Cutwater Law understands that clients prefer to avoid hourly billing arrangements. While it is appropriate in some situations, Cutwater is open to alternative billing arrangements. We rely on client input when developing a billing strategy that works.
Generally, there are four broad categories of fees that Cutwater Law considers when pricing its services:
- Billable hour
- Flat, or fixed, fees
- Success fees
Below please find a description of how each category can be customized to meet a client's needs.Billable Hour
Most clients are familiar with fees that are billed by an attorney at his or her hourly rate. The attorney keeps track of how much time is spent working on a client matter and sends the client for the amount of time worked, multiplied by the attorney's hourly rate (often referred to as "hours times dollars").
Discounts - If hourly rates are appropriate, Cutwater Law may work with a client's means by providing a discount to such rates. Discounts might also be offered to a client for timely or early payment of invoices.
Fee Caps - Cutwater Law may offer to cap an hourly billing arrangement to create a ceiling for the total amount of billings allowed. If it exceeds the cap, Cutwater Law absorbs the cost of the extra work.
Budgeted - In this scenario, Cutwater Law would provide a proposed budget. If acceptable to the client, actual hours billed are tracked alongside the budget. Cutwater Law is not paid for services performed in excess of the budget. This method is useful when a client retains Cutwater Law for a series of similar matters or transactions. It provides transparency for both parties and allows the parties to best establish a fair or reasonable fixed or capped fee arrangement.Flat/Fixed Fees
Cutwater Law may offer a flat fee arrangement in connection with a single transaction. For our current flat fee rates on corporate and securities matters, please review our Flat Fee Menu. Cutwater Law and the Client agree to a set price for a specific scope of services. Cutwater Law requires that all flat fee arrangement be paid upfront, in full.
Risk Collars - Cutwater Law establishes a collar that is formulated around an estimated budget that is based on an an hourly rate. The client agrees to pay Cutwater Law a bonus if it completes the job under budget. If, instead, Cutwater Law runs over budget, it gives the client a discount.
Subscriptions - Also referred to as a retainer, a subscription is a repetitive flat fee arrangement. Clients who require "Outside General Counsel" services often prefer this model because it they are better able to predict monthly costs. Learn more about our subscription services.Success Fees
Success fees can ben an option when Cutwater Law is retained for a merger and acquisition deal or a securities offering. Cutwater Law may establish a set fee for a project with a bonus payable to Cutwater Law upon it achieving a desired result. Measures of success might include:
Closing a transaction by a certain date with certain terms
Resolving an issue before reaching a certain cost level
Paying some or all of Cutwater Law's fees when or if a round of financing closes (also referred to as "deferred fees to financing")--This option is often desirable for entrepreneurial clients that are bootstrapping the company until a financing event.
For certain startup company clients, Cutwater Law will consider an equity arrangement pursuant to the following arrangements:
Straight Investment - Under this model, Cutwater Law will purchase stock in a client's company, but will not adjust its fees or billing schedule.
Stock-As-Fees - Under this model, Cutwater Law will accept stock or stock options in lieu of cash or in addition to discounted fees offered early in the representation.