Retainer Agreement Template for Professional Services Businesses (UK 2025)
Last updated: February 2025
Why Professional Services Businesses Need a Retainer Agreement
Professional services retainer agreements provide clients with priority access to regulated professionals for ongoing advisory needs, compliance monitoring, and strategic guidance. Common examples include retained solicitor arrangements for employment law, retained accountant relationships for ongoing tax advisory, and retained surveyor appointments for property portfolio management. The retainer must address the professional's regulatory obligations, PI insurance cover for ongoing advice, and the distinction between retainer services and separately scoped work.
Key Clauses for Professional Services
- Monthly advisory allocation and access arrangements
- Regulatory compliance and PI insurance confirmation
- Scope of retainer services versus separately commissioned work
- Priority access, response times, and emergency availability
Common Mistakes
- Not confirming that the professional's PI insurance adequately covers ongoing retainer advisory services
- Failing to establish clear boundaries between advice included in the retainer and work requiring separate engagement terms and fees
Template Sections
- Advisory allocation and access provisions
- Regulatory compliance and insurance confirmation
- Retainer scope versus separate engagement boundary
FAQ
How does a professional services retainer differ from a standard engagement?
A retainer provides ongoing access to professional expertise on an as-needed basis, typically at a discounted effective rate compared to ad hoc instructions. It usually includes priority response times, a named relationship partner, and proactive advisory updates on regulatory changes. A standard engagement is scoped for specific deliverables with a defined timeline and fee. The retainer agreement should clearly delineate where one ends and the other begins.
What regulatory considerations apply to professional services retainers?
The retainer must comply with the relevant regulatory body's engagement requirements. Solicitors must issue client care information and costs disclosures. Accountants must confirm engagement terms covering scope and liability. The retainer should also address how the professional manages conflicts of interest arising from their ongoing relationship with the client, particularly if they also act for potentially adverse parties.
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Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
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