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In-house counsel in the energy & resources sector have highlighted lower rates as a key factor in outsourcing legal work, with Clayton Utz and Brisbane’s HopgoodGanim receiving special mention.

HopgoodGanim was lauded for its reasonable fee structure and personal service. “Working with HopgoodGanim was good, the firm charged reasonable rates and we had a good working relationship,” said the general counsel of a leading mining company.

“Clayton Utz charges more than anyone, but they discount heavily,” said the general counsel for an energy company, adding that specialist standout partners charge around A$650-A$700 while other partners' rates are A$450-A$500.

Another energy company said that it used a mix of top-tier and mid-tier firms depending on the type of legal work available, with top-tiers charging between A$600-A$650 and mid-tiers costing A$500-A$600. “Financing and capital raising deals would require a national top tier,” the energy company’s general counsel said.

This company was looking to agree on success bonuses and failure discounts with firms. “We’ve proposed something along the lines of ‘if we are successful [the firm] gets 120% or if we fail then [the firm] gets 80%.’ If the deal is not successful we agree to a discount.”

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