The time has come to finally recognize that billing by the hour misaligns the economic incentives of the client and the firm. In contrast, fixed fees for particular legal matters align the incentives of firm and client. The use of fixed fees has significant benefits, including reduced billing hassles, more predictable cost to the client, more timely payments to the firm, and, ultimately, agreement on the value of the legal services delivered.
In an article originally published in the September 2009 issue of Corporate Counsel, WilmerHale Co-Managing Partner Bill Lee and WilmerHale Senior Counsel and former General Electric Company General Counsel Ben W. Heineman Jr. argue that now is the time to replace the hourly rate with fixed fees. They discuss the process of setting fixed fees, reducing costs and rewarding results, managing projects, and calculating budgets and compensation.
To read the full text of Lee and Heineman’s article titled “Getting Your Fix,” please click here.