Just earned my CUBA certification and working on my engagement agreement. I've read through the threads here about fee structures and contract clauses but I'm overwhelmed by all the provisions — tail clauses, work product protection, assignment provisions, termination fees, gross recovery definitions. Do I really need all of this for my first client? I feel like a 10-page agreement will scare off a small business owner.
Brand new — what should my first engagement agreement look like?
I felt the same way when I started. My advice: use the AAUBA template as your starting point and don't overthink it. For your first few clients a 2-3 page agreement covering the basics — scope, contingency rate, payment terms, confidentiality, and termination — is enough. You can add the more advanced provisions as your practice grows and you encounter the situations that require them. I added my tail provision after I lost a fee on an extended refund, my work product clause after a client shopped my findings. Each clause was added because I needed it.
Brenda gives practical wisdom. Start with the AAUBA template which covers the essential provisions. As you gain experience you'll learn which additional clauses you need based on real situations. The most important elements for your first agreement: clear contingency rate, definition of what constitutes a recovery, payment timing, and a simple confidentiality provision. Everything else can be added over time. Your first client cares about one thing — will this cost me anything if you don't find savings? Make that answer clearly 'no' and the rest is details.
Started with the AAUBA template plus a few extra clauses from this forum. Three pages total. First client signed without any pushback. Found $6,400 in sales tax exemptions on their Ameren Illinois account. Got paid within 2 weeks of the credit posting. The agreement worked perfectly for a first engagement. Will add more provisions as I need them.