Certain firms are increasing their rates for more experienced associates. In a climate in which alternative (fixed) fees are becoming more and more popular, I view this uptick in rates as a hedge against potential cost overruns in fixed fee arrangements.
While we’ve seen a shift in economic power from attorney to client, I’ve encountered more general counsel who are less concerned with merely negotiating lower rates than they are with a more holistic approach to cost control – an approach that not only reduces costs, but also manages expectations and improves performance.
Our clients want to reduce fees and expenses, but if the tradeoff is a decrease in quality or an increase in administrative oversight (of less experienced associates), any short-term economic benefit will be far outweighed by more fee volatility and a contentious relationship. Some, therefore, are willing to pay for more experienced attorneys as long as there are corresponding increases in predictability and efficiency.