What Each Timekeeper On A Project Should Know.
Knowing what the client is paying your firm informs and affects the strategy of a big project–indeed, the business strategy of the entire company if the stakes are high enough–and, importantly, the thoughts, instincts and habits of your people who work on it.
Suppose you have a great business client you want to keep, and you want to expand that work. Initially, you start off doing “day-to-day” work for it: a mixed bag of projects for a Fortune 500 company or a substantial start-up. Steady, fun and interesting stuff–but nothing fancy or high pressure. Planning. Monitoring or applying new environmental regs. A lease. Compliance items. Employment issues. Putting out fires. Spot projects for in-house counsel. Nothing too contentious. The monthly bills are rarely more than, say, $8000 to $15,000.
The client seems to like your firm–and, importantly, you like the client. You want more. But suddenly, the general counsel presents your firm with an intense litigation project or regulatory dispute which will consume a good senior litigator and 2 or 3 associates off-and-on for 18 to 24 months. This results in monthly bills suddenly ballooning to $40,000, $80,000 or more.