Speed may come at the expense of quality. If the firm resolves the matter more quickly than expected, your company will end up paying more than if you had been billed at an hourly rate. Save your attention for more important business matters. Since you’ll know exactly how much you’re paying ahead of time, you’ll save a lot of time and energy by not haggling down unexpected attorney fees that could crop up on an hourly model. If your negotiated price is lower than it would have cost at an hourly rate, you’ll end up saving money.įewer fee disputes. Such strategies can include systems, delegation or technology that can all benefit you as the client.Ĭost savings. The only incentive is to deliver the promised service (whether it’s a document or a result) in a shorter period of time to take advantage of the margin. The traditional billable hour creates the perverse incentive for attorneys to work slowly (which at many law firms is compounded by the associate bonus structure, also often based on the number of hours billed). A flat-fee lawyer can correct this misalignment of incentives your legal service provider is now best served by coming up with more efficient strategies for handling the project. This simplifies your budgeting and creates certainty, avoiding the risk of a huge, unanticipated bill landing on your desk. You’ll know upfront what the entire project will cost – no surprises. When you’re a general counsel paying close attention to your company’s bottom line, one of the most popular fee options is flat-fee legal services.Īs you can imagine, engaging a flat-fee lawyer has its pros and cons: In recent years, law firm clients have become more sensitive to the high prices of legal services and are demanding alternatives to the traditional billable hour.
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