Kean Miller is at the forefront of alternatives to the billable hour. Our experience with AFAs and creative fee arrangements is extensive and spans more than 15 years.Many of our largest client relationships are based on the fundamentals of risk sharing, financial partnership, and constant communication. We are adept at the creation, implementation, and reporting of these alternative arrangements. Some of the arrangements we have entered into with clients include:
| Type | Description | Ideally Suited For |
|---|---|---|
| Fixed Fee per Deliverable | Affixes an “all in” price for a distinct piece of work, encompassing all of the law firm's ancillary preparation and effort. | Situations in which certain component pieces of work are distinct and measurable such that the client and Kean Miller can agree upon a workable fee schedule, even if the number of “units" of work may vary going forward. |
| Fixed Fee per Matter | Sets a fixed price for all legal work relating to a particular matter. | Situations in which a client matter recurs in a defined and predictable way so that the client and Kean Miller can agree on a reasonable fixed fee to handle that matter, barring any unforeseen developments. |
| Capped Fee | Used to set a ceiling on what the client will pay the law firm in a particular matter, or for a particular piece of work. | Situations in which the client is most comfortable with the hourly rate billing model and favors greater predictability (by capping fees on the high end) as opposed to lowering fees (by sharing with Kean Miller a portion of savings generated under fixed fees). |
| Flat Fee per Period | Typically covers distinct categories of services during the course of a specified period. | Situations in which distinct pieces of work need to be performed on a recurring basis, and the client wants to an incentive for the work to be performed even more efficiently. |
| Portfolio Fixed Fee | Represents a broader application of the fixed fee approach by assigning a large portfolio of work to a single firm for a fixed fee. usually after a competitive bidding process. | Situations in which a group of matters is sufficiently similar, recurring and predictable so as to lend itself to relatively consistent year- over—year patterns in terms of activity and fees. |
| Per Capita / “Ad Agency" Model | Fixes a set price to “purchase" on a discounted basis the full- time or half—time services of a certain person or team, who then produces the work required. | Situations in which the client wants particular Kean Miller attorneys) to be available and the we are willing to provide a discount in exchange for the certainty of volume in advance — and the volume is sufficiently predictable. |
| Performance- based Holdback | Aligns interests by tying a portion of law firm compensation to outcomes achieved. (Can be used in conjunction with any of the value-based fee options described above) | Situations in which the client is able to define success (entirely or in part) according to objectively measurable markers that Kean Miller can help attain via strong performance. |
| Pure Contingency | Law firm compensation depends entirely upon achieving certain outcomes. | Situations in which the client seeks recovery and is therefore willing to forego a larger portion of its upside stake in exchange for protection on the downside li.e. pay large fee for a win and no fee for a loss). |
| Blended hourly rates | Apply one average rate for all grades contributing to the delivery of a matter. | Low complex work, when budgeting / transparency is important. The next best possible billing arrangement when fixes or capped fees are not. This puts the focus on the deliverable rather than the person who performs the work. |
| Tiered volume discounts | Discounts to be applied if invoice values exceed defined thresholds. | Used in combination with any other billing model to account for economies of scale benefits which should be fairly shared with the client. |