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Client Fee Agreement

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CLIENT FEE AGREEMENT

THIS AGREEMENT (hereinafter the “Agreement”), made and entered into this day of by and between , an Illinois resident, as well as any business entity formed hereafter in which he is a principal, partner, director, officer or shareholder (hereinafter collectively the “CLIENT”), and (hereinafter the “ATTORNEY”),

WITNESSETH AS FOLLOWS:

WHEREAS, CLIENT wishes to engaged ATTORNEY to render advice and counsel in connection with obtaining a loan (hereinafter the "Loan"), construction of a building (hereinafter the "Building") and subsequent leasing of space therein to various tenants (hereinafter "Leasing"); and

WHEREAS, ATTORNEY wishes to accept such engagement; and

WHEREAS, the parties hereto seek to set forth their respective rights and responsibilities;

NOW THEREFORE, in consideration for the performance of the mutual covenants contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, IT IS AGREED by and between the parties as follows:

RETENTION OF ATTORNEY

The parties to this Agreement shall be affiliated as set forth below commencing from the date specified in the first paragraph above. Said affiliation shall continue until written notice is given by any of the parties to this Agreement that they wish to end their working relationship.

Not later than fifteen (15) days after such written notice, CLIENT shall pay ATTORNEY any and all sums due and owing at the date of the writing of said notice and ATTORNEY shall thereafter return to CLIENT upon request all work product produced for CLIENT.

CONSULTING ATTORNEY

With respect to the tasks contemplated by this Agreement, the consulting attorney shall be (hereinafter collectively the "Consulting Attorney"). The Consulting Attorney shall be available to the CLIENT for advice and counsel on the same basis as the ATTORNEY. All time spent by the CLIENT with or through the Consulting Attorney shall be encompassed by the terms hereof and shall not engender extra or additional charges except as herein set forth.

SCOPE OF WORK

Included Tasks

The Attorney will complete the tasks set forth on Exhibit "A" hereto (hereinafter the "Included Tasks") pursuant to the terms of this Agreement:

Extras

The Attorney will complete all other tasks for the Client, including but not limited to those listed below (hereinafter collectively the "Extras") for an extra and additional sum calculated at the rate of Dollars ($) per hour, plus costs, as set forth in this Agreement:

(a)

(b)

(c)

(d)

and

(e)

COMPENSATION

Tasks Undertaken Prior to Receipt of Loan Proceeds

Included Tasks undertaken by the ATTORNEY prior to the receipt of the Loan proceeds shall be compensated at the rate of Dollars ($) per hour, plus costs, as set forth in this Agreement, provided however, that the total fees charged by the ATTORNEY for the performance of the Included Tasks shall be capped at Dollars ($), exclusive of costs.

Tasks Undertaken Following Receipt of Loan Proceeds

Following the receipt of the Loan proceeds, the ATTORNEY shall receive a sum from the Client (or disbursed directly from the proceeds of the Loan at the Attorney's direction) equal to Dollars ($) less the sums paid to the ATTORNEY for fees incurred in the performance of Included Tasks and Extras performed to date.

Costs

Under any circumstances, ATTORNEY's Compensation shall also consist of full reimbursement for all reasonable Costs, including but not limited to: (a) postage on items sent to, or for the benefit of CLIENT, including any insurance purchased thereon; (b) Federal Express; (c) messenger services; (d) court costs such as filing fees and process servers; (e) copies of documents made at the rate of Ten Cents ($.10) per page; (f) facsimile transmissions on behalf of Client to third parties at the rate of One Dollar ($1.00) per page; and (g) costs of transportation such as train, air, sea or rental-vehicle required in ATTORNEY's judgment to perform tasks for CLIENT, along with all expenses incident thereto, including taxes, title, insurance, fuel and tolls.

BILLING AND PAYMENT

Advance Fee

Cash or Certified Funds

Prior to commencement of work by ATTORNEY, CLIENT shall deposit with ATTORNEY the sum of Dollars ($) in lawful currency of the United States or by Certified or Cashier's Funds. Said deposit of funds shall be a requirement for the validity hereof and, or the performance of any work hereunder specified.

CLIENT acknowledges that failure to deposit said fees prior to ATTORNEY's initiation of work would result in harm to ATTORNEY and agree to indemnify ATTORNEY for all fees and costs incurred in the collection of all compensation due and owing ATTORNEY, including all attorney's fees and court costs incurred therein.

Credit Card

In the alternative, the CLIENT shall provide the ATTORNEY with sufficient information by which to draw down on a CLIENT credit-card account and, furthermore, hereby authorizes all charges against that account consistent herewith at the ATTORNEY'S discretion.

Invoices

ATTORNEY shall enclose an invoice to CLIENT no less frequently than once per month (hereinafter the "Invoice"). Each Invoice shall inform the Client of the tasks performed by the ATTORNEY during the period covered by said Invoice, shall list the costs incurred during that period, and shall specify whether an amount is due from the CLIENT in payment thereof.

All sums specified as due on the Invoice shall be payable immediately, and in any case within fourteen (14) days of the enclosure thereof by the ATTORNEY.

Unpaid sums set forth on the Invoice shall accrue interest at the rate of two percent (2%) per month until said balance is paid.

HONESTY IN FACT

CLIENT shall at all times be honest in conduct with ATTORNEY and shall promptly and completely provide ATTORNEY with all oral and written information, documents, objects and other tangible things requested by ATTORNEY in the course of any representation or action undertaken on behalf of CLIENT. Furthermore, CLIENT shall not affirmatively misstate any material fact or fail to disclose any fact necessary to make any of CLIENT's statements to ATTORNEY not misleading. CLIENT hereby acknowledges that failure to comply with this paragraph shall cause immediate and irreparable harm to ATTORNEY and shall give rise to an immediate right on the part of ATTORNEY to withdraw from any and all representation undertaken and to seek all remedies against CLIENT available at law and equity, in addition to those provided hereunder.

ENTIRE AGREEMENT

This writing contains the entire agreement between the parties. No representations are made or reasonably relied upon by either party other than those expressly set forth herein. No term or condition of this Agreement can be changed, modified, deleted or varied except by subsequent written agreement between the parties hereto.

GOVERNING LAW

The validity, interpretation, construction and performance of this Agreement shall be controlled by and construed under the laws of the State of Illinois.

RIGHT TO INDEPENDENT REVIEW OF THIS FEE AGREEMENT

ATTORNEY HAS INFORMED THE UNDERSIGNED THAT THE UNDERSIGNED HAS THE RIGHT TO SEEK INDEPENDENT LEGAL REVIEW OF THIS FEE AGREEMENT. THE UNDERSIGNED HAS READ THIS PARAGRAPH AND UNDERSTANDS THAT THE SIGNING OF THIS AGREEMENT SHALL BIND THE SIGNATORIES TO THE TERMS AND CONDITIONS HEREOF.

IN WITNESS WHEREOF, the parties have agreed and signed on the day and year first above written.

CLIENT

ATTORNEY

BY

BY

EXHIBIT "A"
INCLUDED TASKS

Enter text

What a Client Fee Agreement Covers

A Client Fee Agreement is a written contract between a service provider and a client that defines the fees, billing schedule, scope of services, payment terms, and dispute procedures. It sets expectations about rates, retainers, expense reimbursement, invoicing cadence, late fees, and termination conditions. Well-drafted fee agreements reduce misunderstandings, support internal approval and accounting, and provide evidence for collections or audits. The document is typically signed by an authorized representative of each party and retained as a business record for compliance and tax purposes.

Why a Clear Fee Agreement Matters

A clear Client Fee Agreement protects both parties by documenting pricing, responsibilities, and remedies. It helps avoid billing disputes, clarifies tax treatment, supports collections or insurance claims, and provides a contractual basis for enforcing late fees or terminating services. For electronic execution, confirm the agreement meets ESIGN and UETA requirements to preserve enforceability across U.S. jurisdictions.

Why a Clear Fee Agreement Matters

Who Typically Prepares and Signs These Agreements

The agreement should be reviewed by finance and legal teams; signers must have authority to bind their organization.

  • Professional services firms and consultants who bill hourly, by project, or on retainer.
  • Legal and accounting practices that need written fee arrangements for client matter accounting.
  • Vendors and agencies that require advance payment terms, deposits, or milestone billing.

Principal Signatories

Client Representative

Typically a procurement manager, CFO, or authorized officer who has authority to approve budgets and sign contracts. This person must be identified by name, title, and, where required, corporate authority language to avoid signature disputes.

Service Provider

Usually an account director, partner, or authorized signatory who confirms service scope, acceptance criteria, and billing rates. Ensure the signer is listed with title and, for corporations, include a corporate resolution or signer authority confirmation when needed.

Core Sections to Include in the Client Fee Agreement

A professional Client Fee Agreement contains specific sections to manage expectations and reduce risk.

Scope of Work

Precise description of services, deliverables, and exclusions so billing is tied to objective milestones and avoids scope creep or ambiguous invoicing disputes.

Fees & Rates

Flat fees, hourly rates, per-unit charges, or retainers with explicit rate schedules, escalation clauses, and conditions for reimbursable expenses.

Billing & Payment

Invoicing cadence, accepted payment methods, payment due date, late fee calculation, and interest on overdue balances.

Term & Termination

Contract duration, renewal terms, termination for convenience or breach, and obligations on termination including final invoicing.

Dispute Resolution

Procedures for raising disputes, informal negotiation, mediation or arbitration clauses, and choice of governing law and venue.

Confidentiality & IP

Ownership of deliverables, confidentiality obligations, and any license-back or IP assignment provisions tied to fee schedules.

Essential Compliance and Security Items

Encryption: TLS 1.2/1.3 in transit
Data at Rest: AES-256 encryption at rest
Audit Trail: Time-stamped signature logs
HIPAA BAA: Execute BAA when PHI is involved
Authentication: Email, SMS, or advanced methods
Retention: Policy for secure recordkeeping

Step-by-Step: Completing the Agreement

Follow these sequential steps to prepare, review, and finalize a Client Fee Agreement for signature.

  • 01
    Draft: Populate scope, fees, and payment terms.
  • 02
    Review: Legal and finance verify terms and tax treatment.
  • 03
    Authorize: Ensure signers have authority and signatory details.
  • 04
    Execute: Obtain signatures and retain executed copy.

Configuring an Electronic Signing Workflow

Set up routing, authentication, and notifications to match your approval process and compliance needs.

Field Configuration
Routing Order Sequential or parallel signer order
Authentication Email link, SMS code, or KBA
Reminders Auto reminders frequency and expiry
Attachments Required exhibits or supporting files

Where to Send or File the Executed Agreement

Decide destination and distribution to support accounting, client records, and legal holds after execution.

  • Client Records: Send signed copy to client contact for their files.
  • Accounts Payable: Route final invoice and signed agreement to AP for payment processing.
  • Legal Archive: Store executed original or PDF in legal contract repository.
  • Accounting System: Attach signed agreement to ERP or billing software.

Digital Signing and File Format Requirements

Maintain a tamper-evident copy and an audit trail to support enforceability and internal audits.

  • File Types: PDF, DOCX accepted
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Authentication: Email, SMS, or SSO available

Timelines and Processing Expectations

Identify and communicate key deadlines so invoicing and collections proceed without delay.

Effective Date:

The date services begin and billing accrues.

Invoice Frequency:

Monthly, milestone-based, or upon completion as stated.

Payment Due:

Number of days (e.g., Net 30) after invoice date.

Late Fee Grace:

Grace period and late fee rate, if any.

Dispute Window:

Time allotted to raise invoice disputes (commonly 15–30 days).

Common Mistakes to Avoid

  • Leaving scope vague and billing terms unspecified, which leads to frequent client disputes and retroactive negotiations.
  • Failing to identify authorized signers, resulting in signature challenges and delayed enforceability or collection actions.
  • Omitting governing law or venue clauses, creating uncertainty if a dispute requires formal resolution across state lines.
  • Neglecting to clarify expense reimbursement, taxes, or third-party costs, which triggers surprise charges and client pushback.

Consequences of an Incomplete or Incorrect Agreement

Late Payment: Interest accrual or late fee
Collection Costs: Debtor may bear recovery expenses
Tax Exposure: Misreported income or withholding
Enforceability Risk: Signature disputes or voided terms
Regulatory Penalty: Industry fines where applicable
Reputational Harm: Client relations and renewal impact

Example Scenarios Using Electronic Agreements

Real organizations use eSignatures and digital workflows to finalize client agreements more quickly and reliably.

Optica Ventures LLC

A mid-size investment services firm needed a simple signing flow to close client agreements remotely.

  • They prioritized ease of use for clients and staff.
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

Martin Properties

A regional property manager required mobile execution for routine client documents and fee addenda.

  • Mobile signing reduced in-person delays during on-site closings.
  • "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Practical Tips for Accurate Completion

Implement these practices to reduce disputes and accelerate collections.

Use Clear Definitions
Define billing terms, deliverables, and acceptance criteria in plain language so both parties measure performance the same way.
Require Authorized Signers
Verify signer authority before execution and maintain a record of delegation or corporate resolutions for corporate signatories.
Preserve Audit Trails
Keep timestamped copies, IP logs, and signer authentication evidence to support enforceability under ESIGN and UETA.
Link Invoices to Agreement
Reference invoice numbering, agreed rates, and milestone descriptions so AP teams can match payments without delay.

eSignature Vendor Pricing Comparison Relevant to Fee Agreements

Compare starting price and select capability criteria relevant to signing and storing Client Fee Agreements. Pricing shown is plan-level starting cost or representative vendor price.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About Client Fee Agreements

Answers to common legal, signing, and recordkeeping questions to help finalize and enforce a Client Fee Agreement.


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