How Do Contract Lawyers Charge?

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Contract Attorneys: Fees and Costs

Lawyers have a reputation for charging exorbitant fees for their services, so it is no wonder that when clients are in need of their services, one of their first questions is about what contract attorneys will charge. The answer to this will depend on numerous factors.

Attorney Billing Rates

Lawyers and law practices have the freedom to set their own rates. For some, this can be as little as $50 an hour, while others may ask for hundreds for just a few minutes of work.

In general, the rates of the contact lawyer will reflect the experience of the attorney and how much work will go into the work they are being hired for. Other factors that can increase or decrease rates include the state you live in and if the lawyer is practicing independently or with a firm that gets a cut of their income.

Freelance Contract Lawyers often are less expensive because they do not have the same overhead as law firm lawyers. SaaS contract lawyers can often be expensive because they are in higher demand.

Of course, hourly rates are just one form of fee structuring a contract lawyer might use. You can see how the FTC breaks down fees here.

Contract Lawyer Cost and Fee Structuring

When you contact a contract attorney, they might use any of the following arrangements, or more than one in some cases:

  • Hourly Rate: This is the most common fee structure used by lawyers. The attorney must carefully document all time spent working on your project to justify their charges. This fee is typically broken down into fifteen-minute increments.
  • Retainer Fee: It is not uncommon for lawyers to ask for a retainer fee, which is an amount of money paid in advance for them to work on your project. As the lawyer works, they will send invoices showing how costs are being deducted from the fee. Should the project run over cost, you will be asked to pay more.
  • Flat Fee: If you are looking for help with a small project—for example, the drafting of a single contract—it is likely that the lawyer will opt for a flat fee over an hourly rate. Be sure you understand what all is covered by this fee before you pay the contract lawyer.

Depending on the nature of your project, there may be other fees associated with the work. For example, if a legal issue arises that is related to the contract, there will be court costs, expert witness fees, and others to consider. Should you need the contract lawyer to work on-site, you can expect to pay travel fees. Be certain to ask that the lawyer disclose all potential fees upfront. For more on contract lawyer, see our guide to everything you need to know about them.

How Important Is Cost When Hiring a Contract Lawyer?

As a business owner, you know that every expense matters. And that means that the cost of the contract lawyer you hire is important. At the same time, you don’t want to let worries about the price stop you from getting the service you need. Not having the protection of iron-clad contracts will cost you in the end.

ContractsCounsel offers the perfect balance for you. Our boutique marketplace features contract lawyers near you who have been pre-vetted and are happy to offer their services at an affordable price. We can connect you with contract lawyers experienced in your industry and licensed to work in your state, ensuring you get high-quality contracts without breaking the bank.

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