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PLAYBOOK TEMPLATES
Outside Counsel Billing Guidelines
Outside Counsel Billing Guidelines set the standards for law firm engagement, billing, and matter management. This playbook details compliance expectations, expense policies, and audit rights.
Table of Contents
Payment and Pricing Terms
Negotiation strategy
Negotiate for a payment schedule that aligns with project milestones to ensure cash flow aligns with deliverables. Advocate for clear invoicing processes to avoid disputes.
Ensure pricing adjustments account for potential cost increases and include clauses for interest on late payments to protect against delayed compensation.
Essential elements
1
Payment Schedule
Defines timing and amounts of payments.
2
Pricing Adjustments
Conditions for changing contract price.
3
Invoicing Process
Details on billing and documentation.
Action framework
ACCEPT
Propose edits when payment terms do not align with project milestones or industry standards.
EDIT
Reject clauses that impose unfair penalties or lack clarity in pricing adjustments.
ADD
Add clauses for currency fluctuation and interest on late payments if not present.
PRO TIP
Always ensure that payment terms are clear and enforceable to prevent future disputes.
Example clauses
FAVORABLE
Well-Structured Payment Schedule
"The Buyer shall make payments to the Seller according to the following schedule: (i) 30% of the total contract price upon signing of the agreement, (ii) 40% upon completion of the first milestone as defined in Exhibit A, and (iii) the remaining 30% upon final delivery and acceptance of the goods/services."
NEUTRAL
Standard Pricing Adjustments
"The contract price is subject to adjustment based on the following conditions: (i) any changes in the scope of work as mutually agreed upon in writing by both parties, (ii) fluctuations in material costs exceeding 5% from the date of this agreement, and (iii) any applicable taxes or duties imposed after the date of this agreement."
UNFAVORABLE
Ambiguous Invoicing Terms
"Invoices shall be submitted periodically without specific details on services performed or costs incurred."
Fallbacks
High-Risk Projects
In high-risk projects, ensure payment terms include milestones that reflect risk mitigation strategies and provide for early termination options.
International Transactions
For international transactions, include detailed currency fluctuation clauses to address potential exchange rate volatility.
Long-Term Contracts
In long-term contracts, consider including periodic reviews of pricing terms to adjust for inflation and market changes.
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DocJuris is not a law firm or a substitute for an attorney or law firm. We cannot provide any kind of advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options,selection of forms or strategies.