Costs updates letter—fixed fee and client paying privately
Costs updates letter—fixed fee and client paying privately

The following Practice Compliance precedent provides comprehensive and up to date legal information covering:

  • Costs updates letter—fixed fee and client paying privately

We have reached a stage in your matter where it is appropriate for me to update you on costs.

How costs are calculated

It would probably be helpful for me to remind you that there are three main elements to the legal costs of any matter:

  1. our charges

  2. expenses we must pay out of your behalf—sometimes called disbursements

  3. costs that you may have to pay another party

Each of these elements is explained below.

Our charges

[We previously agreed to charge a fixed price of £[insert price excluding VAT] for [state what work the fixed price relates to]. At this stage, we do not expect to do any work outside the terms of this fixed price. We will notify you if the position changes; if it does, we will agree with you how the additional work will be charged.

OR

We previously agreed to charge a fixed price of £[insert price excluding VAT] for [state what work the fixed price related to] and we agreed to notify you if we expected to have do any work outside the terms of this fixed price. It now appears that we will have to do the following work outside of the terms of the fixed price: [describe additional work]. We have therefore [agreed OR propose] to revise our fixed price to £[x] excluding VAT and we will assume that you have agreed this variation if

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