Kate Mills reported on p54 BRW October 1-7 www.brw.com.au that Telstra has come to fee arrangements with some of its legal panel firms based on criteria other than time.
Will Irving general counsel at Telstra is reported as saying:
” It (hourly billing) recognised the input but not the output and value the work produced…there are few professions left that simply account for the time that they spent on something.”
So true Will. Telstra put Gilbert + Tobin on a fixed fee retainer arrangement after telling panel firms he wanted then to come up with something innovative. G+T shares a “volume” risk if it takes on more work than it budgetted for but a risk I am sure their client appreciates too.
Boutique alternative model firm Advent is also on Telstra’s panel for its innovative pricing and resource arrangements.
So far 30% of Telstra’s legal work is not based on time. When this ratio is reversed we will know both the client and the law firms are far better off and that time based billing is truly only lleft for the dinosaurs.
Today Telstra.Who’s next? Could even be one of your clients?