Alternative Fee Arrangements

For us, it is imperative to provide cost certainty to our clients. We provide clients with greater cost certainty, through a fixed or capped arrangements or through one that aligns fees to precise stages or the outcomes achieved.



At Fareya Araoui we have partnered with our clients to develop risk-sharing solutions and alternative fee arrangements to help them address some of today’s most pressing business challenges. The different approaches make it possible for us to work in real partnership with our clients. We are always willing to discuss a variety of solutions and find a solution that works for you.

Annual Retainer

What is it?

We sign an annual retainer contract with you. The main benefits of this option are

How it benefits you?

We like to keep things simple. For a fixed annual fee you get almost unlimited advice and support.

We also help the client to manage its litigation risk and to identify developing trends and corporate issues more effectively.

Our support is comprehensive. We visit the client’s offices several times a year. We understand your business, your people, and your policies.

Fixed Fee

What is it?

A fixed fee contract is an alternative to the regular hourly rate used by lawyers. The cost stays the same regardless of the amount of time taken to perform the work.

We are moving towards a wider fixed fee culture and this can apply to commercial legal, either on a stage-by-stage basis or as a whole single instruction.

Fixed Fee is an agreed-upon amount that is fixed at the inception of the project. at a set price at each point of legal work. This gives you a certainty of legal costs that help you to budget your legal fees.

This model is best for smaller projects that have clearly outlined requirements. Some alternative fees can be higher than the alternative. However, in exchange for the potentially higher cost, the client gets certainty of expenditure (which is often worth paying for).



Phased, Budget-Based Billing

For large transactions or litigation, the legal works are divided into phases, and a fixed price or budget is set for each phase. 

value-based fee


Value pricing lets you our firm’s knowledge and experience to guide your business decisions.

What is it?

The first step on the path to value-based fee structures is, well, defining value.

This is an obvious point, but one still worth emphasizing. The fundamental shift: move away from “how many hours will it take” to “what is the value to be delivered.”

There are three types of value: economic, perceived, and strategic

How does it work?

Lawyers and clients must work together to articulate exactly what success and value mean to the client.

  • If the client values shorter resolution periods, the metric could be the time it takes to complete each step.
  • If the client values less unnecessary correspondence, the metric could be the number of daily or weekly e-mails from outside counsel.
  • If the client values more predictability in litigation costs, the metric could be billable hours or dollar amounts.


Task-Based Fee


What is it?

This structure is usually a fixed fee for a specific task and is often seen in patent or immigration law. Task-based billing is one tool our clients employ to understand and manage the amounts spent on legal services.

Tier or category-based ─

Some legal work can be divided into value tiers and often a fixed fee is assigned to each tier or category.

Scope-based –

For legal work that is project-based with specific deliverables or has a defined scope of work delivered consistently over a period of time, a fixed fee would be defined.

How does it work

A series of Phase, Task, and Activity codes are used to classify and quantify legal services performed or services to be performed by our firm.

Right people of the right task

You should not expect a paralegal to invoice any efforts to the “Analysis/ Strategy” phase code, nor should you expect a partner to invoice time to the “Document/File Management” phase code.