The August 24, 2009 issue of the Wall Street Journal covers how companies such as Pfizer and Cisco systems are making attorneys work for flat fee arrangements. This is in lieu of the attorney tradition of using hourly rates. Could it be that this could take hold of their profession and become a competitive edge for some firms?
Imagine an attorney estimating the cost to pursue a claim on behalf of a contractor and committing to a firm price. The first hurdle is to be awarded the “contract” if you will. What if three or four other attorneys are asked to submit their bids? What if there is a completion date stipulated by their client?
Once the attorney is awarded the contract, they need to complete it. It should be done in a timely manner. With a firm price, will there be as many delays by seeking continuances? Will there be as many depositions and document requests? Since the attorneys will be eager to under run the costs in order to make a larger profit will the assignment proceed faster?
I believe attorneys that adopt firm price services pricing will benefit in the long run. Competition will strengthen the firms by introducing performance efficiencies. It will eliminate the non-competitive firms.
Oh By the Way… It sure sounds real close to what architects, engineers and contractors do in their day to day business.
