Retainer Agreement Template
Monthly retainer contract for ongoing client relationships.
What's Included:
- Monthly retainer fee structure with included hours and overage rates
- Unused hours policy—rollover, forfeit, or credit options
- Auto-renewal clause with opt-out notice period
- Monthly reporting requirements and communication expectations
Available Formats:
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Retainer agreements create predictable revenue for service providers and guaranteed availability for clients. This template structures the arrangement clearly so both parties know exactly what is included each month, what happens with unused hours, and how the relationship can be modified or ended.
The unused hours policy is often the most negotiated aspect of a retainer. Rolling unused hours forward benefits the client but creates liability for you. Forfeiting unused hours is cleaner but clients may resist. This template supports both approaches and a hybrid option where hours roll for one month only.
How to Use This Template
Set the Retainer Terms
Enter the monthly fee, number of included hours, overage hourly rate, and your policy on unused hours (rollover vs. forfeit).
Define Scope of Services
List the types of work covered by the retainer. Be specific about what falls within the retainer scope and what requires a separate project agreement.
Finalize Reporting and Renewal
Specify how you will report on hours used each month and set the auto-renewal terms with the opt-out notice period.
Frequently Asked Questions
Should unused retainer hours roll over to the next month?
This depends on your business model. Rolling hours over benefits the client and makes the retainer feel fair, but can create a backlog of owed work. A common compromise is allowing hours to roll for one month only. This template lets you choose your policy.
How do I handle work that exceeds the retainer hours?
Set a clear overage rate in the agreement (typically the same as or slightly higher than the effective retainer rate). Notify the client when they are approaching their hour limit and get approval before exceeding it. This template includes overage rate and notification provisions.
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