Mistake
No hour cap
A retainer without an hour limit can consume your entire month for a single client. Always define the monthly hour allocation explicitly.
Free. No signup. Recurring monthly engagements structured right — fixed fee, included hours, rollover policy, and clean cancellation terms.
Free. No registration. No card. No catch.
What a retainer agreement is for
A retainer agreement establishes an ongoing monthly relationship between a service provider and a client. It defines the monthly fee, what is included, what happens to unused time, how scope changes are handled, and how either side exits the relationship.
Agencies, consultants, lawyers, accountants, PR firms, and any service provider who wants predictable recurring revenue in exchange for guaranteed monthly availability.
When a client needs ongoing support rather than a one-time project. When you want to reserve capacity for a client each month and need to be compensated for that availability.
Not ideal for one-off projects with a defined end date — use a project-based service agreement instead. Retainers work best when the client genuinely has ongoing, recurring needs.
What BizDraft asks you
Provider and client names, entity types, states.
Fixed monthly retainer amount and invoice date.
What activities and hours are covered by the monthly fee.
Hourly or project rate for work exceeding included scope.
Whether unused hours expire monthly or carry forward. If they carry forward, for how long.
Notice period to cancel, minimum commitment period, refund policy for prepaid months.
Governing state law and dispute resolution method.
What the AI generates
Plain-English, structured for recurring engagements. The clauses that protect ongoing relationships from turning into open-ended free work.
Fixed monthly fee, invoice date, payment due date, late fee, and auto-renewal terms for the engagement.
Specific services included, monthly hour allocation, response time commitments, and activities excluded from the retainer.
Pre-approved overage threshold, overage rate, approval process for work beyond the monthly scope, and monthly billing for extras.
Whether unused hours expire, carry over (and for how long), or convert to credit. Prevents ambiguity that leads to disputes.
Minimum term, notice period to cancel, what is owed on cancellation, and whether prepaid fees are refundable.
Ongoing confidentiality for the duration of the retainer and any post-engagement period. Work product ownership on payment.
Common mistakes
The most common reasons retainer relationships turn into resentment.
Mistake
A retainer without an hour limit can consume your entire month for a single client. Always define the monthly hour allocation explicitly.
Mistake
If the agreement is silent on rollover, a client can demand banked hours from six months ago. State the policy clearly — expire or carry forward, with a defined limit.
Mistake
Without a minimum term, clients can cancel month-to-month. If you've turned down other work to keep the retainer client, you need a minimum commitment period.
Mistake
"Ongoing support" is not a scope. Define exactly what activities are included so you can say no to out-of-scope requests without a fight.
Mistake
Long-term retainers without rate escalation clauses lock you into yesterday's price. Include an annual adjustment provision.
Example
"I run an SEO agency. Client wants monthly ongoing SEO support — $3,500/month, 20 hours included, $175/hr overage. Hours expire monthly, no rollover. 3-month minimum, 30-day cancellation notice after that. Colorado law."
A 10-section retainer agreement, Colorado-governed. $3,500/month invoiced on the 1st, net-15 with 1.5%/month late fee. 20 hours monthly, hours expire on the last day of each month. $175/hr overage billed monthly. 3-month minimum, 30-day notice to cancel thereafter.
Word (.docx) for editing in any tool. PDF for sending out as-is. Both formats, no watermark, no account needed.
When to ask a lawyer
BizDraft is a drafting tool. It is not a substitute for a lawyer who knows your specific situation. Reach for one when:
Attorney retainer agreements have specific ethics rules and trust accounting requirements that differ from standard service retainers. Use legal-specific forms.
Retainers over $10,000/month or with multi-year minimums warrant attorney review, particularly around termination rights and liability caps.
When the client is a large company with their own legal team, expect redlines and get support reviewing their changes to your standard terms.
FAQ
Both models exist. A "fee for availability" retainer pays the provider to reserve capacity regardless of how much work is actually used — unused hours don't roll over. An "advance payment" retainer is a deposit applied against actual hours worked. BizDraft asks which model you want and drafts accordingly.
You bill at the agreed overage rate — typically your hourly rate or a negotiated premium. The agreement should specify whether you need pre-approval before exceeding the included hours or whether you bill overages automatically.
Only if the agreement lets them. Include a minimum commitment period (typically 3–6 months) and a notice requirement (typically 30 days). This protects you from clients who sign and cancel as soon as the first deliverable is done.
It depends on your model. Rollover benefits the client but creates planning challenges for you. Most service retainers use a "use it or lose it" policy. If you offer rollover, cap it at one month's accumulation to limit exposure.
Yes. No paywall, no trial, no credit card. Read about the business model →
Free. Tailored. State-aware. Yours to keep.
Start your retainer agreement