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The Nightmare Scenario: How a $2,000 Quote Turns into a $6,000 Bill
You get a quote for $2,000 to draft a contract. You sign the paperwork, assuming that’s what the project will cost.
Three weeks later—after a couple of emails, a minor tweak to the document, and a quick phone call with the other side’s lawyer—the invoice lands in your inbox: $5,850 + GST.
You call the firm, furious. Their response? “The initial figure was just an estimate for Draft #1. Revisions and negotiations are billed hourly.”
Why 90% of Clients Fall Into This Scenario?
It is they do not realize how to read their Legal Costs Disclosure.
When a law firm hands you a proposal, they are legally required to give you a Costs Disclosure document. Most people glance at the first page, see $2,000, sign on the dotted line, and assume they have price certainty.
Here is what is actually happening behind the scenes:
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Page 1 is an “Estimate,” Not a Price Guarantee.
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The Fine Print contains a table listing hourly rates ($450/hr for Associates, $700/hr for Partners).
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The moment you ask for a minor tweak, or the other party’s lawyer emails back with questions, the “$2,000 quote” vanishes. You are instantly shifted onto hourly billing (charged in 6-minute increments) for every single second spent on your file.
Because real-world legal matters almost always involve revisions and negotiations, your final bill is virtually guaranteed to blow out.
3 Simple Questions to Ask Before You Sign
Put the burden of clarity back on the firm before signing their costs agreement:
- Are hourly rates included in the Cost Disclosure? If yes, it means one thing. The initial figure is usually an estimate. If your matter moves beyond a basic scenario, additional work will be billed by the hour.
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Are revisions, calls and negotiations included or excluded? Legal matters naturally require back-and-forth communication and revisions. If these are billed hourly after the first attempt, your bill can escalate quickly.
- Does the quote define clear, stage-by-stage milestones? An estimate i snot a guarantee. When unexpected complications arise, you absorb 100% of the financial risk.
Looking for Guaranteed Fixed Fees?
Our firm operates strictly on Stage-Based Fixed Fees. You will always receive a clear, guaranteed quote covering drafting, revisions, and negotiations before any work begins. Learn more about our pricing model.