General Savings
Millions of dollars
Several Millions of dollars
30% over historical costs
About 15%
Savings from Value-Based Fee
Structures
About 10-15%
30-40% by bundling and
concentrating work
10%
Fixed fee patent application work
has decreased costs by 40% over
the past seven years
Cut outside counsel costs
by almost 60% over past
four years [note: 66% of
arrangements use value-based
fee structures]
Reduced outside counsel spend
as a function of revenue by
25% over past 10+ years
37% savings in global trademark
portfolio fees over four years
10-20%
Savings from Other Value Practices
About 25%
About 80-90% on some matters due to
ediscovery practices
Bidding patent work saved 20%
Secondment arrangements yield 20-50%
savings
Bidding fixed fee in immigration/
outsourcing, saved more than 20%
Document review practices using staffing
agencies instead of outside counsel, and
litigation support practices, resulted in
more than 50% savings during the first
six months
TYPES OFVALUE-BASED FEE STRUCTURES
Responses received from the 17 law departments indicate that a broad range of value-based fee structures is being
implemented. While one GC noted that the law department believes that all fee structures the department uses are
value-based (including those based on the billable hour), most law departments described using multiple types of
value-based fee structures.
§;Types of Matters – Value-based fee structures are being used to handle a wide variety of work, including:
transactional, litigation, environmental litigation, mergers and acquisitions, labor, employment, patent
litigation, patent preparation and prosecution, immigration, corporate and securities, trademark, HIPAA
and privacy, consumer class actions, real estate, environmental, plaintiff litigation, recoveries, ERISA
benefits, research and development, compliance counseling, “trusted advisor” counseling and more.
§;Scope of Fee Arrangement – Arrangements can be for: phases of litigation or a project, an entire matter or
project, a portfolio or group of matters. For portfolios or groups of matters, scope may be set by defining a
number of cases or matters, a geographical area, a type of matter, etc.
§;Duration & Payment Terms – For portfolios of work or premier provider arrangements, a number of
leaders described having annual or multi-year arrangements with monthly payments.