Working with clients can be tough sometimes. You agreed to build the WordPress site with only Elementor, but they thought you’d add other fancy plugins and widgets. This is usually because they don’t know the specific scope of services agreed to or that they have to pay for some plugins and widgets.
Also, the more plugins and widgets, the more load on server resources, which can affect website load times.
All these issues can be avoided or, at least, reduced if you have a solid retainer agreement. In this short article, I'll explain what a retainer is, why you should write one for each client, and how to create it.
What is a Web Development Retainer Agreement?
A web development retainer agreement is a formal contract between a web developer (freelancer or agency) and their client. It helps you outline their responsibilities and expectations towards a project to clarify the exact services you’ll offer and the payment terms attached to those services.
Unlike project-based agreements, retainer agreements ensure you are paid recurrently (monthly, quarterly, or by milestone) for your services. In other words, a retainer agreement is a sign of commitment to a client’s work in exchange for financial remuneration.
Why Do You Need a Web Development Retainer Agreement?
You need a retainer agreement to achieve the following:
- Define the scope of your services. Depending on the stage the client is, there is often a lot to do for a client. This could be an initial website setup, technical SEO optimization, feature development, or any other needs.
A retainer agreement outlines these services to your clients to help them understand what you'll offer and what you won't be responsible for.
- Prevent scope creep. Clients can easily expand the scope you’ve initially set if you don’t describe the services you’ll offer explicitly from the get-go.
A client may expect their website to have monthly/quarterly backend updates for free as part of your services— a retainer agreement ensures you get paid for those constant updates (since they were not part of the initial agreement).
To prevent the chances of this happening, add a statement that you’ll bill for extra services that aren’t part of the agreement should the need arise. This way, the client will know that anything aside from the scope of services you’ve outlined will be separately billed for.
To do this, you can either write another contract for the one-off task or use ManyRequests’ add-on service service feature. This feature allows you to write the details about the service you’ll offer and attach the pricing structure (hourly, per project) to it. If they consent, they’ll activate the service, and you’ll be notified immediately.
- Improve your professional relationship with your clients. A retainer agreement also clarifies what you expect from your client to make your work easier. This includes prompt feedback, detailed briefs about their needs, and prompt communication. These should be included in the contract so everyone knows their responsibilities and can maintain a professional relationship without dispute.
- Provide financial stability. A retainer agreement ensures that you receive regular payments for your skills and services to the client.
Disadvantages of Not Using a Consulting Retainer Agreement
One of the most important reasons for an agreement is to gain alignment with your client. Without a contract, one of these will happen:
- Clients may not fully understand the scope of your services. They may expect you to provide more services than you normally would because it's in your area of expertise.
- You may experience inconsistent income because clients may not pay regularly (as agreed).
- When there is no written agreement to support your claims, you may be vulnerable during disputes over payments, deliverables, and responsibilities.
Key Components of a Web Development Retainer Agreement
Creating a web development retainer is important to set the terms for your professional engagements. These are key components you should include in your agreement:
- Parties Involved: Write the names and contact details of both parties—you and your client. Write the role of each party (you as a service provider and your client as the business) at the top of your branded letterhead page.
- Scope of Services: Write the exact web development services you’ll offer so they know what to expect. Avoid ambiguity to communicate expectations clearly.
For example, write that “The Service Provider will provide monthly security updates for the client’s retail website to improve website performance and protect user details” instead of “The Service Provider will provide web development services to the client.” The former clarifies your service offerings, while the latter could be translated into anything.
- Payment Terms: Write your preferred payment structure (monthly, quarterly, or set milestones). You should also add penalties for late payment, payment delays, or refusal to release payment after your work is done. For example, you can add a $25 increment for every delayed week.
- Deliverables and Timelines: Write down each deliverable for your services and when you’ll turn them in. This will help the client understand the deadlines you’re setting for yourself and manage their expectations.
For example, if you offer a site-wide SEO audit, specify how long it will take you to crawl the pages and identify unindexed pages, broken links, and other issues with their technical SEO.
- Duration and Termination Clause: Write a clause on the duration of the contract and conditions for renewal or termination. Add that there should be a 30-day notice for termination to allow both parties to wrap up ongoing projects.
- Client's Responsibilities: Write down your client's responsibilities for the project. This should include any obligations that will make your work easier. Add that the failure to carry out their responsibilities can be considered a breach of contract especially when it affects the project.
- Confidentiality and Non-disclosure Agreement: You’ll have access to sensitive information like the client's login credentials, website data, perhaps customer data (especially on traffic sources, referrals, etc.), and other performance reports. This information may help their direct competitors who want to market to similar audiences.
Add a clause to state that you’ll keep the information confidential to reassure clients that they can trust you.
- Dispute Resolution: Write a method for resolving disputes. It could be mediation, arbitration, or compromise. This can prevent costly legal battles in case of disagreement.
- Signatures and Date: Create space at the end of the page for you and your client to sign and date the agreement to make it legally binding.
Tips and Best Practices for Creating a Web Development Retainer Agreement
Here are some tips for creating an effective retainer agreement:
- Make sure your payment terms are clear.
- Be specific about the services you provide.
- Let the client know how often they should expect updates and the communication channels they prefer—it could be Slack, email, or Zoom.
- Review your agreement regularly, as services and pricing may change over time.
- Run your agreement through a lawyer to review it and ensure it protects your business interests.
- Add a clause that you can offer add-on services for extra services that clients may need. In the clause, explain what add-on services are and how they will be billed.
How to Use Our Web Development Retainer Agreement Template
Our free retainer agreement template is designed to save you time without compromising on a legally binding contract. Here's how to use and customize it:
- Edit the text to include your name, address, and other details you should fill in.
- Add your brand elements (name & logo) and format the font and colors.
- Add the specific services you’ll offer to clients, as I have explained.
- Review it thoroughly before sending it to a client.
Wrap-Up
A web development retainer agreement protects your business interests. It ensures that you and your clients are aligned on the services you’ll provide and that you can rely on a predictable income flow.
You can join the likes of Maximilian Fleitmann, Co-Founder of Magic Design, who says ManyRequests “handles our customer service workflows from top to bottom and is fundamental to our daily operations.”
Sign up for a free 14-day trial today (no credit card required) to see how ManyRequests simplifies business operations. If you need help using any feature, visit our help center.