As
legal
departments
push
for
more
value
from
their
outside
counsel
relationships,
many
are
considering
the
use
of
flat-fee
access
arrangements
for
ongoing
Advice
&
Counsel
work.
These
monthly
fees
provide
flexibility,
predictability,
better
communication
with
the
law
firm,
and
often
reduced
legal
spend.
Drawing
on
our
combined
experience
in
Legal
Operations
strategy
and
legal
pricing
transformation,
we’ve
demonstrated
how
scope-based
pricing
models
are
helping
legal
teams
transition
from
reactive
support
to
proactive
partnerships.
Why
Hourly-Based
Models
Fall
Short
The
typical
hourly
fee
structure
for
A&C
support
is
often
an
open
checkbook.
and
does
not
promote
efficiency.
What’s
included
in
the
open
matter
(e.g.,
Agency
charges,
pre-litigation)?
What
are
service
level
expectations?
What
is
done
in-house
vs.
Outside
Counsel?
Without
well-defined
scope
or
service
levels,
these
arrangements
can
leave
both
clients
and
firms
guessing
without
controls
on
the
dollar
amount
spent
each
month.
This
tension
was
echoed
by Collin
Smyser,
General
Counsel
at
Option
Care
Health,
on
the
UpLevel
View podcast
(July
2025):
“When
you
have
hourly
pricing…
it
can
cause
your
attorneys
to
wonder
whether
they
should
call
outside
counsel,
and
it
can
kind
of
spin
them
up
in
terms
of
whether
they
should
do
the
work
themselves
versus
make
that
call.”
The
Power
of
Scope-Based
Pricing
Scope-based
fixed-fee
pricing
flips
the
script.
Instead
of
paying
for
undefined
access
and
unlimited
spend,
clients
enter
structured
agreements
with
clearly
defined
services,
delivery
cadence,
and
responsiveness
expectations
all
on
a
monthly
fixed
fee.
Support
can
be
customized
based
on
complexity
and
business
value.
Some
engagements
may
focus
on
routine
tasks,
such
as
answering
questions
or
reviewing
documents.
Others
may
require
strategic
counsel,
risk
analysis,
or
deeper
collaboration
with
internal
stakeholders.
For
high-impact
scenarios,
legal
departments
may
require
immediate,
executive-level
access
to
outside
experts
who
are
deeply
familiar
with
the
business.
Each
scope
of
work
is
priced
accordingly,
offering
a
monthly
fixed
fee
for
ongoing
work
streams
and
a
fixed
fee
per
occurrence
for
episodic
work.
As
Smyser
noted
in
that
same
podcast
episode,
legal
teams
should
be
upfront
about
what
kind
of
service
they’re
seeking:
“You
should
be
very
open
about
the
level
of
service
you
want
from
your
law
firm…
It’s
perfectly
fine
to
say
the
gold
level
of
service
will
cost
you
this
much,
and
the
silver
will
cost
you
less.”
Why
Legal
Departments
Are
Making
the
Shift
Rising
law
firm
rates
and
the
productivity
boost
from
Generative
AI
are
prompting
in-house
teams
to
revisit
how
they
pay
for
recurring
legal
work.
Scope-based
pricing
doesn’t
just
offer
better
cost
control;
it
rewards
outcomes
over
effort.
Smyser
emphasized
the
disconnect
between
time
and
value
under
hourly
models:
“Hourly
rates
don’t
tie
to
value…
What
you
don’t
want
is
to
be
consistently
surprised
to
the
upside.
If
you’re
always
saying,
‘Well,
I’ll
do
this
for
$5,000,’
and
then
it’s
$10,000,
that’s
a
real
problem.”
Legal
departments
want
measurable
impact,
efficient
delivery,
lower
costs,
and
proactive
insights.
Scope-based
contracts
create
the
foundation
for
those
results.
How
to
Build
a
Scope-Based
Advice
&
Counsel
Program
Getting
started
doesn’t
require
an
overhaul,
just
intention.
Begin
by
defining
what
type
of
work
needs
to
be
performed
by
Outside
Counsel
versus
what
will
be
done
in-house.
This
should
also
include
service-level
expectations.
Internally,
it’s
about
setting
clear
expectations
and
drawing
distinct
boundaries.
As
Smyser
put
it:
“Be
very
clear
about
what’s
in
and
what’s
out;
what
you
will
do
internally
versus
what
you
will
expect
externally.”
A
pilot
engagement,
focused
on
a
single
practice
area,
can
be
a
low-risk
way
to
test
the
model,
gather
feedback,
and
refine
the
process
before
scaling
it
more
broadly.
It
can
also
be
used
as
a
way
to
drive
acceptance
of
this
new
methodology.
What
Success
Looks
Like
With
scope-based
pricing,
the
real
win
isn’t
just
reducing
legal
spend,
it’s
gaining
predictability
and
freeing
up
time.
Legal
teams
no
longer
have
to
wade
through
the
monthly
invoice
and
accrual
grind.
Turnaround
times
improve,
internal
clients
get
better
service,
and
the
legal
function
becomes
more
strategic
and
measurable.
On
the UpLevel
View podcast,
Smyser
explained
that
budget
predictability
goes
a
long
way:
“You
can
avoid
fighting
with
your
finance
team
over
cost
overruns…
and
avoid
fights
with
your
vendors
and
your
law
firms
over
individual
lines
in
the
invoices.”
And
success
isn’t
static.
Regular
check-ins
and
post-engagement
reviews
help
refine
scope,
surface
process
improvements,
and
keep
the
client-firm
partnership
aligned
as
needs
evolve.
The
AI
Accelerator
AI
is
transforming
legal
delivery,
particularly
in
Advice
&
Counsel
work.
Tasks
that
once
took
hours
now
take
minutes.
But
unless
pricing
reflects
those
gains,
clients
won’t
see
the
benefit.
Scope-based
pricing
makes
it
reasonable
to
ask
how
AI
is
actually
being
deployed
in
the
work
being
done.
Is
the
firm
applying
automation
to
early
drafts,
compliance
reviews,
or
research?
And
if
so,
are
those
time
savings
being
passed
along
to
the
client?
This
model
helps
ensure
legal
departments
aren’t
paying
for
manual
effort
that
AI
already
handles,
and
it
rewards
firms
that
embrace
efficiency
and
transparency.
From
Transaction
to
Partnership
Scope-based
pricing
encourages
a
collaborative
rhythm.
Clients
don’t
have
to
think
twice
about
the
meter
running
before
picking
up
the
phone.
Firms
don’t
have
to
guess
what’s
expected.
Everyone
knows
the
rules
of
engagement
and
how
to
win
together.
So
if
you’re
still
managing
A&C
work
on
hourly
rates
with
fuzzy
boundaries,
consider
this
your
cue:
Scope
it.
Price
it.
Measure
it.
That’s
where
real
value
and
genuine
partnership
begin.
that
thrives
in
change.
Stephanie
Corey is
the
co-founder
and
CEO
of
UpLevel
Ops.
She
also
serves
as
the
Global
Chair
of LINK
x
L
Suite—a
premier
community
of
General
Counsel
and
Legal
Operations
leaders
united
to
transform
the
legal
industry
through
collaboration,
innovation,
and
strategic
insight. Stephanie co-founded LINK
(Legal
Innovators
Network),
a
legal
ops
organization
exclusively
for
experienced
in-house
professionals,
and
previously
founded
the Corporate
Legal
Operations
Consortium
(CLOC),
where
she
served
as
an
executive
board
member.
She
is
a
recognized
leader
in
legal
operations
and
a
frequent
advisor
to
corporate
legal
departments
on
scaling
operational
excellence. Please
feel
free
to
connect
with
her
on
LinkedIn. https://www.linkedin.com/in/stephcorey-ulo/
Ken
Callander
is
the
founder
of
Value
Strategies
by
UpLevel
Ops
and
specializes
in
helping
corporate
legal
departments
optimize
their
outside
counsel
relationships,
ensuring
greater
value,
efficiency,
and
budget
predictability.
As
part
of
the
Advisory
Team
at
UpLevel
Ops, he
partners
with
legal
teams
to
implement
strategic
outside
counsel
management
programs,
including
transitioning
from
hourly
billing
to
value-based
fee
arrangements. His
clients
span
industries
such
as
technology,
healthcare,
construction,
the
sharing
economy,
private
equity,
and
multinational
conglomerates.