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Billing probe reveals in-house resentment

One-sided What private practice lawyers worry about isn't being transparent: it’s the fact that clients want certainty on fees, but rarely provide it on scope. "Scope creep" is a real issue, and if a private practice lawyer tries to keep part of the agreed scope flexible, this is challenged. The law firm backs down, and the client says no more, based on its firm scope of work. If a new, commercially-driven issue arises (new information, a change in deal structure etc), the lawyer deals with it in consultation with the client. When it comes time to paying the bill, however, suddenly the fact that it is above the estimate is a problem. Neither does it help that firms are encouraged to bid low by clients who evaluate purely on headline figure quotes. If clients want a low quote, then the scope needs to be limited. If they want realistic "certainty", then all parties need to be open to higher estimates which build in a contingency for unforeseen surprises...

7-Oct-2007

6:19 pm