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A consulting agreement with a retainer involves an upfront payment by a client for consulting services, ensuring the consultant's availability. A retainer allows consultants to secure payment for a minimum number of hours and covers initial costs related to the new business relationship. The decision to charge a retainer varies based on the type of work and consultant preferences. Retainer agreements typically include a minimum deposit or preordered hours. This arrangement benefits consultants by providing guaranteed payment even if the relationship does not continue as planned. Understanding retainer agreements helps in drafting effective consulting contracts.
