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Client Fee Agreement

Client Fee Agreement Template for England and Wales

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Client Fee Agreement

"I need a Client Fee Agreement for my consulting business to engage a new corporate client in the technology sector, including detailed service levels and milestone-based payments starting from March 2025."

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What is a Client Fee Agreement?

The Client Fee Agreement serves as the foundational document for professional service relationships under English and Welsh law. It is essential for businesses and professionals who charge fees for their services, providing clarity on scope, deliverables, and payment terms. This agreement type is particularly important in regulated industries where fee transparency is mandatory. The document typically includes detailed fee structures, service levels, termination rights, and compliance requirements, making it a crucial tool for risk management and client relationship governance.

What sections should be included in a Client Fee Agreement?

1. Parties: Identifies and defines the contracting parties including full legal names, addresses, and registration details where applicable

2. Background: Sets out context and purpose of the agreement, including any relevant history of the relationship

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Scope of Services: Details the services to be provided, including any limitations or exclusions

5. Fees and Payment Terms: Specifies fees, payment schedule, payment methods, and consequences of late payment

6. Duration: Sets out term of agreement and renewal provisions

7. Obligations of the Parties: Details responsibilities and duties of both service provider and client

8. Termination: Specifies circumstances and process for ending the agreement, including notice periods

What sections are optional to include in a Client Fee Agreement?

1. Regulatory Compliance: Details compliance with relevant regulatory frameworks and professional standards

2. Intellectual Property: Addresses ownership and usage rights of any work product or materials created during service provision

3. Service Levels: Defines specific performance metrics and service standards

4. Data Protection: Details data handling procedures and compliance with UK GDPR and Data Protection Act 2018

What schedules should be included in a Client Fee Agreement?

1. Fee Schedule: Detailed breakdown of fees, charges, and payment structure

2. Service Description: Detailed specification of services including methodology and deliverables

3. Key Personnel: List of key team members, their roles, and responsibilities in service delivery

4. Data Processing Terms: Detailed data protection obligations, procedures, and compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions































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Industries

Consumer Rights Act 2015: Primary legislation for consumer contracts, ensuring fairness of terms, transparency, and consumer protections. Particularly relevant if the client is a consumer rather than a business.

Supply of Goods and Services Act 1982: Sets out implied terms for service contracts and covers standards of service delivery in commercial relationships.

Unfair Contract Terms Act 1977: Regulates exclusion and limitation clauses in contracts to ensure terms are reasonable and fair for all parties.

Financial Services and Markets Act 2000: Relevant for regulated financial services, specifying requirements for fee disclosure and client agreements in financial sector.

Data Protection Act 2018 and UK GDPR: Governs data handling, privacy requirements, and client information protection obligations in contractual relationships.

Money Laundering Regulations 2017: Sets requirements for client due diligence and anti-money laundering procedures where applicable to the service.

Professional Regulations: Includes specific regulatory requirements such as SRA regulations for solicitors, FCA regulations for financial services, and other relevant professional body requirements.

Late Payment of Commercial Debts (Interest) Act 1998: Governs payment terms and consequences of late payment in commercial contracts.

Equality Act 2010: Ensures non-discriminatory terms and practices in contractual agreements and service provision.

Electronic Communications Act 2000: Provides legal framework for electronic execution of contracts and electronic communications in contractual relationships.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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