Alternative Fee Arrangements
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.
Fareya Azfar has billing models that virtually eradicate the hourly fees. We have methodically structured alternative fee arrangements which value speed not time spent, and creativity as much as productivity.
Early Case Assessments
It is important for our firm to provide cost certainty to its clients. We provide such certainty through a fixed or capped arrangement which aligns legal fees to stages or outcomes achieved.
Depending on the complexity of the case, the amount of monies at stake, and your own unique circumstances, the firm may recommend clients to conduct an early case assessment, before significant sums of monies are spent pursuing or defending a legal action.
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.
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.
Scope based fixed fee
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.
Determining that magic number involves a time-intensive scoping process. The benefit of this process is that detailed scoping creates a deep understanding of the client’s needs and deepens the client relationship.
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 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.