Clients can be skeptical
of alternative billing arrangements when they do not understand how those arrangements will benefit them.
To accomplish this, partners must select which clients and practice areas to make available
for alternative billing arrangements and to invest their time to manage each practice area.
For our clients on the defense side, we have been a leader
in alternative billing arrangements and always maintain fair billing rates and invoices.
In our case, we use the resources external investors provide to invest in technology and adopt
alternative billing structures, such as flat fee billing.
I do think, however, that this reluctance to
embrace alternative billing will ease with the passage of time, and increasing client demands will accelerate this process.
Attorneys have been slow to
adopt alternative billing forms and the reason is pretty clear: you can not explain it easily to clients.
Because we are «lean and mean,» our hourly rates are well below those of attorneys with comparable experience, and we have the flexibility to
consider alternative billing arrangements.
Cost - cutting
alternative billing schemes are on the rise, and in some cases firms are even being forced to bid for corporate business.
In - house legal departments often
explore alternative billing arrangements, but they often fail to follow through, falling back instead on the traditional hourly billing model.
But they don't seem to be acquiring the tools that would give them that feedback on
whether alternative billing is actually good for them!
Are the associate layoffs and talk of
alternative billing really just a way for partners to justify keeping a larger piece of the dwindling profit - pie?
There has been a steady onslaught against the billable hour in recent years, not least of which is such as the demand by many clients
for alternative billing arrangements.
So there's no change in motivations, only in marketing, service delivery and
alternative billing structures for fixed fees, risk sharing and project management.
Even though litigation is slower to get on board the flat - fee billing train, it seems flat fees and
other alternative billing arrangements will eventually become the norm across all practice areas.
Your partner's responses to the following questions will offer valuable insight about the firm's willingness and ability to «accept and live with» one or more types
of alternative billing arrangements.
Flat fees have become nearly synonymous
with alternative billing, but they are not the only alternative to the billable hour.
So at the end of the day, what matters more to corporate clients — business goals, like saving money
through alternative billing... or personal relationships?
In this episode of New Solo, host Adriana Linares talks with Vandenack Weaver LLC founder Mary Vandenack about lawyers
using alternative billing models.
It lists a wide range of value - generating initiatives deployed in - house, covering everything
from alternative billing techniques to ways that law firms are being asked to enhance professional development and knowledge management in their clients» legal departments.
It is the firm's policy to work with our clients to develop rate structures and billing procedures that are mutually agreeable,
including alternative billing arrangements such as fixed or task - based fees, contingent fees and volume - based discounted fees.
But if you ask partners how much a specific filing costs, most have no idea, says Pamela H. Woldow, a consultant whose work
targets alternative billing and social media presence.