Alternative Fee Arrangement (AFA) has become a buzzword in
the legal community, and lawyers should expect clients to ask to
enter into an AFA. Prepare yourself with these eight important tips
for building an AFA.
There can be good reasons to work out an AFA for both the lawyer
and the client: the most significant upside for the client is the
predictability of the fees that will be incurred on a particular
file or group of files. For lawyers, the particular structure of
the AFA will determine the potential benefits.
Deciding on the form the AFA will be based on many factors as
set out below. Some AFA structures to consider include:
- Cap-Fee Budgeting
No matter what method of billing is used, you should always make
an effort to estimate the time and costs for a file. It's both
good business and good client management. Setting a budget for the
various stages in a file gives a client a sense of the big picture,
when most of their expenses will occur and what
