Connect the price to a defined scope
A fee figure is useful only when the work it covers is clear. Ask what task, period or stage the estimate relates to and what deliverable is expected. Fixed, capped, staged and time-based charging descriptions can each depend on assumptions. Confirm whether the proposal includes conferences, correspondence, negotiation, drafting, filing, settlement or appearances rather than inferring coverage from the total.
Identify costs outside legal fees
Ask whether the amount includes GST and which disbursements may be charged, such as searches, filing fees, reports, travel, couriers, counsel or experts. Find out whether those amounts are estimates, when they are payable and whether money must be held in trust before work begins. Another specialist's cost should not be treated as included unless the proposal says so.
Ask what could change the estimate
New documents, negotiation, urgency, another party’s conduct or a change in process can expand the work. Ask which assumptions support the estimate, how progress against it will be reported and when the firm will seek approval before exceeding a stated amount or beginning another stage. Do not rely on a label such as free consultation to describe later work or all conditions.
Compare proposals and keep the written record
Compare proposals against the same first task, not simply the lowest number. Consider who will perform the work, the expected output, exclusions, timing, communication and external costs. Read the formal costs disclosure and engagement documents and ask for clarification before accepting them. This guide cannot interpret a costs agreement or determine whether a fee is reasonable in your circumstances.