Alternative fee arrangements are increasing in popularity, and this is because – on instinct – they represent something that is surely incontrovertibly good: a hard ceiling on costs. But we feel they can represent a false economy.

Experienced in-house practitioners will be familiar with one common scenario. As one GC told us recently: “It’s very obvious when the other side you’re working with is on a capped fee transaction, because the intensity and the volume of work disappears overnight when they hit the cap.”…