I am in the middle of contract negotiations right now.  One of the questions I have asked the bidders relates to all of the ancillary services.  
 
Law firms 30 years ago sent the client a one paragraph bill saying, "We did $XXX work, please pay in 90 days."  
 
Overtime, firms began to itemize specific charges for which they wanted the clients to pay (duplication, long distance, faxes, messenger fees, traval expenses).  Some of these charges were used as a profit center for firms who would charge $.10 for copy when incurring a cost of $.03. In response, clients demanded much more detail about the work that was being done so that they could scutinize and contest certain charges.  Many clients began to demand that the ancillary charges, which they viewed as a cost of doing business, not be sent since they would not be paid.
 
Since the downturn in 2008, law firms are being approached with what have been called "Alternative Fee Arrangements."  Some of which have boiled down to, "Our budget for your work next year is X.  Would you like that in 2, 3, 4 or 12 payments."  There is no less amount of work requested or generated.  There is, in fact, often more of both.
 
Is it useful for customers or vendors to continue with the itemized approach, or would any list members consider the, "Here are my 100,000 boxes.  I will pay you $X/box/year for the next X years.  You manage the costs of pickup, storage, retrieval, delivery, return, restorage, destruction and withdrawal within the limits of what I am paying you." approach?

Doug Smith, ECMp
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Washington, D.C.
202-719-4455


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