- "At Dunsmuir Law, a variety of legal services and representation, including family law matters, are available on a Value Based or Fixed Fee basis..."
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Value Based Billing
The historical method for determining the value of a lawyer’s services has been to pay for his or her time spent working on the matter for the client, including telephone calls, letters, preparation of documents, and attendances at court, charged at the lawyer’s hourly rate. In a law firm setting, this can include a number of different individuals who may work on a particular client matter, including lawyers, articling law students, and paralegals, all with differing rates charged for their respective time.
Owing to growing dissatisfaction with this method of billing, some clients have insisted on new approaches to valuing legal services. One such approach is Value Based or Fixed Fee Billing.
In simplest terms, Value Based Billings has been described as: “… a nexus between the client’s perception of the value they have received and the fee they have been charged. In other words, the practitioner considers that they have been properly remunerated and the client considers that they have received advice and service at a price they consider to be fair. The concept need be no more complex than that.”
How this nexus is to be arrived at requires the balancing of a lawyer or law firm’s need to ensure a certain return on their investment of time working for clients while the client needs to know that they are getting value for the money based on their freedom of choice of the lawyer for their legal matter. There are numerous articles discussing the advantages and perceived disadvantages of Value Based Billing.
The perception that new approaches are necessary for the billing of legal services is, however, increasingly becoming recognized by the legal profession.
In the end, the approach requires little more than the client and lawyer defining a scope of work to be accomplished, and agreeing on the value that will be paid for that work, which is typically paid in advance at the outset of the client retaining and instructing the lawyer to act.
The advantages to both the lawyer and client are obvious: the lawyer receives immediate payment for the value of the services to be undertaken, and the client has the certainty of knowing the extent of their exposure for the expenses of their own legal representation.
At Dunsmuir Law, a variety of legal services and representation, including family law matters, are available on a Value Based or Fixed Fee basis. We offer a complimentary initial consultation to determine the appropriateness of a Fixed Fee or Value Based billing arrangement for your legal matter, and confirm the terms of such arrangement, including the exact amount of fees that will be charged, in writing at the outset of your retaining us to act for you.
Why not call or e-mail us today to see if this approach is right for you and your legal matter?
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