Agreement For Legal Services Template Page 2
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5Fees, Costs, and Billing Practices
—Based on the agreed scope of
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work described above, the billing rates are
Attorney:
$________ per hour
Associates: $________ per hour
Paralegals: $________ per hour.
under the circumstances and the client gives informed consent. Consider including language that
describes the “roadmap and typical timeline” of the matter that educates the client before events
unfold.
Consider describing what you will not do within the present scope of representation to avoid
misunderstandings later. This Sample Representation Agreement is a “full services agreement.”
“Limited services” or “unbundling” fall within a different “Limited Services” or “Limited
Representation” agreement. See RPC 1.2 and Comments as well as the relevant civil rules.
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Fees, Costs, and Billing Practices—This is the most complex topic of the fee agreement. The recommended
nomenclature is:
Fee is the sum payable to the firm for the services of its personnel, including the lawyer (s)
Cost is the amount payable for amounts that are receipted such as filing fees, travel, copies at FedEx
Office, expert witness, etc.
Expense is the amount payable for recovering the lawyer’s overhead such as telephone, fax, copies, etc.
Flat or Fixed Fee is the amount payable for the services of the personnel in the law office. Costs and
expenses are in addition to the fee.
Billing Practices is the description of what is included in the bill and the frequency. It may include
timekeeping conventions, the due date, interest penalties, and other details so that the client knows what to expect
and when. When fees and costs are defined at the beginning, there is less chance for
misunderstanding or dispute later.
Hourly fee agreements specify the rates per hour or day for each timekeeper (either named or by
type), time increments billed, billing frequency, and, for example, rates for billing travel time.
A
fixed fee is most feasible with a relatively certain scope of work. Not all matters, of course, are
amenable to fixed fees.
Consider including language that refers the parties to mediation or arbitration of any dispute over
fees. A fixed or flat fee equals the sum of the task(s) x rates x hours + a “premium.” The premium
represents the added value for the client because the Attorney assumes the financial risk for the
present
scope
of
representation.
See
the
Uniform
Task-Based
Management
System
The UTBMS describes the many phases and tasks of litigation and non-
litigation matters and is a helpful tool to calculate a fixed fee or to assist your client to understand
what tasks an attorney does.
Contingent fee agreements should include an example of a calculation of the proceeds to the client:
Judgment
$
Attorney Fees
$
Costs Advanced
$
Proceeds to Client
$
Credit cards may be accepted for payment of fees, costs and advanced fee deposits. Note that
separate merchant accounts are necessary for the Attorney’s general bank account and IOLTA
account. See RPC 1.15A and RPC 1.15B for more information concerning properly administering
trust accounts. See also Managing Client Trust Accounts linked on the WSBA IOLTA Information
page for a helpful booklet illustrating many trust account transactions with questions and answers.
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