Page 130 - Leaders in Legal Business - PDF - Final 2018
P. 130
Fee Type Definition
Fee (Retainer)
Non-Hourly Partial The only difference between an hourly versus non-hourly fee is that a
Contingent Fee specific set of payments are typically agreed upon based on agreed-upon
milestones or phases.
Non-Hourly With contingent fees, the firm assumes most of the risk but is usually
Contingent Fee eligible for a large reward upon success. There is an agreement that fees
are completely based on the recovery of funds, which is normally a
percentage of the amount recovered.
Non-Hourly How expenses are paid and who is responsible for them is part of the
Procedure Pricing negotiation.
(or Flat Fees) This is selling services like a product. There is a name of a service with an
assigned dollar amount, for example: Medium Plaintiff Deposition,
$XXXX
The typical mix of firms’ arrangements as seen today:
20% Standard Rate
60% Unique client arrangement (rate plus outside counsel guidelines)
20% Non-standard fee types
Best Practice
Data aggregation should be driven from a data engine within a configurable platform that
ensures long-term performance and knowledge tracking; this system would incorporate cost
allocation and margin calculation to aid more accurate pricing and budgeting modeling. It
would typically include:
o Flexible views of income basis from multiple angles
o Flexible cost allocation models, such as:
Direct:
Compensation/bonus decisions
Partner compensation
Other direct allocations – (administrative assistant, bus. dev., etc.)
Management reallocation
Overhead:
Distribution
Weighting
FTE
Margin calculations
o Unit cost information (specifically for pricing and budgeting)
o Simple reporting/analytics paired with targets
116
Fee (Retainer)
Non-Hourly Partial The only difference between an hourly versus non-hourly fee is that a
Contingent Fee specific set of payments are typically agreed upon based on agreed-upon
milestones or phases.
Non-Hourly With contingent fees, the firm assumes most of the risk but is usually
Contingent Fee eligible for a large reward upon success. There is an agreement that fees
are completely based on the recovery of funds, which is normally a
percentage of the amount recovered.
Non-Hourly How expenses are paid and who is responsible for them is part of the
Procedure Pricing negotiation.
(or Flat Fees) This is selling services like a product. There is a name of a service with an
assigned dollar amount, for example: Medium Plaintiff Deposition,
$XXXX
The typical mix of firms’ arrangements as seen today:
20% Standard Rate
60% Unique client arrangement (rate plus outside counsel guidelines)
20% Non-standard fee types
Best Practice
Data aggregation should be driven from a data engine within a configurable platform that
ensures long-term performance and knowledge tracking; this system would incorporate cost
allocation and margin calculation to aid more accurate pricing and budgeting modeling. It
would typically include:
o Flexible views of income basis from multiple angles
o Flexible cost allocation models, such as:
Direct:
Compensation/bonus decisions
Partner compensation
Other direct allocations – (administrative assistant, bus. dev., etc.)
Management reallocation
Overhead:
Distribution
Weighting
FTE
Margin calculations
o Unit cost information (specifically for pricing and budgeting)
o Simple reporting/analytics paired with targets
116
