Fee Structure

- Types of professional fee agreements (lump sum, charging per hour, lump sum with a maximum of hours).
- The factors that affect the calculation of professional fees.
First: Types of Professional Fee Agreements:
Agreeing on charging by hourly rate:
Agreeing to work based on a fixed lump sum with a maximum of hours:
- Agreeing to work based on a fixed lump sum:
- The owner instructs the attorney to take up an action to prosecute another party by claiming compensation for the delay in executing a contract.
- The attorney is surprised by the fact that the contractor has filed a lawsuit against the client that is related to the same matter to claim unpaid dues.
- The attorney is surprised by the fact that a third party (subcontractor) has joined the lawsuit to claim entitlements from the owner and contractor, claiming that both parties agreed with him to carry out works that the owner claims that he has already paid the contractor in charge for.
Second: Factors that Affect the Calculation of Professional Fees:
- The Attorney’s Specialization:
- The Difficulty of the Subject at Hand:
It is a grave mistake to think that the fees will be the same if the difficulty degree of the subject changes. For clarification, it cannot be possible for the estimated fees of a labor case consultation to be the same as a consultation related to a lawsuit with a bank-on-bank transactions. Besides, even in each subject, the number of details and that the attorney must search for and verify and the number of documents that he has to study is considered as a critical factor when it comes to estimating fees. In case of the existence of several agreements, documents and conditions between parties, the matter gets more complicated, the thing which requires an additional mental effort to be exerted by the attorney.
- The Spent Time:
The time spent on a specific subject shall be taken into consideration when determining the fees. This shall be done by estimating the monetary value for the time spent studying documents, preparing research, writing, and reviewing the legal advice for the client and meeting with the client before and after offering consultation to ensure his full understanding.
- The Value of the Claim:
The value of the claim constitutes an important factor in calculating the value of fees, whether the attorney mentioned such fact or not, the value of the claim is taken into consideration when estimating the fees due to the obligations incurred by the attorney because of handling the dispute. For example, if a company assigns you to transfer paper sheets from point A to point B, how much this will cost you compared to transferring paintings that are worth tens or hundreds of millions that you must deliver, and you may bear the financial and professional responsibility if you fail to deliver them successfully? The same applies to the attorney’s sought to achieve satisfactory results, ensure commitment to professionalism and obtain the best results in disputes in which the value of the claim is high.
- Other Costs:
There are many other costs that the attorney may incur, including the cost of commercial licenses, the cost for consultants and employees, in addition to the training costs incurred by the attorney to train lawyers and consultants to ensure the renewal of their periodic licenses, etc.
- Making a Profit:
There are many other costs that the attorney may incur, including the cost of commercial licenses, the cost for consultants and employees, in addition to the training costs incurred by the attorney to train lawyers and consultants to ensure the renewal of their periodic licenses, etc.