What is a Retainer Agreement and How Does it Work?

What is a Retainer Agreement?

A retainer agreement is a contract between a client and a service provider, commonly used in fields like legal, consulting, or creative services. This contract outlines the relationship's terms, including the scope of work, payment structure, and duration. Clients pay a retainer fee upfront to ensure the service provider's availability and commitment to deliver services as required.

How Does a Retainer Agreement Work?

The payment structure typically involves a retainer fee, which is an up front payment covering a specific number of hours and/or services. Any additional work beyond the agreed scope may incur extra charges. The agreement also defines the specific services to be provided, which can range from ongoing support (like fraud tip line management) to project-based work (fraud policy drafting). Additionally, retainer agreements usually specify a duration, including terms for renewal or termination. For example, our fraud risk assessments are comprised of a pdf report of your business's fraud risks, survey results, and an action plan along with 3 months of follow-up services.

Benefits of a Retainer Agreement

One of the main advantages of a retainer agreement is predictable costs, allowing clients to budget effectively. Clients receive priority access to services over one-time clients, fostering a stronger long-term relationship between us and our clients. Regular invoices detailing the work performed help maintain transparency regarding the utilization of the retainer fee.

Unused Hours

If retainer hours go unused by the end of the contract date they can either be rolled over into continuing the same service, a new service, or be refunded to the client.