Most legal work is delivered matter by matter, which can make income unpredictable. Retainer arrangements, where a client engages you on an ongoing basis, offer something valuable: a continuing relationship and more predictable, recurring engagement. For the right clients and type of work, retainers can strengthen client relationships while adding stability to your practice. The key is to set up the arrangement clearly, define what it covers, and deliver consistently.
Quick answer
A retainer arrangement is an ongoing engagement where a client retains you for continuing legal services or availability, often over a defined period, rather than engaging you only for individual matters.
To set up a retainer well:
- Identify suitable clients and work, particularly clients with genuine ongoing legal needs.
- Define clearly what the retainer covers, including the services or availability provided, its scope, limits and what falls outside it.
- Agree clear terms, including the fee arrangement and duration, preferably in a written arrangement that complies with applicable rules.
- Deliver consistently and well, because a retainer is an ongoing professional relationship.
- Review and renew the arrangement appropriately as the client’s needs evolve.
Retainers can benefit both sides when they are well-suited and clearly defined. For the lawyer, they can provide more predictable, recurring engagement and income. For the client, they can provide ongoing and reliable access to legal services. The important thing is to choose suitable clients and work, define the arrangement clearly, deliver reliably, and keep the arrangement fair and compliant. Fees and retainer structures vary, so there are no universal figures or models that will suit every practice.
What a retainer is and why it helps
A retainer is an ongoing engagement in which a client retains you for continuing legal services or availability, rather than engaging you only on a matter-by-matter basis. It can help you by creating more predictable, recurring engagement and income compared with relying entirely on one-off matters, while giving the client an ongoing relationship and more reliable access to your services.
For clients with continuing legal needs, a retainer can be a natural arrangement for both sides. It gives the lawyer a clearer understanding of the client’s continuing needs and can add stability to the practice. See “How to Build Recurring Revenue in a Legal Practice”.
How to set one up
1. Identify suitable clients and work
Retainers suit clients with genuine ongoing legal needs where a continuing arrangement makes sense for both sides. Not every client or matter requires a retainer, so start by looking at the nature and frequency of the work involved.
2. Define what it covers
Clearly specify what the retainer includes, the services or availability provided, the scope and any limits, and what falls outside the arrangement. Also make clear how work outside the agreed scope will be handled. Clarity at this stage can prevent misunderstandings later.
3. Agree clear terms
Set out the fee arrangement, duration and other relevant terms in a clear, preferably written arrangement that complies with applicable professional rules and norms. See “Fee Models for Lawyers”.
4. Deliver consistently
A retainer is an ongoing relationship, so reliable, quality service is what sustains it. The client should understand what they can expect from the arrangement, and the lawyer should consistently deliver what has been agreed.
5. Review and renew
A client’s needs may change over time. Review the arrangement periodically and renew or adjust it appropriately so that the scope, terms and services continue to reflect the relationship.
Keep it clear and fair
The most important part of setting up a retainer is clarity. Both sides should understand what the retainer covers, the scope of services, the applicable terms and the fees, ideally through clear written documentation. Ambiguity about what is included can quickly create friction.
A well-defined and fair retainer benefits both sides, but the arrangement only works when it is supported by good service. Retainers are not simply about securing recurring work. They are about building a continuing professional relationship and delivering reliably throughout that relationship. Any retainer or fee arrangement should also comply with the applicable professional norms and rules.
YLCC ACTION STEP: Review your existing clients and identify those with genuine ongoing legal needs. For a suitable client, define the scope, services or availability, limits, terms and fees clearly in writing, ensure the arrangement complies with applicable rules, and focus on delivering reliable, quality service throughout the relationship.
If this is you
If your income is unpredictable: Retainers with suitable clients can add stability and recurring revenue. Look for clients whose legal needs are genuinely ongoing rather than trying to fit every client into a retainer model. See “How to Build Recurring Revenue in a Legal Practice”.
If you have had retainer disputes or confusion: Unclear scope is often where problems begin. Define exactly what is covered, what is excluded and how additional work will be handled, preferably in writing.
If you are unsure about the rules: Check the applicable professional norms and rules before finalising the arrangement. Retainer structures and fee arrangements should be clear, fair and compliant.
PLEASE DON’T DO THIS: Please don’t set up retainers with vague or undocumented scope and terms. Ambiguity about what is covered can lead to friction and disputes. Don’t adopt an arrangement without considering the applicable rules and norms, and don’t neglect the quality and reliability of service that sustains a continuing professional relationship. Keep the arrangement clear, fair and compliant, and deliver well.
FAQs
- What is a retainer arrangement? A retainer arrangement is an ongoing engagement where a client retains a lawyer for continuing legal services or availability, often over a defined period, rather than engaging the lawyer only for individual matters.
- How do I set up a retainer arrangement? Identify suitable clients and work, define what the retainer covers, agree clear terms and fees in a written arrangement, ensure compliance with applicable rules, deliver consistently and review the arrangement as needs evolve.
- Why do lawyers use retainers? Retainers can provide more predictable, recurring engagement and income for lawyers while giving clients ongoing and reliable access to legal services.
- What is most important in a retainer arrangement? Clarity about the scope, services, limits, terms and fees, together with reliable service and compliance with applicable professional rules.
- Do all clients suit retainers? No. Retainers are generally more suitable where a client has genuine ongoing legal needs and a continuing arrangement makes sense for both sides.
