An increasing number of legal consumers are choosing to employ firms on a retainer model according to two Sydney firms. People & Culture Strategies and Marque Lawyers have been offering clients retainers for some time, but both firms have reported a growing movement in recent months towards the billing model. “The retainer model is really taking off. We have had it in place for a year but in the past six months interest has gone crazy,” managing partner at P&CS Joydeep Hor told ALB. “Month to month about 20 percent of our revenue is coming from retainer work.”

The retainer model varies for different clients in terms of what it includes, but Hor says it covers the vast majority of services that the firm offers. “Very few clients have had needs that fall outside of what is covered.”Similarly, the 20 or so clients that are on a retainer with Marque Lawyers also have varying legal boundaries in terms of what is and is not included. According to managing partner Michael Bradley it depends on the nature and volume of the work the client generates. “It works best where there is a reasonably predictable flow of work,” he said.

Both firms agree that having a retainer model is advantageous for the clients and the firms. “We get to interact a lot more with the clients and it gives us certainty in terms of revenue flow,” said Hor. “It also forces interaction between us and our clients in a way that is a lot more open, because they are not worried about the cost.”

Bradley added:  “Clients don’t have to make a continual value judgement on an issue or legal question, because it won’t cost them any extra and the certainty aspect is a strong positive for us.”