Alternative Fee Arrangements | Practical Law
A Practice Note discussing why law departments are increasingly using alternative fee arrangements (AFAs) instead of the traditional billable hour model when engaging outside counsel. It describes common AFA categories (including flat fees, fixed fees, at-risk or contingent fees, holdbacks, and bonus or success fees) and billable hour variations (such as capped and collared fees), the risks and benefits of using different AFAs, and key considerations when selecting the appropriate AFA.