Pros & cons of fixed fee vs hourly billing in the legal sector
The legal sector is experiencing a shift in how services are delivered as new pricing models are emerging in the market. Traditionally, hourly billing has been the standard for law firms. Clients are billed on an hourly basis for the length time a lawyer spends on a case.
However, in recent years, fixed fee billing has become more common. According to Bloomberg Law’s most recent Legal Operations & Technology Survey, 74% of the AmLaw 100 mentions ‘alternative fee arrangements on their website. With this pricing model, the lawyer and client agree the total cost up front and payments are typically spread out over the course of the case.
Both pricing models have their benefits and drawbacks for lawyers and clients and in this article, we look at each in more detail.
Read more...