For those organisations that can predict their scope of work requirements, a much better version of the Retained Resources links the number of resources to specific outputs or deliverables. The fee is calculated the same as the Top Down approach but now the total retainer and agency resources are linked to the delivery of the define scope of work.
- This links the agency resources to the tasks or projects to be delivered.
- The cost of the resources is calculated using an agreed overhead and profit multiplier.
- The resultant annual fee is often paid monthly as a retainer.
- The actual agency resources used can be compared to the allowance in the retainer calculations to measure efficient of the agency relationship.
- If the scope of work changes then the agency resources and therefore the retainer can be recalculated to accommodate the changes.
- This can be part of a hybrid model covering some agency function only. E.g. Retainer resource to approved concept.