Quick answer
Ask the firm to define the first piece of work, the person responsible for it, the fee basis, likely disbursements, exclusions, reporting intervals and the point at which it must obtain new instructions. A useful proposal lets you compare the same scope across firms instead of comparing hourly rates that cover different work.
Key takeaways
- Describe the business decision you need, not only the legal topic.
- Separate the first phase of work from negotiation, litigation and other possible later phases.
- Confirm who may assign work, approve additional scope and receive reports or invoices.
- Record rates, assumptions, disbursements, billing intervals and change-control steps before substantive work begins.
Define the business problem before discussing price
A small-business owner or director may approach a firm with a contract dispute, shareholder problem, unpaid account, regulatory notice or transaction. “Commercial advice” is too broad for a meaningful comparison. Give each firm the same short timeline, key documents, immediate deadline, decision required and preferred outcome.
Ask the firm what it needs to do before it can advise. The first phase might be a conflict check, document review and written options note. It might instead require an urgent letter, negotiation preparation or a court assessment. These are different mandates, even when they arise from the same business problem.
Do not send confidential material indiscriminately to several firms. Start with enough information for the firm to identify the parties, check whether it can act and explain its intake process. Confirm the secure route for any detailed documents.
Questions to ask
- What exact work is included in the first phase?
- What result or deliverable will mark that phase as complete?
- Which work is specifically excluded?
- Who will lead the matter, and which tasks may be delegated?
- What hourly rates, fixed fees or other billing methods apply to each person?
- Is VAT included in figures quoted to the business?
- Which disbursements or third-party costs may be added?
- Is an upfront deposit required, and how will it be accounted for?
- How often will the firm invoice and report against the agreed scope?
- Which assumptions could make the estimate change?
- Who at the business may approve additional work or settlement steps?
- Will the firm obtain written instructions before exceeding an agreed phase or threshold?
- What happens to fees and the file if the business ends the mandate?
- What information does the firm need before it can give a more reliable estimate?
Compare scope before comparing rates
An hourly rate does not show how many people will work on the matter, how senior they are, how much document review is expected or whether counsel and experts may be needed. Ask for the proposed team, task allocation and assumptions behind any estimate.
A fixed fee also needs boundaries. Confirm the deliverable, number of meetings or draft rounds, treatment of negotiation, and events that move the matter outside the fixed scope. For phased work, ask what you will receive at the end of each phase and what information will support the next decision.
The Legal Practice Council’s Code of Conduct says legal practitioners should not generate unnecessary work or expense, should accept work they can perform competently and timeously, and are entitled to a reasonable fee. For non-litigious fee disputes, the Code provides for a fees enquiry and places the onus on the practitioner to justify the reasonableness and necessity of the work charged for. A source/legal reviewer should confirm how those provisions apply to the facts of any actual dispute.
Confirm the team and decision path
Ask who owns the relationship and who does the day-to-day work. If an associate, candidate attorney, advocate, correspondent, expert or other provider may become involved, ask when, why and at what cost. Confirm whether the firm needs your approval before instructing a third party.
Within the business, identify one authorised contact and a backup. Record who may approve strategy changes, additional fees, settlement proposals and the release of information. Conflicting instructions from several directors or managers create avoidable delay and cost.
Check status, conflicts and money handling
The Legal Practice Act provides the regulatory framework for legal practitioners and legal-practice entities. The Legal Practice Council offers a public practitioner search. Use it to check the practising status of the people you intend to instruct; do not rely only on a firm biography or advertisement.
Ask when the conflict check will be complete and what information the firm needs for it. If the firm may receive or hold money or property for the business, ask which trust-account practitioner is responsible and whether a valid Fidelity Fund certificate is required and in place. The LPC provides a separate verification route for practitioners who require such certificates.
Documents and facts to prepare
- A one-page chronology with dates and responsible people.
- The main agreement, schedules, amendments and relevant policies.
- Material notices, letters and emails rather than an unfiltered mailbox export.
- Company records showing who may instruct the firm and approve decisions.
- Invoices, statements and proof of payment if money is disputed.
- Court, tribunal, regulatory and contractual deadlines.
- A list of all parties for the conflict check.
- The immediate business decision and the preferred practical outcome.
Record the engagement terms
Before substantive work begins, keep the firm’s proposal or engagement letter with the agreed scope, fee basis, team, deposit, billing cycle, disbursements, exclusions and change-control process. Record the reporting format and the person authorised to give instructions.
Section 35 of the Legal Practice Act contains detailed cost-estimate provisions, but the South African Government’s commencement information identifies subsections 35(7) to (12) among provisions excluded when Chapter 3 commenced. This article therefore treats a written estimate and scope as prudent procurement and record-keeping, not as a blanket statement that those subsections are currently in force. This point requires legal review before publication and should be rechecked whenever the article is updated.
If the work or invoice moves beyond the mandate
Raise the mismatch promptly and in writing. Identify the line item, instruction, scope term or estimate assumption you dispute and ask for an itemised explanation. Keep the engagement letter, instructions, change approvals, reports, invoices and payment records together.
The LPC publishes information about complaints and its Code addresses fee enquiries for non-litigious matters. The correct route depends on whether the concern is a fee disagreement, alleged misconduct, a court-related bill of costs or another issue. Do not describe every billing disagreement as misconduct; obtain advice on the appropriate process where the amount or consequences are material.
Common mistakes
- Comparing headline rates where firms have proposed different work.
- Treating an estimate as a guaranteed final price.
- Assuming the consultation fee includes drafting, negotiation or litigation.
- Leaving counsel, expert, filing, travel and correspondent costs unaddressed.
- Giving several people authority to expand the mandate.
- Approving urgent work verbally and failing to record the new scope.
FAQs
Should I compare hourly rates or the proposed scope?
Compare both. A lower rate may not mean a lower total if the proposed team, document review or deliverables differ. Give each firm the same problem summary and compare assumptions, exclusions and phases.
What should a fixed fee say about excluded work?
Ask the firm to identify the deliverable, meetings or draft rounds included, third-party costs, and the events that require a new quote or additional instructions.
How can a business control changes to a legal mandate?
Name the people authorised to instruct the firm, agree on phases or thresholds, and require a written scope update before extra work is started where circumstances allow.
Where can I check a South African legal practitioner?
The Legal Practice Council provides a public practitioner search. If a practitioner will hold client money or property, also ask whether a Fidelity Fund certificate is required and how to verify it.
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Legal note
This article is general legal information for South African readers. It is not legal advice. Speak to a qualified legal professional about your specific facts before taking action.