Legal Costs Agreement Checklist Australia

Define the Work Covered by the Agreement

Highlight the sentence describing the work. Does it cover one consultation, advice on a document, negotiation, filing or representation through a particular stage? A reference to your general legal issue can be less useful than a named deliverable. Ask whether you will receive oral advice, a marked-up contract, a written recommendation or correspondence sent on your behalf.

Next, list what is outside the scope. Court attendance, negotiations after the first letter, specialist advice and reviewing new documents may be separate tasks. Ask what happens if the initial review reveals a different problem. Keep the final agreed version with the proposal and your clarification emails so the scope can be checked later.

Compare Fixed Fees, Hourly Rates and Estimates

A fixed fee and an estimate answer different questions. A fixed fee still needs an identified scope and assumptions; an estimate needs an explanation of the circumstances that could change it. If work is charged by time, ask who is expected to do it, which rates apply, how time is recorded and whether routine correspondence is charged.

Ask for a first-stage budget rather than an unsupported price for an entire uncertain dispute. You might request the cost of reviewing a defined bundle and advising on options, then decide whether to fund negotiations. For conditional arrangements, obtain an explanation of the success condition, excluded expenses and possible costs payable to another party. Do not translate a payment slogan into a promise that the matter is risk-free.

Check GST, Disbursements and Third-Party Costs

Put professional fees and outside expenses on separate lines in your comparison. Ask whether the quoted amount includes GST and whether searches, filing, experts, interpreters or counsel are included, estimated or excluded. A quote that leaves an expense open is not necessarily poor value, but you need to know who will approve it and when it becomes payable.

If money is requested before work starts, ask what it is for, how it will be handled and when you will receive an account. Do not infer that an advance payment buys every later task. Independently verify changed bank details through a trusted contact channel before transferring funds.

Agree on Cost Updates and Extra-Work Approval

Ask how you will be told that the initial scope or estimate needs to change. A useful arrangement identifies the reason for the change, the additional work, the revised estimate and the decision you must make. Discuss the timing of updates, particularly if the matter involves a hearing or a transaction date.

Keep a running record of the work you authorised and the bills received. If a charge is unclear, ask promptly for an explanation against the agreed scope. Do not assume that an internal discussion pauses a time limit for a formal costs complaint or assessment; check the relevant regulator's current process separately.

The decision desk · practical workbook

A scope-and-cost worksheet you can use before signing

Copy these headings into your own notes and complete one column per firm. Leave an unanswered item marked ‘not confirmed’. The exercise is to expose different assumptions before you compare prices; a complete-looking quote is not necessarily a complete engagement.

Use these prompts in your private preparation notes. On a narrow screen, scroll the table sideways to read every column.

Preparation mistakes to avoid

When the situation is less straightforward