LAW FIRMS SEE ALTERNATIVE FEE ARRANGEMENTS AS HERE TO STAY
“I don’t think the billable hour is dead, but I think it has company”
According to an article by Kim Lyons of the Pittsburgh Post-Gazette, “the billable hour has long been the mainstay of law firms and their pay structure. But in recent years, firms have had to become more creative in how they get paid, as they compete for business with ever more cost-conscious companies.
Enter the “alternative fee arrangement.” Whether it’s a flat fee, a capped fee, a blended rate or some other variety, alternative fee arrangements are giving the billable hour a run for its money.”
LAWYERS AND BILLABLE HOURS
What is wrong with this exactly?
You read everywhere that law firms (lawyers, advocates, attorneys) have to change. Lawyers are too conservative. They hold on to the past and are anything but innovative. As the economic climate deteriorates the call for change becomes increasingly stronger.
The system of “hourly rate billing” in particular has to take the rap. Lawyers are reproached for billing hours with a fork, not working efficiently and being too expensive. The system apparently has the wrong incentives, partly because it is difficult to check the actual number of hours spent efficiently.
Anyone who becomes aware of …
Read the rest »