Most Law Departments Have Some Form of Non-Hourly Billing Already in Place

When AFAs are implemented ad-hoc, there is often wide variation on a single concept.  While something like flat fee billing sounds simple enough, it can be handled in a number of different ways.  The flat fee could:

·     Be paid at the beginning or end of the matter, at set intervals while the matter is handled, or as the matter moves into different phases of work

·     Be associated with specific tasks handled by outside counsel, but with other tasks billed at an hourly rate

·     Change if the case reaches an agreed-upon duration or threshold of services performed

What About Spreading the Risk?

Implementing AFAs represents an opportunity to share risks and rewards with valued outside counsel partners.  There is an art to crafting win-win value billing structures that demonstrate your confidence in outside counsel while also limiting risk to your organization.  When done correctly, these fee structures can really enhance your relationship with outside counsel!

It Always Comes Back to Billing!

The details of the fee arrangement add complexity to the bill review process.  Most often the fee structure is captured externally and may not be shared with the bill reviewer.  There are other considerations as well.

·     Who initiates the bill and how is it formatted?

·     Do you need information on the services performed in addition to the AFA bill?  How do you get it?

·     What burden does this place on outside counsel?

·     What kind of impact does it have on e-billing?

AFA Services by Baker Robbins

Consultants from Baker Robbins & Company are skilled in helping law departments make better decisions, manage matters and outside counsel more effectively, maximize cost savings by using different alternatives to hourly billing, and to structure the follow-through necessary to make alternate billing programs successful.  Our services include:

·     Assessing whether your organization functions as a data-driven enterprise and identifying steps necessary for an AFA program to be successful

·     Identifying system and data requirements necessary to support an AFA program

·     Determining how non-hourly billing might best be utilized vis-a-via your different departments, case types, areas of law, preferred outside counsel relationships, etc.

·     Reviewing current workflows to determine whether any additional steps are needed to support AFAs

·     Suggesting metrics that identify the cost of existing services and how to use these to calculate new fee arrangements

·     Working with management to review the success (or failure!) of alternate fee arrangements utilized