Hourly Engagement Letter Template

An engagement letter is where a client learns exactly what you'll do, what you won't, and how they'll be billed. This template covers the scope of the representation, who will work on the matter and their rates, billing in tenths of an hour, costs, an advance deposit held in trust, and how the engagement ends.

  • 1. Scope of Our Work
  • 2. Who Will Work on Your Matter
  • 3. How We Bill
  • 4. Costs
  • 5. Advance Deposit
  • 6. No Guarantee of Outcome
  • 7. Your Responsibilities
  • 8. Conflicts of Interest
  • 9. Communication
  • 10. Ending the Engagement
  • 11. When the Matter Concludes
  • 12. Your File
  • 13. General
  • Signatures from both parties
Free, no account needed to start. Not legal advice.

Use it when a client hires your firm for a matter billed by the hour, once your conflict check is complete.

The full template

Words in brackets, like [Client Name], fill in automatically from your client's details when you use the template in Clientary.

In the editor, you can change any section or add your own. Once you send it, your client signs online from any device. Edit this template online

[Contract Date]

Dear [Client Primary Contact Name],

Thank you for choosing [Company Name] to represent [Client Name]. This letter sets out the terms of our engagement. Please read it carefully, and ask us about anything that isn't clear before you sign.

1. Scope of Our Work

We will represent [Client Name] in [describe the matter, for example: negotiating and documenting the lease of new office space at 200 Main Street].

Our work doesn't include other matters, such as litigation, tax advice, insurance coverage, or zoning and permits, unless we agree in writing to expand it. We represent [Client Name] only, not its owners, officers, or employees individually.

2. Who Will Work on Your Matter

A partner will be responsible for your matter, with an associate and a paralegal handling work they can do well at lower rates. Our current hourly rates are:

  • Partner: $350
  • Associate: $225
  • Paralegal: $125

We review our rates each January and will give you 30 days' written notice before any change applies to your matter.

3. How We Bill

  • Time is recorded in tenths of an hour and includes calls, meetings, emails, research, drafting, and negotiation.
  • Travel time is billed at half the hourly rate.
  • We send an itemized invoice each month showing the date, the person, the work, and the time for each entry. Invoices are due within 30 days.
  • If you have a question about an invoice, please raise it within 30 days and we'll review it with you.

4. Costs

Costs such as filing and recording fees, searches, couriers, and outside experts are billed at cost, without markup. We'll ask for your approval before incurring any single cost over $500.

5. Advance Deposit

We ask for an advance deposit of $5,000 before we begin work. The deposit is held in our client trust account, separate from the firm's own funds, and remains yours until it's applied to an invoice. We'll apply it to each invoice when issued, and ask you to bring it back to $5,000 within 15 days. Any unused balance is returned to you when the engagement ends.

6. No Guarantee of Outcome

We'll give you our best professional judgment about your matter. Any views we share about likely outcomes are opinions, not promises or guarantees.

7. Your Responsibilities

You agree to give us complete and accurate information, respond promptly to our requests, tell us about any changes that may affect the matter, and pay our invoices when due.

8. Conflicts of Interest

We have checked our records for conflicts of interest with the other parties you named and found none. If a conflict arises during the engagement, we'll tell you promptly and address it as our professional rules require.

9. Communication

We'll keep you informed of significant developments and respond to your messages within one business day, even if only to say when we'll have a full answer. We communicate by email unless you ask us to use another method.

10. Ending the Engagement

You may end our engagement at any time by written notice. We may withdraw for reasons our professional rules allow, including nonpayment, after giving you reasonable notice and with the court's permission where required. In either case, you'll pay for fees and costs incurred up to that date, and we'll help with an orderly transfer of the matter.

11. When the Matter Concludes

Our engagement ends when we complete the work described above and send our final invoice. After that, we have no continuing duty to advise you about later changes in the law or facts, unless you engage us again.

12. Your File

We'll return original documents to you at the end of the engagement. We keep the rest of the file for seven years after the matter ends, and may then destroy it without further notice. You may ask for a copy of your file at any time before then.

13. General

This letter is governed by the laws of [state]. If we disagree about a fee, we'll first try to resolve it together, and we'll tell you about any fee dispute program available to you. This letter is our entire agreement about this matter, and may only be changed in writing.

If these terms are acceptable, please sign below. We'll begin work once we receive the signed letter and the advance deposit.

Sincerely,

[Company Name]

How to use this template in Clientary

  1. Edit it online. Change any section or add your own. No account needed.
  2. Preview it as your client will see it. Fill in who it's for and pick a design.
  3. Start your free trial to send it. Confirm you'll have it reviewed, since templates aren't legal advice, and your contract is waiting in your new account with your client's details filled in.
  4. Send it to be signed. Your client reviews and signs online, and you can see when it's viewed and signed.

Learn more about contracts and e-signatures in Clientary.

Frequently asked questions

Why do lawyers bill in tenths of an hour?

A tenth is six minutes, small enough to record short calls and emails fairly while keeping time entries simple. Stating the increment in the engagement letter means the client knows how time is counted.

What is an advance deposit held in trust?

Money a client pays before the work is done. It stays the client's until earned, so it's usually kept in a client trust account separate from the firm's own funds and applied as invoices are issued. How trust funds must be handled depends on your state's rules, so check them before using this template.

Is this hourly engagement letter template free?

Yes. Read and copy the full text on this page, or edit it online and see it as your client will. When it's ready, start a free Clientary trial to send it or download it as a PDF.

Has a lawyer reviewed this template?

No. It's a general starting point written by Clientary, not legal advice, and it hasn't been reviewed by a lawyer for your situation or the laws where you and your client work. Have your own counsel review it before you use or sign it.

More templates for law firms

Proposal · Law firms

Legal Services Proposal Template

Use it when a business without in-house counsel asks how your firm would handle its day-to-day legal work, and what it would cost.

Contract · Law firms

Flat Fee Engagement Letter Template

Use it for a well-defined matter you handle for a set fee, such as forming a company, once your conflict check is complete.

Contract · Law firms

Limited Scope Engagement Letter Template

Use it when a client wants help with one part of a matter, such as reviewing a contract before signing, and will handle the rest themselves.

Invoice · Law firms

Legal Services Invoice Template

Use it each month for an hourly matter, or adapt it for a flat fee or limited scope engagement.

Estimate · Law firms

Legal Fee Estimate Template

Use it when a client asks what a transaction or matter is likely to cost before they engage you.