Traditional Legal Services
Traditional legal services offered by most law firms are billed exclusively on an hourly basis. For example, 2 hours of legal work at $250 an hour results in a $500 bill. Simple and straightforward for the attorney, but often unpredictable for the client. This is why HARP LAW also offers Flat Fee and Hybrid pricing options. We want to take the guesswork out of our billing practices so clients can make more informed choices about the value being created for their business.
Flat Fee Rate means that services are billed at a set flat-rate-price regardless of the actual time an attorney spent on the matter. For example, if we are hired to review and discuss a contract for a flat fee of $500, that is all you will pay even if it actually takes us 5 or 10 hours to complete.
While most clients prefer flat rate fees because it gives them more certainty on how much to budget for, not all matters lend themselves well to flat rate fees. Services we perform regularly with a high level of predictability, as well as those that might involve little to no outside variables can often be provided on a flat fee basis. This might include services such as business incorporation or a simple contract review.
Hourly Fee Rate simply means that services are billed based on the amount of time spent on a matter. If it takes us 1 hour to review a contract and another 30 minutes to explain a contract over the phone, we will have spent 1.5 hours on the matter. We then bill you for the 1.5 hours at our hourly rate.
Services that involve a lot of uncertainty and unpredictability, such as negotiations, niche and complex contract drafting, and other matters that are dependent on the cooperation or diligence of an opposing party or client, must generally be billed on an hourly basis.
Hybrid Fee Rate is a combination of both flat rate and hourly billing, as in the fee model includes both a flat fee and hourly component. Hybrid billing may include a fixed fee price for services up to a certain threshold or event, and then if necessary, hourly billing thereafter.
For example, a hybrid fee arrangement might include drafting a contract template with up to 2 rounds of client revisions. If the client requests additional revisions beyond the 2 rounds included in the flat fee, the hourly fee will kick in moving forward. The trigger from flat fee to hourly billing could also be the result of other things, such as total time spent on a matter, beginning communications with third parties, or requesting additional services outside the scope of the flat fee arrangement. Of course, the trigger is always determined ahead of time between the client and attorney.