Updated June 2026

Free Retainer Agreement
Template

A complete retainer agreement for consultants and freelancers — monthly fee, hours included, overage billing, notice period and IP assignment. Covers ongoing service relationships from day one.

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  • Reviewed June 2026
  • Hours + overage billing included

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1 — Consultant

2 — Client

3 — Services

4 — Retainer Terms

5 — Term & Termination

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Retainer Agreement

Date: enter date above

1. Parties

Consultant: Consultant name

Client: Client name

2. Services

services description

3. Retainer Fee

Fee: USD ($) amount per month

Due: 1st of each month

4. Hours & Overage

Included: hrs / month

Overage rate: USD ($) /hr above cap

5–9. Standard Clauses

Term & renewal · Termination & notice · IP assignment · Confidentiality · Independent contractor

10. Governing Law

Governed by: governing jurisdiction.

Consultant

Signature

Print name: _______________

Title: _______________

Date: _________________

Client

Signature

Print name: _______________

Date: _________________

Template preview

Retainer Agreement Free to download

Parties

1. Agreement Parties

This Retainer Agreement ("Agreement") is entered into as of [Date] between [Consultant Full Name], [Business Name] ("Consultant"), and [Client Full Name], [Company Name] ("Client").

Services

2. Services

The Consultant agrees to provide the following services on an ongoing retainer basis:

[Describe the services in detail — e.g. "Monthly social media strategy and content calendar for Instagram and LinkedIn; monthly performance report; up to 3 hours of ad-hoc consultations per month"]

Services not listed above are outside the scope of this retainer and will be quoted separately. The Consultant will perform services at times reasonably agreed with the Client during normal business hours.

Retainer Fee & Payment

3. Retainer Fee and Payment

Retainer fee: [Currency + Amount] per [month / week / fortnight]

Payment due: [e.g. 1st of each month / every Monday / on the 1st and 15th]

The retainer fee is payable in advance at the start of each period. The retainer is non-refundable — it pays for the Consultant's reserved availability and capacity, not completed deliverables alone. The Consultant will invoice the Client at the start of each period.

Hours & Overage Billing

4. Hours Included and Overage Billing

Hours included: [Number] hours per [period]

Overage rate: [Currency + Rate] per hour for each hour above the cap

Unused hours expire at the end of each period and do not carry forward to the next. [Optional: "The Consultant will notify the Client when 80% of included hours have been used in a period, to allow the Client to manage scope or authorise additional hours."]

📄 Download the full template — includes term & renewal, termination & notice period, IP assignment, confidentiality and independent contractor clauses.

What's included in this template

Parties — consultant and client identification
Services scope — what is and is not covered
Retainer fee and payment schedule
Hours included per period and overage billing rate
Non-refundable retainer clause with rationale
Term, start date and automatic renewal
Termination and written notice period clause
Intellectual property — work product assigned to client on payment
Confidentiality clause, survives termination
Independent contractor status + governing law

How to use this template

Set your hours based on realistic capacity — not a ceiling you'll always hit

The retainer hours cap defines both the value the client receives and your overage trigger. Set it at the number of hours you can genuinely reserve each period. If you consistently go over, renegotiate the retainer upward rather than absorbing the difference. The overage rate should be at or above your standard hourly rate — working beyond the retainer cap is discretionary capacity, and it should be priced accordingly.

Define services specifically — scope creep starts with vague language

The most common retainer dispute is scope creep: the client believes a new task is covered, the consultant believes it is not. Prevent this by listing specific services clearly in clause 2, and including a short exclusions note ("Services not listed above are outside scope and will be quoted separately"). If the client asks for something not on the list, it is a separate conversation — not an assumption that the retainer covers it.

Use a 30-day notice period — it protects both sides

A 30-day written notice period is the standard for monthly retainers. It gives the client time to find a replacement and gives you time to wind down the engagement without a sudden income drop. For longer-running or higher-value retainers, 60 days is reasonable. Avoid notice periods under 14 days — they are difficult to enforce and leave both parties exposed. Specify that notice must be in writing (email is sufficient) to avoid disputes about when notice was given.

Get it signed before starting work — use Bonsai for e-signatures

Never start a retainer engagement on a verbal agreement or a "we'll sort the paperwork later" basis. The retainer fee is non-refundable, the IP assignment kicks in on delivery, and the notice period starts from the signed date — all of which require a signed contract before work begins. Use Bonsai to send, sign and collect your first retainer payment in one step.

Frequently asked questions

A retainer agreement is a contract between a client and a freelancer or consultant in which the client pays a recurring fee — typically monthly — in exchange for a set number of hours or a defined scope of ongoing services. Unlike a project contract that ends on delivery, a retainer creates an ongoing relationship: the consultant reserves time and availability for the client each period, and the client pays for that reserved capacity. Retainers are common in consulting, PR, marketing, legal work, and any relationship where a client needs regular access to specialist skills.
A retainer works by setting a recurring fee that the client pays in advance at the start of each period in exchange for reserved consultant availability. The agreement specifies how many hours are included, what services are covered, and the rate for hours above that cap. Unused hours typically expire at the end of each period and do not carry forward. The retainer auto-renews each period unless either party gives the agreed notice — commonly 30 days. This gives the client reliable access and the consultant predictable income.
A retainer agreement should include: parties and their details; a clear description of services in scope; the retainer fee and billing period; hours included and the overage billing rate; payment schedule; start date and auto-renewal terms; termination and notice period; intellectual property assignment (who owns deliverables); confidentiality obligations; and independent contractor status. All ten of these are covered in this template.
A retainer fee pays for the consultant's reserved availability, not just their completed output. The client pays whether or not they use all the hours — the consultant holds that capacity open and cannot sell it to others during that period. A monthly project contract typically ties payment to deliverables or hours actually worked. Retainers suit relationships where the client needs guaranteed access and the consultant needs predictable income; monthly project contracts suit deliverable-based or variable-scope work.
A retainer fee is typically set by multiplying your hourly rate by the number of hours reserved per period. Many consultants offer a small retainer discount (5–15%) in exchange for the guaranteed income and reduced admin of a recurring engagement. For example, a consultant billing $150/hr who reserves 20 hours per month might charge $2,700/month (a 10% retainer discount on $3,000). The fee should also reflect the opportunity cost of holding that capacity — if reserving those hours means turning down other work, price accordingly.
Generally, retainer fees are non-refundable because they pay for reserved availability, not just completed work. The consultant sets aside that capacity at the start of the period and cannot resell it if the client does not use all their hours. This is the standard position and should be stated explicitly in the contract. If the client wants flexibility — such as pausing the retainer or rolling over unused hours — these terms must be negotiated and written into the agreement before signing.
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