Organizations face increased scrutiny of legal spend, including pressures to reduce costs, have defined and predictable budgets, and improve the efficiency of their legal service providers. In response, many departments are replacing traditional hourly billing arrangements with alternative fee arrangements (AFAs) that have the potential to be highly effective but can be very difficult to implement, enforce, and evaluate without the support of technology. The Passport® AFAs Module offers a complete set of tools that enable organizations to successfully negotiate and establish AFAs with legal service providers, automatically enforce a provider’s compliance with the AFA, and ultimately evaluate each AFA to determine its effectiveness at driving down costs and increasing firm efficiency.
Key features of the Passport AFAs Module include:
- Out-of-the-box support for the most common AFA types, such as flat fee, contingency fees, retainers, capped fees, blended hourly rates, volume discounts, and task-based billing
- The ability to configure and customize the out-of-the-box AFAs or easily add almost any client-specific AFAs as needed
- A set of best practices-based fields and business rules that enable setup and automated enforcement of each AFA
- A library of AFA reports to identify opportunities for AFA usage, prepare for AFA negotiations with legal service providers, and evaluate an AFA’s effectiveness
- Fields, rules, and reports that are fully configurable by the client, enabling each department to tailor the module to meet its unique AFA needs