Professional Fee Agreement Templates
Legal Disclaimer
These templates are provided for informational purposes only. Always consult your state bar association's ethics rules and consider having fee agreements reviewed by experienced colleagues or ethics counsel before use. State laws vary significantly regarding fee agreement requirements.
Types of Fee Structures
Hourly Billing
Traditional time-based billing for ongoing legal services
Best For:
- Business law and ongoing counsel
- Complex litigation matters
- Estate planning and administration
- Employment law consulting
- General legal counsel services
Key Terms to Include:
- Hourly rate specification by attorney/staff level
- Minimum billing increments (6-minute standard)
- Expense reimbursement procedures
- Regular billing cycle and payment terms
- Retainer amount and replenishment requirements
Contingency Fees
Percentage-based fees contingent on successful outcome
Best For:
- Personal injury cases
- Employment discrimination claims
- Collection matters
- Some business disputes
- Insurance claim disputes
Key Terms to Include:
- Percentage rates (often tiered by case stage)
- Expense advancement and reimbursement
- Client responsibility for costs if unsuccessful
- Settlement authority and approval procedures
- Calculation methods for fee distribution
Flat Fee Arrangements
Fixed fee for defined scope of legal services
Best For:
- Simple wills and estate documents
- Uncontested divorces
- Business formation
- Real estate transactions
- Routine corporate filings
Key Terms to Include:
- Detailed scope of services included
- Payment schedule and milestones
- Additional service fee structures
- Expense handling and reimbursement
- Scope change procedures and pricing
Hybrid Fee Structures
Combination of different fee arrangements
Best For:
- Complex business transactions
- Large litigation matters
- Multi-phase legal projects
- Corporate restructuring
- Intellectual property matters
Key Terms to Include:
- Clear delineation between fee structures
- Phase-based billing methodologies
- Success fee components
- Blended rate calculations
- Milestone-based payment schedules
Essential Agreement Clauses
Scope of Representation
Clearly define what legal services are included and excluded
Sample Language:
"Attorney agrees to represent Client in connection with [specific matter description]. This representation does not include [excluded services such as appeals, collection, etc.]."
Fee Structure and Payment Terms
Detailed explanation of how fees are calculated and when payment is due
Sample Language:
"Client agrees to pay Attorney at the rate of $[X] per hour for Attorney's services and $[Y] per hour for paralegal services. Bills will be sent monthly and are due within 30 days of receipt."
Expense and Cost Provisions
Clarify responsibility for case expenses and reimbursement procedures
Sample Language:
"Client is responsible for all reasonable expenses incurred in this matter, including but not limited to filing fees, deposition costs, expert witness fees, and travel expenses exceeding $[amount]."
Termination and Withdrawal
Procedures for ending the attorney-client relationship
Sample Language:
"Either party may terminate this agreement upon written notice. Upon termination, Client remains responsible for all fees and expenses incurred through the termination date."
Communication and Updates
Establish expectations for client communication and case updates
Sample Language:
"Attorney will provide regular updates on case status and respond to Client communications within [timeframe]. Client agrees to promptly provide requested information and documents."
State-Specific Requirements
Common Variations by State:
- • California: Mandatory arbitration clauses in certain agreements
- • New York: Specific disclosure requirements for contingency fees
- • Florida: Written fee agreements required for most representations
- • Texas: Detailed contingency fee disclosure requirements
- • Illinois: Specific language required for fee advancement
Best Practices for Compliance:
- • Review state bar model fee agreements annually
- • Subscribe to ethics rule updates in your jurisdiction
- • Maintain separate templates for different states if practicing across borders
- • Consider malpractice carrier requirements and recommendations
- • Document client explanations and acknowledgments
Sample Hourly Fee Agreement Template
Basic template for hourly billing arrangements - customize for your jurisdiction and practice
• Attorney services: $[RATE] per hour
• Paralegal services: $[RATE] per hour
Time is billed in [INCREMENT] minute increments.
Fee Agreement Best Practices
Client Communication:
- Explain fee structure in plain language
- Provide cost estimates when possible
- Document client understanding and consent
- Address potential fee changes upfront
Documentation and Records:
- Obtain signed agreements before starting work
- Maintain detailed time and expense records
- Send regular, detailed billing statements
- Keep copies of all fee-related communications