![]() ![]() This is often seen in the legal and consulting industries. A contingency fee allows a client to only make a payment for the services if the contingency is met. What is a Contingency Fee?Ī contingency fee is an amount of money that is only paid if certain parameters are met. No work may begin until the retainer has been paid in-full by the client. It is common in a retainer agreement for a clause to read: Step 4 – Get PaidĪfter the agreement has been signed, it’s time for the client to pay the retainer amount. Only the service provider and the client are legally required to sign the document. When the terms of the retainer agreement are agreed upon by all parties, it’s time to sign the agreement. ![]() Example: A client pays a retainer of 10 hours for accounting services every month.Example: A client hires an attorney and pays a retainer to get started on a case.Ī recurring payment used for an ongoing relationship between the client and the consultant.There are two types of retainer agreements:Ī one-time payment used as an advance payment for future services. The parties will negotiate the hourly rate, contingency, retainer amount, and terms of termination. The client and service provider will meet and discuss the full scope of the service. The retainer agreement acts as both an agreement for services and allows the service provider to collect pre-payment for future services. Setting up a retainer agreement begins with a client seeking the services of someone else in exchange for payment. This is common with companies that seek constant advice from accountants, attorneys, or other professionals whose services are needed on a continued basis. Monthly RetainerĪ monthly retainer, also known as “pay for access,” is when a client pays a repeated amount to a service provider in exchange for access to their services. ![]() A retainer acts as a non-refundable deposit for future service from an attorney, accountant, or other professional. ![]()
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