Fixed Fee Arrangement Definition
A Fixed Fee Arrangement is an alternative to the standard hourly rate used by solicitors with a fixed price for each stage of legal work. It is not dictated by the time spent. This gives certainty of legal cost enables you to budget for your lawyer’s fees.
Too often a solicitor is instructed on a general time cost basis and the client loses control or forgets that they are paying for every minute of the solicitor’s time, whether that is time spent reviewing huge volumes of documents, time spent on endless phone calls or in drafting large letters or complex documentation.
Time evaporates quite quickly in such circumstances and so it may be preferable for the client and his solicitor that a specific sum of money be agreed for a fixed block of work. This is what is meant by a fixed fee arrangement.
Fixed fee agreements are extremely useful for you as the client, as they give an element of certainty to what you are going to spend on legal costs. For the solicitor, they manage the client’s expectation but also limit what the solicitor has agreed to do for the client, which gives both certainty.
However it must be remembered at all times that a law firm, like any other business, have to make a profit from the resources allocated to the client’s work.
Accordingly, a fixed fee will have to be fixed at a rate at least comparable to what income would normally be received (on average across a portfolio of cases) for the same work and, to provide for risk, will normally be higher than the alternative, an estimated fee.
However, in exchange for the potentially higher cost, the client gets certainty of expenditure (which is often worth paying for). If you would like to read more about fixed fees please click here for more information.
At Francis Wilks & Jones we are extremely familiar with fixed fee models and can certainly work under such arrangements with you. We also have alternate funding models which may be more appropriate to your circumstances.
Please call any member of our commercial litigation team for your consultation now on 020 7841 0390. Alternatively e mail us with your enquiry and we will call you back at a time convenient to you.
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