Practice Management

Arbitrations, trials and deals: Invoice some hourly work promptly every two weeks.

By Dan Hull

Billing twice a month keeps the client attuned in real-time to the actual economic demands of the project--and helps the client plan.

Real time billing: invoice the client promptly twice a month. Like everyone else, we expect the "future of law" to include different billing alternatives. However, by that we mean the following: billing the same client different ways depending on the difficulty and intensity of the work.

Generally, we see flat fees for "commodity" work. And we believe hourly rates will continue to dominate for complex and novel projects--particularly where the relationships are longstanding and solid between in-house departments and outside law firms.

Case-by-case judgments about "value"--not hours, flat fees, or hybrids--will drive most engagements.

One idea comes from our Pittsburgh partner Julie McGuire, who does transactional and corporate tax work globally, and it seems to work especially well for intense or "fast-moving" projects--and when you are billing by the hour. Julie's done this successfully for transactional work, and some arbitrations, for years.

Full post as published by What About Clients? on April 09, 2010 (boomark / email).