We start this article with a Lawyer Health Warning.
For those lawyers who suffer from a nervous disposition about reduced hourly rates, increased legal fees competition and/or the end of the legal world as they know it…. look away now.
For those lawyers with a modern and commercial perspective on legal service delivery, stay with us.
And for those business owners looking for greater value from their legal fees … the legal world isn’t ending, it’s moving in your direction.
Background: Huge Disparity With Legal Fees And Quotes
A company based in London is on the verge of agreeing a property deal worth approx. £14m. The developers have raised £9m but the deal needs a bridging loan of £5m and the company needs to appoint lawyers to produce a reviewing report on title and draft the facility agreement.[tweet_dis_img][/tweet_dis_img]
Initially they got in touch with their incumbent firm of London based lawyers and were ‘surprised’ to be quoted a legal fees of £35,000 which, even after a hard push and much gritting of teeth, the firm grudgingly reduce to £25,000.
It still felt expensive for the work involved, a sense it was being priced because of the project, rather than the work and so, with the ability to compare and contrast lawyers much easier than ever before, so they decide to compare legal fees & lawyers by pitching the work elsewhere and became even more ‘astonished’ with the original pricing when they discovered a firm from outside London, with exceptional pedigree, quoting circa £10,000.
Solution: Huge Savings With A Little Competition
It doesn’t take a mathematical genius to work out the enormous savings achieved by driving a small amount of competition on legal fees, and by not accepting the legal fees quote of incumbent and complacent lawyers, who clearly viewed this is as a big ticket project that required a suitably handsome legal fees.
The value delivered by lawyers, and professionals more generally, will ever more be under the spotlight as technology and transparency combine to shine a light on this previously opaque market space.
We can provide many similar examples of dramatic savings being achieved by asking lawyers to sharpen their pencil.
As long as the capabilities of that lawyer are taken as a given – such as when you instruct via LawyerFair and our tightly controlled panel – then, the quality won’t go down, but the value will go up.
Article written by LawyerFair : A legal procurement and comparison service for business owners.
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