Forbes: Piecework

February 14, 1993 – Forbes examines alternatives to hourly billing as clients question rising legal costs, citing Zoe Baird’s ABA remarks and research showing legal-services revenues compounding 12% annually since 1977. The article profiles Bickel & Brewer’s flat-fee engagements with case-specific performance bonuses—praised by Bellcore general counsel Michael Grove for budgeting—and contrasts them with bill-review services like Legalgard; chairman John Marquess, after auditing about 2 million bills, argues flat fees “must allow for a giant margin” and rejects bonuses. Forbes also cites Professor William Ross’s survey finding 60% of attorneys reported knowledge of bill padding and 20% viewed recycling prior research as billable, and notes concerns that hourly billing discourages productivity-enhancing technology.

“Hourly billing pushes economic incentives in the wrong direction -- weakening rather than strengthening the bonds between performance and pay.” — Forbes

“A lawyer’s work ought to be valued according to its contribution to the bottom line.” — William A. Brewer III