Compare outside counsel proposals on the same work
For in-house lawyers and legal operations staff selecting outside counsel.
How do you compare two law firm proposals when they describe different work?
Give both firms the same decision problem, deliverables and assumptions. Compare what each would actually do, who would do it and what could change the price. A rate sheet rarely tells you how much a useful answer will cost.
Describe the first decision you need
Use a hypothetical or appropriately cleared fact pattern until conflicts and sharing arrangements are addressed. State the business objective, forum if known, first deliverable, needed date and intended reader. Separate the initial assignment from possible later work. Ask respondents to flag missing facts that would materially change their proposal.
Request the name of the day-to-day lead, reviewer, expected availability and backup. Ask how they would handle a second jurisdiction, a material factual dispute or an approaching date. Prefer a short explanation tied to the assignment over a general list of credentials.
Make the price comparable
Ask each firm to price the same phase under stated assumptions. Request the staffing mix, included revisions, expenses, exclusions and what triggers a request to expand the budget. If one firm proposes a flat fee and the other hourly billing, compare plausible totals for the same phase and retain the uncertainty in the hourly figure.
ABA Model Rule 1.5 addresses communicating scope, fees and expenses. It offers background for the fee conversation. Check the applicable jurisdiction's rules and the terms of any eventual engagement.
Write down the reason for the choice
Evaluate each proposal for its fit with the work, the quality of the approach, the team's capacity and cost under the agreed assumptions. Identify any unresolved issue that could change the choice. Resolve conflicts, engagement terms and authority to hire before treating the selection as an engagement.
Worked example
Illustrative example. Firm A proposes $8,000 for a written assessment and a leadership call. Firm B estimates $6,500 for research only. The legal department asks both to price the assessment, one call and one revision. The decision note describes the resulting spread, the reviewer's experience and whether either firm can meet the date.
Primary sources
Related work at Agentic Attorney
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