What Are Legal Document Preparation Fees?
Legal document preparation fees are costs charged by lawyers to draft, create, or prepare legal documents. Types of legal documents include:
Lawyers typically charge a flat fee or an hourly fee to clients to prepare legal documents. Let’s explore some available pricing data:
Flat Fee Contract Drafting – Pricing List
The below legal document preparation fee data comes from ContractsCounsel’s marketplace. The table includes 12 popular drafting projects.
|Document Type||Bid Avg||Project Avg|
|Single-Member Operating Agreement||$525||$450|
|Multi-Member Operating Agreement||$1,100||$950|
|Terms of Service||$845||$450|
All data is flat-fee (not hourly), so the pricing you see below is the total to complete a project. Please note, pricing for projects can vary based on contract type, number of custom terms, and number of revisions needed. The below pricing table includes averages.
How much does it cost to have a contract drawn up?
Contract drafting services are provided by lawyers on behalf of clients that need to create legal documents to govern transaction. The process involves the lawyer consulting with a client on the best terms to include in a contract that needs to be drafted. Once these terms have been identified, lawyers will create a first version of the document for the client to review and provide feedback.
Typically, contract drafting is an iterative process and may take a couple rounds of revisions to get the contract to say what the client wants, but also keeping the client protected.
Getting help from a lawyer for contract drafting is highly encouraged since contracts are the backbone of businesses and govern relationships with customers, employees, investors, parties, and other parties.
Based on ContractsCounsel’s marketplace data, the average cost of a project involving a contract drafting is approximately $600 . However, legal document preparation fees can vary widely from projects-to-project.
How Do Lawyers Charge To Prepare Legal Documents?
Lawyers who prepare legal documents charge in a variety of ways. Please explore them below:
Flat Fee Rates
Flat fee billing structures a popular way lawyers charge to prepare legal documents. Once a lawyer understands the assignment and terms that need to be included in the document; they will quote the client a flat fee for their services. The flat fee will typically include:
- Drafting of Document
- Certain Number of Revisions
ContractsCounsel’s marketplace data shows the average flat fee rate for legal document preparation to be $600 .
Many lawyers opt to bill on an hourly basis for projects. Given the uncertainty surrounding how much time a project may require, this is a way to make sure the lawyer and client are paying for the work being completed.
ContractsCounsel’s marketplace data shows the average hourly rate for a business lawyer ranges from $250 - $350 per hour.
Common Legal Document Preparation Projects
- Service Contract. Service contracts are legal documents that govern a service provider’s relationship with their clients. Service providers typically want ironclad service contracts to make sure their interests are best protected.
- Employment Contract. An employment contract is a legal document that manages the relationship between a business and an employee. Employment law is highly litigious, so it is best to have a lawyer create your contract to minimize future disputes.
- Asset Purchase Agreements. Asset purchase agreements are used when a business wants to buy assets from another business. Drafting them is often required in M&A work.
- Real Estate Contracts. Real estate contracts are typically high-value, and always good to have a lawyer create. There are many free templates online, but that is a big risk for a high-impact transaction.
- Investment Contracts. Given investment contracts typically include the exchange of a large amount of money, it is wise to have a lawyer draft them so your investors are confident in your ability.
Can I Write My Own Contract?
Writing your own legal document is acceptable since you can still create a legally binding document. However, it is not encouraged given the nuances involved in legal language and the law. If a transaction you are involved in is high value or high impact, it is best to hire a lawyer to draft a contract. However, if you do want to write your own contract, below are some tips and steps to keep in mind:
- Write with the recipient in mind. It is best to know your audience and write language in a way that is easy for them to understand.
- Use straightforward language. Murky language in contracts doesn’t do anyone good. Be as objective and straightforward as possible to make sure there is no grey area involved in certain clauses.
- Avoid templates if possible. Templates are all over the internet. It is best to avoid them as they may be outdated, or even worse, created by a non-lawyer that doesn’t understand the law.
- Conduct legal research. There are many resources online that can help you research the project you want to complete. It is always best to reference resources while handling your project.
- Structure the document appropriately. Make sure to review samples of your document type to make sure you structure your document well and include similar clauses.
Getting Help With Legal Document Preparation
If you are interested in hiring a lawyer to help you prepare a legal document, feel free to post a project in ContractsCounsel’s marketplace. All lawyers specialize in drafting legal documents and are vetted before joining.