Dealing with fee pressure—creative fees and fee negotiation
Produced in partnership with Robert Mowbray of Taylor Mowbray LLP

The following Practice Management practice note produced in partnership with Robert Mowbray of Taylor Mowbray LLP provides comprehensive and up to date legal information covering:

  • Dealing with fee pressure—creative fees and fee negotiation
  • Providing creative fee arrangements instead of greater discounts
  • Fee negotiation
  • Fee earner questionnaire
  • Price and service transparency

Dealing with fee pressure—creative fees and fee negotiation

This Practice Note provides an understanding of how to deal with the constant pressure from clients to discount fees. It discusses some creative fee arrangements and looks at how solicitors can learn to negotiate fees with more confidence.

Providing creative fee arrangements instead of greater discounts

Perhaps the most important thing is to understand what a creative fee arrangement is; it is certainly not a bigger discount. A creative fee is one that is better for the client and also better for the solicitor. If the arrangement is one-sided, such a discount is probably not sustainable in the long term. There has been considerable commentary in the legal press that clients do not like time-based fees as they can encourage inefficiency. While this is definitely true there are still certain types of matter where a client might choose a time-based fee as being appropriate and the most fair arrangement to both parties, eg where it is uncertain how much work will be required.

So, what are the genuinely creative fee arrangements that you could consider? Here are a few suggestions:

Fixed feesFor the client this provides certainty and for the solicitor it provides an opportunity to earn a higher level of profit than is achievable with hourly rates if the work can be done

Popular documents