Adopting a fixed-fee 'mind-set'; new approach
Article Abstract:
More law firms are using fixed-fee systems in response to clients' cost-consciousness and desire to know ahead of time how much legal services will cost. This replaces the traditional billing by the hour system. Firms implementing fixed-fee systems must have a method for applying fixed overhead costs to the direct costs incident to a service. Training time becomes part of overhead. Teamwork within the firm is essential and the attorney and client who determine ahead of time which risks in a deal are significant will save themselves research and document-drafting time.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
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Wary of premium prices, clients look for bargains
Article Abstract:
Increased customer cost consciousness is pushing law firms to use various ways of discounting their services. Hourly rates are not extinct, but other methods such as value billing, or services priced according to their value to a client, are on the rise. A comparison of the National Law Journal's 1992 billing survey with the survey for 1991 showed no consistent trend upward or downward. The 1992 billing rates of 20 of the 170 surveyed firms were the same as in 1991, while 14 firms increased associate fees and 12 firms decreased partner fees.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
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Coming to terms with new billing methods
Article Abstract:
Alternative law firm billing methods include the use of fixed fees, unconventional time-based fees and result-based fees. The term 'fixed fee' refers to any flat or maximum dollar fee predetermined by the kind and amount of legal service. Time-based fees use various kinds of discount billing or blended rates involving the same rate for work on a project by partners, associates and sometimes paralegals. Result-based fees can assign higher fees for positive results. A list of the 10 most common reasons legal bills are unpaid is given.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
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