Common use of DISCLOSURE OF STANDARD RATES Clause in Contracts

DISCLOSURE OF STANDARD RATES. FEES AND CHARGES An attorney should err on the side of inclusion when enumerating standard rates, fees and charges. In an hourly case, fixed or minimum charges for specific functions should be clearly set forth in the agreement to avoid misleading the client. For example, most firms have a minimum billing unit; some charge a minimum time for a telephone call, letter, or court appearance; others charge flat fees for the use of standardized documents developed over the years, or for specific tasks. Costs and expenses that are passed through should be enumerated in enough detail to avoid misunderstanding. Charges passed through other than “at cost” should be detailed to avoid omitting a “standard rate, fee or charge.” Caution should be exercised in “marking up” or “surcharging” costs, as some authorities consider such practices unethical. Caution should also be exercised in charging for items that would be considered general office overhead.

DISCLOSURE OF STANDARD RATES. FEES AND CHARGES An attorney should err on the side of inclusion when enumerating standard rates, fees and charges. In an hourly case, fixed or minimum charges for specific functions should be clearly set forth in the agreement to avoid misleading the client. For example, most firms have a minimum billing unit; some charge a minimum time for a telephone call, letter, or court appearance; others charge flat fees for the use of standardized documents developed over the years, or for specific tasks. Costs and expenses that are passed through should be enumerated in enough detail to avoid misunderstanding. Charges passed through other than “"at cost” " should be detailed to avoid omitting a “"standard rate, fee or charge.” " Caution should be exercised in “"marking up” " or “"surcharging” " costs, as some authorities consider such practices unethical. Caution should also be exercised in charging for items that would be considered general office overhead.