Quick answer
Ask for a written, staged mandate that connects each fee to a defined supplier-dispute deliverable. The first stage might be a contract-and-deadline assessment, a draft-notice review, a negotiation plan, an urgent-relief opinion or a forum-and-prospects assessment. It should state which documents and legal questions are included, the assumptions and exclusions, who will do the work, the fee basis, VAT and disbursements, the decision point at the end, and who may approve work outside scope.
How to use this guide
Do not compare only hourly rates or headline estimates. Two quotes are not comparable if one covers a short document review and the other assumes correspondence, negotiation and preparation for proceedings. Do not ask for “the whole dispute” to be handled before the first decision and risk are understood.
Use the supplier-lawyer escalation test to identify why advice is needed. This page turns that need into a purchasable work package.
Define the first legal product
Give each proposed lawyer the same short instruction and ask them to price or explain the same first stage.
| Possible stage | Defined output | Decision it should enable |
|---|---|---|
| Contract triage | Note identifying operative terms, key facts, legal questions and live dates | Handle internally, investigate further or escalate |
| Notice review | Marked draft or approved communication with clause and delivery controls | Send, revise, delay or choose another step |
| Risk and remedy advice | Options note showing assumptions, material risks and sequence | Demand performance, preserve rights, negotiate or consider formal process |
| Negotiation preparation | Authority, proposal parameters and communication plan | Open a controlled commercial discussion |
| Urgent assessment | Advice on urgency, evidence, forum and immediate protection | Act now, preserve position or use ordinary process |
| Formal-process scoping | Forum, pleadings or arbitration stage, team and budget range | Authorise or decline the next litigation or arbitration phase |
The first product should not promise an outcome. It should reduce uncertainty at a named decision point.
Questions about included work
Ask:
- Which agreement, purchase orders, notices and business records will you review?
- Which factual and legal questions will the stage answer?
- Will the deliverable be written, oral, marked-up or a final draft ready for authorised use?
- Does the scope include one follow-up meeting or a round of questions?
- Are calls or correspondence with the supplier included?
- Does the work include drafting, negotiating, filing or appearing, or only advice?
- Will you check prescription, contractual time bars, notice mechanics and forum at the start?
- What decision should we be able to make when this stage ends?
If the business needs a review of a proposed breach or cancellation letter, say so. The pre-send notice check can help identify the clause, authority, delivery and remedy questions to include.
Questions about assumptions and exclusions
A useful quote makes its boundaries visible. Ask the lawyer to list assumptions such as:
- the contract version supplied is complete;
- South African law applies;
- no formal proceeding has begun;
- the document volume falls within an agreed limit;
- no expert evidence is needed at the first stage;
- the supplier remains solvent and trading; and
- the business has authority to provide and use the records.
Then ask what is excluded. Common exclusions may include counsel, court or arbitration appearances, expert reports, forensic collection, travel, translations, foreign-law advice, insolvency work, tax advice, intellectual-property analysis, discovery, enforcement and appeals.
An exclusion is not automatically unreasonable. It is a signal that a later decision and price may be required. The business should know which likely event moves the work out of scope.
Questions about the team
Clarify:
- who is responsible for the matter;
- who will perform the initial review;
- which work may be delegated;
- each person’s role and fee basis;
- who checks the final advice or letter;
- whether counsel, an expert or a foreign practitioner may be needed;
- who may appoint a third party; and
- whether the business must approve that appointment and cost first.
Ask how duplication will be controlled if more than one person reviews the same documents. A lower junior rate does not save money if the same file is repeatedly re-read without a defined reason.
The Legal Practice Council Code of Conduct addresses professional duties, and the published rules include accounting to clients for receipts, disbursements, fees and the balance due. Those regulatory sources do not set the budget for your dispute. They support asking for a clear mandate and transparent account.
Questions about fee basis and estimate
Ask the firm to explain which model applies to each stage:
- hourly rates by team member;
- fixed fee for a stated deliverable;
- capped fee subject to assumptions;
- recurring retainer and what it actually covers;
- staged estimate or range; or
- another lawful arrangement explained in writing.
Then ask:
- Is the figure a quote, cap, estimate or deposit?
- Are stated rates and amounts inclusive or exclusive of VAT?
- What document volume and number of meetings were assumed?
- Does time spent reading email, travelling, waiting, printing or administering the matter attract a charge?
- How often will time and cost be reported?
- At what percentage of the estimate will the lawyer warn us?
- What work stops when the deposit or cap is reached?
- How is unused trust money dealt with?
Avoid treating a deposit as the total cost unless the engagement says so. Also distinguish professional fees from amounts held in trust and from third-party disbursements.
Questions about disbursements and external costs
Request a separate list of foreseeable external amounts, for example:
- advocate’s fees;
- expert, investigator or forensic-technology charges;
- arbitration institution and arbitrator fees;
- sheriff, correspondent, courier or filing costs;
- travel and accommodation;
- transcripts, copying, hosting or document-platform charges;
- translation or foreign-law assistance; and
- taxes or bank charges where applicable.
Ask which items need written approval before commitment, whether the firm adds any administration or handling charge, and how invoices or supporting detail will be presented.
Questions about change control
Use a simple rule: no material out-of-scope work without a written change note.
The note should state:
- what new fact or event changed the mandate;
- the additional work proposed;
- the revised deliverable and deadline;
- the fee effect and new assumptions;
- the cost of stopping at the current stage; and
- the authorised business decision-maker.
Typical change triggers include a counterclaim, urgent application, arbitration demand, supplier liquidation, large document production, expert issue, cross-border question or unsuccessful negotiation.
Agree how emergencies will be handled if the authorised person cannot respond. A practical emergency protocol should not become unlimited standing authority.
Questions about settlement and success-based fees
Ask who may propose or accept settlement, what financial and non-financial terms need approval, how advice on an offer will be presented, and whether settlement drafting and implementation are included.
Do not assume a percentage-of-recovery arrangement is available or suitable. The Contingency Fees Act permits contingency-fee agreements only within a statutory framework and contains formal requirements, including a written agreement and prescribed content. If such an arrangement is proposed, ask for a compliant agreement and an explanation of how fees differ if the matter settles or proceeds.
A commercial settlement can also include supply transition, confidentiality, releases, tax effects, payment security, return of property or future trading terms. Confirm whether advice on those implementation details is included.
Questions about reporting and stopping
Agree a reporting rhythm tied to decisions rather than a stream of unstructured updates. Ask for:
- a start confirmation after the conflict and authority checks;
- immediate notice of any deadline or assumption failure;
- a cost-to-date and estimate-to-complete at each decision point;
- a list of work completed and work still proposed;
- copies of material sent or received; and
- a closing account and file handover if the mandate ends.
Confirm who can pause or terminate the engagement, what protective work may still be necessary, how outstanding fees and disbursements are handled, and which records will be returned or retained under applicable rules.
A comparison sheet for two proposals
| Comparison field | Proposal A | Proposal B |
|---|---|---|
| First deliverable | ||
| Documents and legal questions included | ||
| Deadline or decision point | ||
| Assumptions | ||
| Exclusions | ||
| Responsible practitioner and team | ||
| Fee model and VAT position | ||
| Disbursements and third parties | ||
| Reporting and warning threshold | ||
| Change-control rule | ||
| Stop or handover position |
Do not award the instruction automatically to the lowest number. Compare whether each proposal answers the same question with a usable product, credible staffing and controlled escalation.
For general lawyer-fee questions outside this supplier context, use the lawyer fee and scope guide. The commercial lawyers guide owns the broader provider-comparison task.
Legal disclaimer
This comparison sheet gives general South African information about organising a legal mandate. It is not a fee ruling, endorsement, quotation or interpretation of a particular engagement. Fee models, recoverability, tax, trust money, contingency arrangements and termination consequences depend on the written agreement, applicable rules and circumstances; obtain an explanation before signing.
FAQs
What should the first legal stage cover in a supplier dispute?
Choose the smallest deliverable that enables the next decision, such as contract-and-deadline triage, notice review, remedy sequencing, negotiation preparation, urgent assessment or formal-process scoping. Record documents, questions, assumptions and exclusions.
Is a lawyer's estimate the same as a fixed fee or cap?
Not necessarily. Ask whether the amount is a quote, fixed fee, cap, range, estimate or deposit; what volume and meetings it assumes; whether VAT and disbursements are included; and when a warning or new authority is required.
Which supplier-dispute costs may sit outside professional fees?
Possible disbursements include counsel, experts, arbitration fees, sheriffs, correspondents, filing, travel, transcripts, document platforms, translation or foreign-law help. Ask which require written approval and how supporting detail will be provided.
Can a commercial contract dispute use a contingency-fee agreement?
Do not assume it can or should. The Contingency Fees Act permits qualifying arrangements only under formal statutory conditions. If one is proposed, request the compliant written agreement and a clear explanation of settlement and trial fee consequences.
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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.