Beyond the Billable Hour: A Practical Guide to Alternative Fee Arrangements
The billable hour is inefficient and prone to abuse…and entrenched in the law firm business model and culture.
But change is underway.
As law firms face more competition, and with individuals looking for affordable options and corporations under pressure to reduce costs resulting in more work being handled by contract lawyers and in-house legal departments, clients are demanding predictable costs with efficient and transparent billing practices. In other words, they want alternative fee arrangements, and law firms must comply or lose the business.
In this practical guide, you’ll learn about the alternative billing models firms are using, such as fixed or flat fees, contingency and reverse contingency fees, value or success based fees, and popular hybrids or combination fees. These flexible fee arrangements may be per engagement, firm wide by client, or matter-specific and can help establish and nurture long-term relationships that is of optimal value to both the client and firm.