Cost estimates, standard deviations and fixed fees

Our legal cost estimates are built on real data, not guesswork. To avoid the common industry trap of underestimating the final cost of legal work, our estimates are driven by our historical billing data. 

For our regular services, we use an automated cost estimator that asks you a few simple questions upfront. This allows us to categorise the type of service you need, factor in the specific risks and complexities of your matter, and calculate a highly reliable estimate based on what similar past cases have actually cost.

Because legal matters have variables, this is an estimate rather than a fixed quote. However, our data-backed approach aims for a tight accuracy margin of plus or minus 10%. For example, if we estimate your costs at $1,100, our data shows it is highly likely your final invoice will sit between $990 and $1,210. With this method, you are just as likely to come in under our estimate as you are to go over it.

We understand some clients value upfront certainty. We can offer a ‘fixed fee’ arrangement for a 15% to 25% premium on our standard estimate. This premium reflects the fact that we take on some of the risk of unexpected complexities or additional time required to finalise your matter, plus fixed fee matters tend to unfold differently, usually requiring more of the lawyer’s time.

Fixed fee agreements do not cover extraordinary time or resources required due to major variables outside of our control. These variables include, but are not limited to:

• You changing your instructions or requiring substantial revisions to drafted documents;
• The opposing party failing to adhere to timelines or causing unreasonable delays;
• The emergence of new, unforeseen legal or factual issues; or
• Third parties (such as banks, experts, or government agencies) requiring extensive, unanticipated liaising.

In summary, under section 308 of the Legal Profession Act a law practice must disclose its costs: while we may offer a fixed price, we must provide an estimate of your total legal costs or, if that is not reasonably practicable, an estimated range of costs alongside an explanation of the major variables that could affect the calculation. Furthermore, under section 315 of the Act, we are required to notify you of any substantial change to this disclosure. This means that despite our careful initial estimates, revisions to your costs may occur if unforeseen circumstances emerge that were not factored into the original calculation—even, in some cases, where a fixed fee has been agreed but the required work exceeds the agreed scope.