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).