Contract Clause Library
Expenses reimbursement clause
Sets which out-of-pocket costs the client will reimburse, and what approval or documentation is required first.
Agencies sometimes incur costs on a client's behalf — travel for an on-site workshop, a paid stock photo license, a specialized contractor. This clause defines which categories of expense are reimbursable, whether pre-approval is required above a threshold, and what documentation (receipts, itemized invoices) the client expects before paying them back.
Sample wording
Sample language (illustrative, not legal advice)
Client will reimburse Vendor for reasonable, pre-approved out-of-pocket expenses directly related to this engagement, including travel, third-party licensing fees, and specialized contractor costs, provided Vendor obtains Client's written approval in advance for any single expense exceeding $500 and submits itemized receipts within 30 days.
Red flags
- No pre-approval threshold at all, which invites disputes over surprise expenses on the invoice
- Reimbursement categories vague enough to fight about ("reasonable business expenses")
- No documentation requirement, making the reimbursement request hard to verify or dispute later
How MarginFlow reads it
MarginFlow extracts the pre-approval dollar threshold from this clause specifically, so a detected expense above that line without a matching approval email can be flagged before it becomes a disputed line item on an invoice.