By entering into a retainer agreement with a client for supply of services
to that client, a supplier can establish an arrangement whereby, in return
for a retainer fee, the supplier guarantees to carry out work for the client
in each retainer period up to a stated maximum number of hours.
of services supplied under a retainer agreement will typically be
consultancy, media, IT, creative, marketing, advertising or other business
or professional services.
A range of new templates for use when setting up a retainer arrangement
with a new or existing client are now available. The four agreement
templates on our website cater for different types of fairly commonly
encountered retainer structures.
The subfolder includes a very useful Guidance Note about use of retainer
agreements. It explains the nature, purpose, and various other key aspects
of retainer arrangements, including how they differ from “call off” or
“framework” agreements. It also considers factors that suppliers need to
take into account when deciding whether to, and how to, set up a retainer
arrangement with any of their clients, including possible pricing
structures, and the benefits and drawbacks for a supplier or their client
of a retainer arrangement.
These new documents will save time and expense for a business if it wishes
to produce a contract for provision of services under a retainer
arrangement. Use of one of these new templates will also assist suppliers
of services to contract on terms which protect their legal position.
The contents of this Newsletter are for reference purposes only and do not constitute
legal advice. Independent legal advice should be sought in relation to any specific