Issue link: https://epubs.iltanet.org/i/83718
Value-Based Legal Services (Not Just Estimating Hours at Standard Rates) map) development must be tailored for the specific engagement and can be designed using templates developed by practice groups within the firm. If this resource is not available, attorneys can evaluate historical matters to derive a reliable list of tasks. This is a much simpler process if historical matters utilized phase and task coding rather than block billing. This stage also requires attorneys and the client to identify assumptions which can result in omitted tasks for factual, procedural or strategic assumptions. Clearly communicating these assumptions is a critical element to deriving a reliable value-based fee. Risks should also be identified at this stage. This is the point at which an engagement moves from being simply a best guess of the hours necessary to complete the engagement to a fee arrangement that provides the client with predictability. The firm and the client must decide who will bear the risks of changes in the engagement. A firm with good historical information regarding past risks and costs related to those risks will be better positioned to provide the client with a fee estimate that mitigates or covers as many risks as possible. Step 4 - Identify Resources. A reliable estimate can only be derived if the appropriate resources are assigned to the appropriate tasks. Partners should not perform tasks that can be performed by an associate, and associates should not be assigned tasks that are more appropriately performed by a paralegal. This step in the process not only helps identify a reasonable estimate, but also forms the baseline for what tasks timekeepers or staff will perform once the matter is executed. Step 5 - Develop a Budget. Most budgets are based upon the tasks, the number of hours to complete the tasks and the rate of the resources performing the tasks. This is only an estimate and should be compared against historical matters to confirm the estimate is reasonable. ILTA White Paper 21