Canadian Lawyer

6.1% 19.2% Non-profit cated they use a combination of billable hours plus flat fees (36.3 per cent); RFPs (5.4 per cent); and alternative arrangements (2.7 per cent). Trumper, who works for a public-private entity (Build Toronto is owned by the City of Toronto), says he uses a selection of big Bay Street firms and specialist boutiques depending on the project at hand. "The billing rates vary dramatically," he says, but he factors in the efficiency of the lawyers he chooses for a file. "If a lawyer at $500 an hour takes twice as long to do something than one at $1,000 an hour I'm basically paying the same price. So I look at the total bill as a measure of efficiency because I have it in my own mind what something should cost," he says. He also takes into consideration nonfinancial factors such as chemistry (does he like working with them?), quality of work, and responsiveness. "Responsiveness is very important — does she return my calls immediately? Do I get work done in a timely manner? All those things factor into the billing analysis." If embarking on a large project, Trumper sends out an RFP to a pre-selected group of firms and in that context he usually asks for billing proposals. "Typically what I get back is some sort of fee reduction based on volume of work. For example, if our billings are over X, they will cut the bill by 10 per cent." Some respondents to the survey indicated they are trying to get away from the billable hour: "We have a variety of arrangements with our primary firms, some of these are derived from RFPs for particular work, others are long-term arrangements with flat or alternative fees. Billable hours are our last alternative," said one. Trumper also uses a roster of lawyers for the company's regular stream of municipal and planning work. "I'll do an RFP and send it to all the planning firms and from that process I will have four or five firms on my municipal and planning law roster. So every time an issue comes up I don't have to RFP it; I'll simply go to the next person on the roster and give the file to them directly," he says. Focus on value Grant Borbridge, vice president of legal and general counsel with MEG Energy Corp. in Calgary, says for in-house counsel the focus should really be on finding value and getting 9.4% Government Technology 11.8% (municipal, regional, provincial, federal, and First Nations – including boards and tribunals) What sector is your company/ organization in? Service 10.8% Professional services 21.9% Resource-based 14.8% Financial Industry/ manufacturing What was the external legal spend for the Canadian legal department last fiscal year? 6.1% $100,000 or less 12.1% 26.3% $501,000 to $1 million 15.2% $1.1 million to $3 million 25.3% $3.1 million to $5 million 5.7% $5.1 million to $10 million 6.1% More than $10 million 9.1% $101,000 to $500,000 5.4% 2.7% Alternative arrangements RFP process on large projects 55.2% Billable hours 36.3% Combination of billable hours plus flat fees What type of billing arrangement do you have with your primary law firm? 0.4% r m a g . c o m L a w ye www.CANADIAN Flat fees November/December 2013 39

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