ACC Value Challenge Resource Library - ACC Guide to Value-Based Fees

Type
Fixed Fee per
Deliverable
Fixed Fee Per
Matter
Situations in which matter
recurs in a defined and
predictable way so that the
client and firm can agree
on a reasonable fixed fee to
handle that matter, barring any
unforeseen developments.

Capped Fee Flat Fee per Period

Affixes an “all in” price for a distinct piece of work, encompassing all of the law firm’s ancillary preparation and effort.

;Pay X for a law firm to draft and argue a summary judgment motion;

;Pay Y per deposition taken;

;In the transactions context, pay Z to produce an initial draft of a license agreement.

Situations in which certain component pieces of work are distinct and measurable such that client and law firm can agree upon a workable fee schedule, even if the number of “units” of work may vary going forward.

Sets a fixed price for all legal work relating to a particular matter.

;Pay X to handle a particular type of commercial real estate transaction;

;Pay Y to handle the defense of a single-plaintiff employment litigation up to trial, with an additional fixed amount to try the case.

Commonly used to set a ceiling on what the client will pay the law firm in a particular matter, or for a particular piece of work.

Resembles a fixed fee, but with certain drawbacks (discussed in the “Assessing” section below.)

;Legal fees for this matter, in this calendar year, not to exceed X;

;Fees for drafting and arguing this appeal not to exceed Y;

;Fees to handle this transaction not to exceed Z.

Situations in which the client is most comfortable with the hourly rate billing model and favors greater predictability (by capping fees on the high end) as opposed to lowering fees (by sharing with the law firm a portion of savings generated under fixed fees).

Typically covers distinct categories of services during the course of a specified period.

;Monthly flat fee to cover advice and counsel requests on regulatory issues of a certain type;

;All-in “per diem” fee for trial representation for whole trial team;

;Monthly flat fee to handle administrative management during certain phases of litigation;

;Quarterly flat fee for handling all intellectual property litigation of a certain type or in a certain area;

;Quarterly flat fee for handling a certain volume of commercial agreements.

Situations in which distinct pieces of work need to be performed on a recurring basis, and the client wants to create an economic incentive for the law firm to staff and perform the work more efficiently (i.e. reducing its own cost to increase its margin).