCounsel and receive bids from contract lawyers who specialize in contracts.
See Real Retainer Agreement Projects
Pennsylvania Looking to draft B2B and B2C agreements. Drafting
- Pennsylvania
- 6 lawyer bids
- $1,000 - $3,400
California Retainer Agreement and Non Compete Language Drafting
- California
- 6 lawyer bids
- $695 - $1,450
Arizona Draft Contract for Client Rretainers Drafting
- Arizona
- 9 lawyer bids
- $200 - $999
See all Retainer Agreement projects
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Need help with a Retainer Agreement?
Meet some of our Retainer Agreement Lawyers
Anna C.
I am a business attorney focused on practical, efficient contract drafting, review, and negotiation for healthcare organizations and growth-stage and established businesses. My work includes commercial agreements such as NDAs, MSAs/SOWs, leases, vendor and services agreements, SaaS, and employment and severance agreements. I partner closely with clients to identify key legal and business risks, deliver clear, business-minded redlines with concise issue summaries, and keep transactions moving. Clients value my responsive turnaround, judgment, and ability to balance risk with commercial objectives.
"Anna is always very responsive and on top of her projects. I have used her twice and will utilize her for future support."
Ryenne S.
My name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.
"Ryenne was professional and very helpful. Her review of our agreement broke down the legal jargon into laymens terms and helped our team discussions for the decision making process ~ Thank you!"
O.T. W.
Hi, my name is O.T. and I own The Walker Collective, a law firm that caters to the contractual, intellectual property, and business formation needs of creative entrepreneurs and small business owners. I am licensed to practice in Maryland and New York.
"O.T was very personable, knowledgable, and resourceful. Would definitely use her again!"
Valerie L.
Valerie is a passionate attorney specializing in Employment Law, Family Law, Personal Injury, and Business. With a strong foundation in the legal field, she is committed to helping individuals navigate the intricacies of their legal agreements. Valerie prioritizes open communication, ensuring her clients feel seen, understood, and confident as they make important decisions for their future. She is committed to empowering clients to become the best version of themselves while addressing their unique needs throughout the process.
"I had an excellent experience working with Valerie on my prenup. She was knowledgeable and thorough. She took time to answer my questions and explain items in detail. I felt completely supported throughout the entire process. Thank you for your professionalism and for making an otherwise stressful task feel more manageable. Highly recommend!"
Justin K.
I have been practicing law exclusively in the areas of business and real estate transactions since joining the profession in 2003. I began my career in the Corporate/Finance department of Sidley's Los Angeles office. I am presently a solo practitioner/freelancer, and service both business- and attorney-clients in those roles.
"Justin is a pleasure to work with and I would absolutely recommend. He was thorough, prompt, professional and knowledgeable. Will definitely use his services again in the future."
Tina T.
I am a New Mexico licensed attorney with many years of world experience in real estate, transactional law, social security disability law, immigration law, consumer law, and estate planning.
December 27, 2022
Brent W.
Brent has been in practice since 2007 and been the principal attorney and owner of The Walker Firm, LLC since 2014. Brent focuses on providing an array of general counsel services to individuals and companies in a variety of industries.
Find the best lawyer for your project
Browse Lawyers NowLawyer Reviews for Retainer Agreement Projects
Draft a template retainer agreement for our consulting company
"Good work"
ContractsCounsel User
Retainer Agreement and Non Compete Language
"Thank you for working with me and answering all of my questions!"
ContractsCounsel User
Consultant Retainer Agreement
"Paul is great to work with. He's responsive, listens to his client and he quickly provided the exact contract I needed."
ContractsCounsel User
Business Contracts
Retainer Agreement
Washington
Can a lawyer increase the retainer fee outlined in the retainer agreement after the agreement has been signed?
I recently hired a lawyer to represent me in a legal matter, and we entered into a retainer agreement that outlined the scope of the representation and the retainer fee required. However, after a few weeks, the lawyer informed me that they would be increasing the retainer fee due to unexpected complexities in my case. I am wondering if this is permissible under the retainer agreement, or if I have any rights to challenge this increase and continue with the original agreed-upon fee.
Merry K.
Thank you for your question. The answer is going to sound a bit vague, but a retainer agreement is a type of contract - like any contract, the answer depends on the terms of the agreement itself. Please read the agreement very carefully, and see whether or not an increase in the retainer is allowed or not under the terms of the agreement as written. Also, please note that most often, a retainer is simply a down payment on hourly fees that will be charged - if that's the case, the attorney will have more flexibility in asking you to pay in advance. If, on the other hand, you are being charged a flat fee for a service, the attorney may have less flexibility in changing the terms. I suggest that you carefully read through this page of information from the Washington State Bar Association for additional information: https://www.wsba.org/for-the-public/concerns-about-a-lawyer
Litigation
Retainer Agreement
Maryland
either in a flat fee or with a retainer, do attorneys charge for wait time in court/travel time to and from?
Have a protective order hearing coming up. I have the option of using a lawyer with no retainer agreement, but a deposit and an hourly rate or one with a retainer deposit and an agreement. In either case, is wait time in court charged at the hourly rate?how about travel time?
Michael T.
Generally speaking, we charge for all time spent on a file. If I'm away from my desk for your case, then I can't work on other cases. So, yes, a five-minute hearing in court might result in a two-hour bill, because that was two hours dedicated to your case. That's why lawyers like to schedule multiple cases for the same hearing: we can pro-rate the travel and waiting time over multiple cases. Flat fees do not normally get a charge for travel or waiting time, because that time is included in the flat fee. A lot of judges start their hearings by "calling the docket" (bringing up each case one by one) and getting time estimates; then calling the cases beginning with the shortest time estimates. Some judges leave all the cases without lawyers to the end. This results in (A) the people involved in cases without lawyers see how it's done; and (B) the lawyers spend less time sitting around waiting and go back to being productive.
Business Contracts
Retainer Agreement
Washington
What are the key elements that should be included in a retainer agreement?
I am in the process of hiring a lawyer to handle a complex legal matter and they have asked me to sign a retainer agreement. I am not familiar with the specifics of a retainer agreement and want to ensure that I understand the key elements that should be included in such an agreement. I want to make sure that my rights and interests are protected, that the scope of work is clearly defined, and that the fees and billing terms are fair and transparent.
Merry K.
That is an excellent question, and I wish more people asked. Every attorney writes these differently, but, like all contracts, retainer agreements are usually written to benefit the author, and it's often difficult to negotiate changes. For a very large and costly project, please consider paying either a contracts attorney or an ethics attorney for an hour or two of his or her time to review the proposed retainer before you sign, and perhaps help you negotiate it. One of the things to look for is (are) hidden costs - for example, will the law firm charge you $36 every time they write a one sentence response to an email question you may have? Will you or they be paying for experts - if so, who will be used, and will you have any say in their selection? How much will the experts charge? (EG - a doctor in a personal injury case could charge $1500/hour). Does the retainer include language regarding how disputes between you and the law firm will be resolved? Does the retainer fully comply with the Washington State Rules for Professional Responsibility? https://www.courts.wa.gov/court_rules/?fa=court_rules.list&group=ga&set=RPC (Please note - the court website system has been having technical problems - in addition to the rules, there are also innumerable opinions interpreting the rules - only a true ethics attorney will be on top of all of these).
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
View Trustpilot ReviewNeed help with a Retainer Agreement?
Business lawyers by top cities
- Austin Business Lawyers
- Boston Business Lawyers
- Chicago Business Lawyers
- Dallas Business Lawyers
- Denver Business Lawyers
- Houston Business Lawyers
- Los Angeles Business Lawyers
- New York Business Lawyers
- Phoenix Business Lawyers
- San Diego Business Lawyers
- Tampa Business Lawyers
Retainer Agreement lawyers by city
- Austin Retainer Agreement Lawyers
- Boston Retainer Agreement Lawyers
- Chicago Retainer Agreement Lawyers
- Dallas Retainer Agreement Lawyers
- Denver Retainer Agreement Lawyers
- Houston Retainer Agreement Lawyers
- Los Angeles Retainer Agreement Lawyers
- New York Retainer Agreement Lawyers
- Phoenix Retainer Agreement Lawyers
- San Diego Retainer Agreement Lawyers
- Tampa Retainer Agreement Lawyers
ContractsCounsel User
Pilot & Retainer Agreement Review
Location: Texas
Turnaround: Less than a week
Service: Contract Review
Doc Type: Retainer Agreement
Page Count: 17
Number of Bids: 13
Bid Range: $700 - $2,500
ContractsCounsel User