Tricks of the trade
I don’t think it’s any secret that good quality commercial legal support can get expensive. Here are a few reasons why you might get a nasty surprise at the end of a job (and some ideas about how to avoid this).
Paying for time spent
As the person footing the bill I reckon you’d rather know the cost of getting the job done in advance. Then you can be sure that the costs are proportionate to the value of the work. Law firms can often be persuaded to innovate on charging structures to include a fixed price or success fee element, particularly in the current climate.
Paying for non-existent time
Legal charges are still largely based on time spent. Most time recording systems use the concept of a minimum charging unit. This is often 10 or 15 minutes so even a one minute phone call can cost you £50 or more. That’s another good reason to push for a fixed price.
I wouldn’t have started from there if I were you…
Why allow lawyers to send out a contract that nobody in their right mind would sign? Of course it is part of any commercial lawyer’s job to get the best deal for his or her client; however the cynic might suggest that this gives lawyers the opportunity to spend more time negotiating the terms of a deal back to a position you would probably have accepted in the first place. You can save considerable time and effort by starting from a different place.
Top tips
- Get more than one quote.
- Negotiate a fixed price or limit wherever possible and be very clear about the circumstances in which any limit can be exceeded.
- Decide what seems commercially fair and reasonable to include in the contract before you start and make sure that any contract sent out in your name is aligned with this.
About Darrell Smith
Darrell has been a commercial lawyer for over 20 years. He worked with three of the largest UK commercial law firms and latterly as General Counsel EMEA and Commercial Director at BNY Mellon Corporation.
He now runs his own commercial and legal consultancy business and is a founder member and director of Advisers4U.com
Darrell is retained as commercial and legal director by a number of local and national businesses and is a founder member and Managing Director of Tetragen Ltd.
He always hated filling in timesheets so he only works on a fixed fee basis.
