Flat-fee billing is simple. Instead of ordering legal services with little to no idea how many hours it will take to do the project, when you order services on a flat-fee basis, your lawyer will commit upfront to a set fee for the project. Generally the lawyer simply assesses how long the project will take and multiplies that number of hours by his hourly rate and, presto, there’s the flat fee. If it takes a little less time or a whole lot more time, you only pay the flat fee.
What is Flat-Fee Billing?
The simple solution of paying a fixed price for your legal services instead of an hourly rate, flat-fee billing guarantees that you won’t receive any unwelcome surprises once our work together ends.
Why Flat-Fee Billing?
For one, it allows you to make smarter purchasing decisions. In law, as in life, some things you have to do and some things you choose to do. Some legal tasks are necessary – your company absolutely must have them. Others are nice-to-haves and you need to weigh the cost of the service vs. the benefit to you right now. Flat-fee billing gives you certainty regarding cost, which makes it easier for you to decide whether to get something done or not.
Second, flat-fee billing allows you to budget better. We understand it’s frustrating to not know how big the legal bills are before they arrive. In a small or even medium-sized business, cash flow is critical and the way you manage cash flow is by budgeting. With flat-fee billing, you know what the bill is going to look like before it arrives. Lastly, flat-fee billing better ensures you and your lawyer are on the same page and avoids billing disputes later. In order to bill on a flat-fee basis, you and your lawyer need to spend more time upfront figuring out exactly what you need done. This is a positive. It avoids miscommunication and misunderstandings about what you really wanted. And, flat-fee billing forces your lawyer to dig in and really determine how to most efficiently deliver to you exactly what you need