As a Chief Financial Officer (CFO), your many responsibilities include managing financial risks, forecasting future financial performance, and planning your company's budget for operating expenses. Controlling legal costs from an in-house legal department or outside counsel is directly or indirectly included in those responsibilities.

MANAGING OUTSIDE COUNSEL COSTS

As a CFO, you not only understand that legal fees and expenses are part of the costs of doing business, you know the line-item number for legal fees on the company's budget. When we serve as outside counsel to corporate clients, we make try to clearly communicate about our billing practices and procedures so that the client is able to project legal costs with reasonable accuracy. 

When we are engaged by a new client, we make every effort to understand the clients business and their particular industry. This may involve meetings with principals, executives or operating personnel. In some instances, a tour of company facilities is appropriate. Based on an understanding of the clients business and corporate culture, combined with our own experience, we are able to provide the client an estimate of legal fees for a given project, or project a legal budget for the Firm to serve in a more regular, recurring capacity as outside general counsel or national litigation counsel.

OuR Billing and Budget Process

Our budget and billing process begins when we begin a new engagement. We the new client an engagement letter that clearly explains the billing arrangement for the engagement. Unless we agree in advance to an alternative billing arrangement, the Firm will bill the time of our attorneys at the hourly rates stated in the engagement letter. At the outset, we work with the client to determine a budget for the new project based on an estimate of the time and efforts we will spend on the proposed project.

BILLING ARRANGEMENTS FOR LONG-TERM ENGAGEMENTS

When we serve in a regular, ongoing role as outside general counsel, national litigation counsel or tax counsel, we can work with the client to adopt budgeting procedures that are tailored to the budgetary needs of the client. For instance, as part of a substantial, long-term engagement, we can provide clients with formal budget reports projecting anticipated legal projects, expected length of time of such projects, and total fees actually incurred upon completion of the projects.

CONTROLLING COSTS

We believe that the secret to controlling legal costs is open communication with legal counsel. Through regular communication with counsel, it is possible for the attorney to anticipate and address legal issues before they come to a head. Through foresight, planning and preparation, it may be possible to mitigate or avoid entirely risks and liabilities. Moreover, when conflicts and risks arise, the advanced preparation by your attorney prevents you from being caught flat-footed. Foresight and preparation can a long way to reducing the costs and delays of protracted disputes and litigation.

CONTACT US

To speak to an attorney about how we can be of service to you, or for information about our fee structure and billing process, please contact us or call 713.650.9700.

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