RETAINER AGREEMENT
{{CLIENT_NAME}} and {{FREELANCER_BUSINESS}}
This template provides general information and is not legal advice. Laws and contractual requirements vary by jurisdiction. Have the agreement reviewed by a qualified adviser if the value of the arrangement warrants it.
1. Parties
- The Client
- {{CLIENT_NAME}}, {{CLIENT_ADDRESS}}
- The Contractor
- {{FREELANCER_BUSINESS}}, {{FREELANCER_ADDRESS}}
- Effective date
- {{EFFECTIVE_DATE}}
- Initial term
- {{INITIAL_TERM_MONTHS}} months
2. Services covered
The Contractor will provide the following services during each monthly period.
- {{SERVICE_1}}
- {{SERVICE_2}}
- {{SERVICE_3}}
Work not described above is outside this retainer and is quoted separately before it begins.
3. Retainer fee and included hours
- Monthly retainer
- {{MONTHLY_FEE}}
- Included hours per month
- {{INCLUDED_HOURS}}
- Hourly equivalent
- {{HOURLY_EQUIVALENT}}
- Overage rate
- {{OVERAGE_RATE}} per hour
- Minimum commitment
- {{MINIMUM_MONTHS}} months
- Monthly period
- Calendar month, from the 1st to the last day
The retainer reserves the included hours for the Client whether or not they are used. Time is recorded to the nearest {{ROUNDING_MINUTES}} minutes and a summary is provided with each invoice.
4. Unused hours
Choose one of the following and delete the other two
The right answer depends on whether the Client is buying output or availability. Keep only the option that matches this agreement — leaving all three in makes the clause meaningless.
Option A — Unused hours expire
Hours not used within a monthly period expire at the end of that period and do not carry forward. The retainer reserves capacity, and that capacity is held whether or not it is used.
Option B — Unused hours roll over, up to a cap
Up to {{ROLLOVER_CAP_HOURS}} unused hours carry forward into the following period. Rolled-over hours are used before that period’s included hours. Any balance above the cap expires.
Option C — Unused hours roll over for a limited time
Unused hours carry forward and remain available for {{ROLLOVER_DAYS}} days from the end of the period in which they arose, after which they expire. Rolled-over hours are used before the current period’s included hours.
5. Work beyond the included hours
Choose one of the following and delete the other two
This clause decides what happens at the moment the allowance runs out, which is the moment a retainer most often goes wrong.
Option A — Work stops when the allowance is used
When the included hours for a period are exhausted, the Contractor will notify the Client and pause further work until the next period begins or until additional hours are agreed in writing.
Option B — Work continues only with written approval
When the included hours are exhausted, the Contractor will notify the Client with an estimate of the additional hours required. Further work begins only once the Client approves it in writing, and is billed at the overage rate.
Option C — Additional hours are billed automatically
Hours beyond the included allowance are billed at the overage rate on the following invoice, up to a maximum of {{OVERAGE_CAP_HOURS}} hours per period. Beyond that cap, written approval is required.
Whichever option applies, the Contractor will tell the Client when usage reaches {{WARNING_PERCENT}} of the included hours, so the decision is taken before the allowance is spent rather than after.
Freshlance Template · version 1.0 · freshlance.app/templates/freelance-retainer-agreement-template