Professionals, such as lawyers and accountants, are running a business, just like you. They have to provide services, at a price which represents value for money, and make a profit in order to survive and progress.

Relationships with professionals are not always easy and where, there are difficulties, it is usually caused by a mismatch of expectations, with the level of service and fees charged being the prime issues. If you were expecting all of the litigation (including the barrister's fees) to be handled for the amount it costs the lawyer to review the outline of the case at the beginning, there are sure to be tears or fireworks!

The way to avoid this is to make sure you have an agreed understanding of what work is to be done, what the timescale is likely to be and how much you will be charged. You can help yourself by giving clear instructions and not wasting your professionals' time!

The more you understand about the issues, the easier it will be for you give clear instructions. You need someone to help you understand the issues - Legalpulse!

Instructing a Lawyer

So you are about to instruct lawyers for the first time. What issues do you need to address? You will need to be confident that there is a fit between the profile of your business, the sector in which you operate and the law firm. If you work in the I.T. Sector, it is no good going to a law firm which only specialises in serving the music industry. Even large firms have strengths and weaknesses, it comes down to the experience of the individual lawyers within the firm itself. It's not just about professional experience, either, you will also need to be confident that you can build up a strong personal relationship with the individuals you are to deal with. If your business goes well, this will be a lasting relationship so personal respect will help to make it more successful.

Lawyers generally sell their time, by the hour, so a good start on how much you will be paying is to find out the hourly rates of the team that will be doing your work. Ask for an estimate for the work you want done and note that it is only fair to agree that the estimate will have to be revisited if the transaction goes on for much longer than expected or if it goes off in a totally different direction to that anticipated at the outset. If you originally wanted a simple partnership agreement drawn up but end up forming a company, don't expect the bill to be the same as the estimate!

You should get a letter of engagement form the law firm setting out its charges, the estimate, the procedure for dealing with complaints and any other terms (the Law Society requires this). The law firm should check it has no conflict of interest, such as representing a competitor, in acting for you (you might ask this upfront) and also check that you are who and what you say you are, so as to comply with its obligations under the Money Laundering Regulations (they get a bit upset if you turn out to be a Colombian drug baron). You should establish who will lead the team at the law firm and who will be in that team (if you have been 'sold' the service by a 'heavy-hitting' partner you should be aware if a more junior lawyer is going to be doing the work - not necessarily a bad thing since they tend to cost less!). You should also agree how you will deal with disbursements (expenses), such as out of pocket expenses, couriers, fax, expert's fees, counsel's (barrister's) fees.

Regular billing is best all round; it avoids nasty surprises or a bill coming in after the financial year has closed. The law firm may be prepared to share some of the risk with you by, for example, charging less if the transaction falls over (aborts). It is only fair that, in exchange for this, the law firm gets some of the upside if the deal goes through, perhaps by charging an enhanced fee.

You can keep costs down by being a good client. This means responding rapidly, giving clear instructions and making yourself available. You should also nominate someone senior to lead from your side. Be straight with your lawyers, even if that means giving some strong or unwelcome messages! It is better to speak up about minor (or major) irritations at the time, rather than letting them fester.

To keep costs down and the transaction effective bring the lawyers in early and instruct them (they will help you with a strategic view of the transaction) but do as much of the commercial negotiation yourself, at least on a non-legally binding basis. You're entitled to expect nothing less than top quality technical legal advice but you should also expect commercial judgement and advice from your lawyers. Remember, however, that this is your transaction so, ultimately, it is your call on the commercial decisions.

When the transaction is over (successfully we hope), it is good practice to have a debrief with your team and the legal team, not least so you can learn how to be a better client and do it better next time. Who knows, maybe your lawyers will buy you dinner on a job well done!