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In short
A retainer agreement should name the parties, the type of retainer (hours, deliverables or access), the monthly scope, the fee and billing date, payment terms, what happens to unused time, how extra work is quoted and billed, response times, the term and renewal, how either side can end it, ownership, confidentiality and signatures. This page is a plain-language starting point, not legal advice.
Pick the type of retainer first
Most retainer disputes come from a vague answer to “what does the monthly fee buy?”. Choose one model and write it down:
- Hours retainer: a fixed block of hours each month, such as 20 hours for $2,000, with an hourly rate for extra time
- Deliverables retainer: a set output each month, such as four blog posts and one newsletter
- Access (advisory) retainer: availability for advice and calls within agreed limits, without a fixed hour count
- Prepaid retainer: the client pays a deposit that you draw down against invoices (often used by consultants and law firms)
Retainer agreement template: the clauses to include
Copy these headings into your agreement and fill in each one in plain language:
- Parties and effective date: your business, the client, and when the retainer starts
- Services and monthly scope: the hours, deliverables or access included, and what is not included
- Fee and billing: the monthly amount, the billing date (for example the 1st of each month, in advance) and the currency
- Payment terms: due date, accepted payment methods and any late fee allowed where you work
- Unused time: whether unused hours expire, roll over for one month, or roll over up to a cap
- Overage and extra work: the rate for time beyond the retainer, and whether it needs written approval first
- Response times and availability: working hours, how fast you reply, and how urgent requests are handled
- Term, renewal and notice: minimum term, automatic monthly renewal, and the notice either side gives to end it (often 30 days)
- Ownership and portfolio use: who owns finished work once paid, and whether you may show it
- Confidentiality, liability and signatures, with the date each side signs
Example wording for the key clauses
Fee: “Client pays a monthly retainer of $2,000, invoiced on the 1st of each month and due within 7 days.” Scope: “The retainer covers up to 20 hours of design and development support per month.” Unused time: “Unused hours roll over to the next month only, up to 10 hours.” Overage: “Work beyond 20 hours is billed at $110 per hour and needs written approval first.” Ending: “Either party may end this agreement with 30 days’ written notice.” Adjust the numbers and wording to your work.
How to price and bill a retainer
Price the retainer from the work you expect, not a guess: estimate the monthly hours, multiply by your rate, then decide whether to offer a small discount for the commitment. Bill in advance so the client pays before the month’s work starts, and track the hours or deliverables used so each renewal conversation is based on facts. In Workspace369, recurring invoices bill the retainer automatically each month, and time tracking on the client record shows how much of it has been used.
2027 retainer proposal: what to put in the renewal
A renewal is easier to agree when it arrives as a short proposal, not a new contract from scratch. Send it in December so the client can approve it before the first 2027 invoice. Use this outline:
- Scope recap: what the retainer covered this year, in the client’s terms (for example, up to 20 hours of design support a month)
- Results: what the work delivered, taken from your own records, such as projects shipped and hours used each month
- 2027 scope: what stays, what changes and what is no longer included
- Rate change: the new monthly fee, the date it starts and the reason, stated plainly (sample figures: $2,000 to $2,200 a month from January 1, 2027)
- Term: the minimum term, renewal and notice period for 2027, matching the clauses in your agreement
- How to sign: one next step with a date, such as approving and signing the proposal online by December 15
How to renew a retainer in December
Start early in the month, so the decision doesn’t land in the holiday week:
- First week: pull this year’s hours or deliverables from your time entries and invoices
- Second week: send the 2027 retainer proposal and ask for approval by a set date
- If the client asks for changes: revise the proposal instead of agreeing changes by email, so the signed version is the one you bill from
- Once it is signed: change the recurring invoice to the new amount and start date, so January bills at the new rate
In Workspace369, clients approve and sign proposals online, a deposit can be taken on acceptance, an accepted proposal converts to an invoice, and recurring invoices with card autopay bill the new rate each month. All of it is on every plan.
Read next: How to write a proposal, Proposals in Workspace369
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Keep the agreement with the client record
A retainer is a long relationship, so the agreement, the monthly invoices, the hours used and the change requests should live together. Workspace369 keeps contracts sent for e-signature, recurring invoices, time entries and messages on the same client record, so renewals and scope questions start from the same source.
Common questions
What is a retainer agreement?
A retainer agreement is a contract in which a client pays a regular fee, usually monthly, to reserve a freelancer’s or consultant’s time, a set of deliverables, or ongoing access to their advice. It sets out the scope, fee, payment terms, rules for unused time and extra work, and how either side can end it.
Should unused retainer hours roll over?
It is your choice, but write it down. Many freelancers let unused hours expire each month, or roll them over for one month only up to a cap. Unlimited rollover can build a large backlog of hours the client expects later, so set a limit.
How much notice should a retainer agreement require?
Thirty days is common for monthly retainers, often after a minimum term of three months. Choose a notice period that gives you time to replace the income and the client time to hand work over.
Is a retainer fee refundable?
It depends on the agreement and on the law where you work. A fee paid for reserved availability is often treated differently from a prepaid deposit drawn down against work. State clearly in the agreement whether any part is refundable, and check the rules with a lawyer.
Is this retainer agreement template legal advice?
No. It is a plain-language starting point. Laws differ by state and country, so have a qualified lawyer review your agreement before you rely on it.
