Organizations face mounting pressures to reduce costs, improve the efficiency and the quality of legal service delivery, and manage budgets with exceptional predictability and certainty. In response, many legal and claims departments are looking for creative solutions, such as alternative fee arrangements (AFAs), to replace traditional hourly billing. AFAs have the potential to be a highly effective, attractive solution but can be very difficult to implement, modify, enforce, and evaluate without the support of technology. The TyMetrix® 360° AFAs Module offers a comprehensive 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 in driving down costs and increasing firm efficiency.
Key features of the TyMetrix 360° AFAs Module include:
- Out-of-the-box support for the most common AFA types, such as flat fee, blended hourly rates, contingency fees, retainers, capped fees, blended hourly rates, years-of-experience, volume discounts, task-based billing, and hybrid models
- Support for fee arrangements that can change throughout the matter lifecycle
- The ability to configure and customize the out-of-the-box AFAs to support the use of multiple currencies
- Business rules that enable automated enforcement of each AFA, including the ability to flag, reject, or auto-adjust invoice amounts
- Fields, rules, and reports that are fully configurable by the client, enabling each department to tailor the module to meet its unique needs
- The ability to easily apply different AFA billing templates to matters, assign multiple AFA types to a single matter where required, and enable users to monitor actual billing to ensure that it meets the agreed upon guidelines