John Fitzgerald, CPA wrote an article in the Practice Made Perfect, Berdon LLP Law Firm Newsletter
Historically, the fee structure between client and law firm had been the billable hour. The world changed with the massive sweep of the Great Recession when firms faced huge fee reductions. Today, in-house legal departments continue to apply pressure on law firms in the form of fee reductions or risk-sharing agreements with clients. More than ever, clients expect firms to provide legal services in the most efficient and cost effective manner. While the billable hour remains the predominant fee arrangement in the legal industry, Alternate Fee Arrangements (AFAs) are becoming more commonplace.