Hourly fees remain favourite of Canadian GCs

Slightly over half of 300 Canadian organisations polled by Canadian Lawyer see hourly fees as their preferred billing mechanism.
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The research found that 55 per cent of organisations are fans of the hourly rate. A combination of hourly and flat fees comes second (36.3 per cent). RFP (request for proposal) comes next (5.4 per cent), followed by alternative arrangements (2.7 per cent ). Terrie-Lynne Devonish, Aon Consulting's chief counsel in Canada, says: 'Law firms are designed around a time and materials formula for billing and most in-house counsel come from firms who use this billing model, so it is not a surprise that we all still use this model. I think we all need to be more proactive and creative in experimenting with and using [AFAs, alternative fee arrangements]. I would like to see law firms be more proactive in offering AFAs to their clients and I always appreciate it when a law firm is flexible about their billing model.' Source: Canadian Lawyer

 

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