Building Value Through Risk-Sharing Alternative Fee Arrangements
Ice Miller recognizes the importance of providing predictable, flexible and competitive fee structures. Through Ice Miller's risk-sharing fee arrangements, clients benefit by aligning their economic interests with the firm's interests. These fee arrangements offer a more transparent connection between efficiency and effectiveness in the delivery of legal services. A flexible approach to fee arrangements provides our clients with more cost certainty and clarity which current economic conditions demand. Risk-sharing fee arrangements provide an alternative platform for creating a "we're all in this together" dynamic between Ice Miller and our clients.
Which fee arrangement is best for your organization will depend on multiple factors including the volume, complexity and uniqueness of your legal needs. Your Ice Miller partners will discuss the options that help you meet your legal and budget goals. Whether you are the founder of a tech start-up or the general counsel of a Fortune 500 company, Ice Miller will address the unique needs of your entity. We will continue to monitor your fee arrangements as your legal requirements evolve and suggest fee arrangements that meet your current needs.
Risk-sharing alternative fee arrangements utilized by Ice Miller include:
Ice Miller has entered into fee arrangements in which we are paid a discount off regular rates for billable hours during the life of the engagement, with Ice Miller receiving a bonus if a desired result is achieved. If a desired result is not achieved, the client's fees remain discounted from regular rates. Another option is a "value added"/performance-based bonus approach, in which our fee is adjusted upward if we are able, on a mutually agreed basis, to add substantial value based upon the outcome.
For work in which a significant number of attorneys and support personnel are involved, a blended rate may be best. This rate is developed by looking at all the hourly rates of the Ice Miller team members who will be working for you and determining one rate at which the work will be done.
Fixed or Flat Fees
We can identify opportunities to charge a flat fee for projects or portions of projects that can be defined and budgeted. These fees are calculated based upon such factors as the size and complexity of the projects or matters and also the number of these matters or projects expected over the course of a year or some other specified period of time.
Discounts Based on Volume of Work
We recognize that companies willing to commit a significant volume of annual work to Ice Miller deserve to receive our best rates. In this type of arrangement, companies will receive a specified discount from our standard rates for a specified volume of legal fees during a year. The amount of the discount can be tiered to increase as the volume of legal work we perform increases.
We recognize that predictable legal fees not only assist with budgeting, but also enhance the relationship between legal counsel and the client. We want our clients to feel comfortable seeking advice without worrying about "the meter" starting. Therefore, we have experience with monthly and annual retainer agreements. These retainer agreements typically include a set number of hours of legal services and advice for a mutually agreed upon fee. After every six months, we review this retainer amount with the client to ensure that the hours included meet the needs of both the client and Ice Miller.
The client pays no hourly fees; instead, Ice Miller collects a percentage of the recovery that the firm is able to obtain for the client. If no recovery is obtained, then the client pays Ice Miller no fees. The client is required to fund the out of pocket costs of litigation, but the value of the attorneys' time is reflected in the recovery.
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