Fixed-Fee Lawyers: What Can Cost Extra?

The Three Lines to Find in a Fixed-Fee Quote

Start with the work included, the work excluded and the circumstances that change the price. For a document review, ask which documents and versions are covered, whether written advice is included and how follow-up questions are handled. For drafting, identify the number of revision rounds and who supplies the underlying information.

Make those questions concrete. 'Does this cover everything?' invites a broad answer. 'Does this include reviewing the revised draft after the other party responds?' identifies a task the firm can price. Keep the written clarification with the agreement so both sides can return to the same scope.

Professional Fees and Outside Expenses Are Different

Ask the firm to separate its work from filing fees, searches, counsel, experts and other disbursements. Check how GST is shown. Some expenses can be identified at intake; others depend on a later decision. An excluded expense should still have a process for explaining and authorising it.

A low headline quote may cover only the first step. That does not automatically make it misleading or poor value, but comparing it with an all-inclusive proposal can lead to the wrong choice. Put each quote into the same columns before deciding: first deliverable, later options, outside expenses and approval point.

Agree on the Moment You Decide Whether to Spend More

An initial advice stage can end with an options discussion rather than an automatic instruction to negotiate or litigate. Ask how the firm will present the next stage and its cost. If the underlying facts change, request an explanation of why the scope needs to change as well.

Imagine one quote covers a written review and another includes amendments. The useful next action is to ask both firms to price the same review and state the additional drafting fee. Choosing solely on the first number leaves the actual purchase unresolved. Use the costs-agreement checklist below to record the differences before engaging anyone.

Work through the same purchase before comparing the price

Consider two hypothetical contract-review quotes. The first covers reading a contract and explaining its risks in a call. The second includes written advice and an amended draft. Both firms may accurately describe their service as a fixed-fee review, yet the outputs differ. If your immediate decision is whether to sign, oral advice may be useful. If you need to send changes to the other party, drafting may be essential. Decide which output you need before treating the quotes as substitutes.

Write a short purchase description: ‘Review this agreement and its two schedules, identify the priority changes and provide one marked-up draft before the stated date.’ Ask both firms to respond to that scope. List any assumptions about document length, turnaround and negotiation. If a firm proposes a different first step, ask why; an initial advice stage might reveal that expensive drafting is unnecessary or premature.

Five exclusions that deserve a specific question

First, ask about new versions: does a revised contract restart the fee? Second, ask about contact with the other party: explaining a clause to you is different from negotiating it. Third, ask about connected documents such as guarantees or incentive plans. Fourth, ask whether implementation is included: advice on a settlement does not necessarily include preparing documents or managing payment. Fifth, ask what happens if the matter becomes urgent or contested.

These questions are scope prompts, not a claim that every firm excludes those tasks. The answer may be that a particular item is included. Keep that answer with the engagement documents. Where an item remains unpriced, record the decision that triggers a quote rather than treating the blank as zero. The aim is a usable budget with visible uncertainties, not a misleadingly precise total.

Use a pause point when the facts change

Suppose a review uncovers a personal guarantee that was absent from the original brief. Ask the firm to explain whether it can address that issue within the existing engagement, whether a different person needs advice and what extra work is proposed. A practical pause point is a short written summary of the new issue, the next deliverable, the fee basis and the deadline for your decision.

Do not wait until the final invoice to revisit a scope that has plainly changed. Equally, do not assume that every extra email creates an authorised new stage. Agree on the communication process at the start. At the end of each stage, ask what has been completed, what remains unresolved and whether anyone has been instructed to act on the advice. Clear handover can matter as much as a clear opening quote.

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