Similar to a fixed fee, but an agreed fee for a particular service. Fee established and agreed on each occasion. Requires a careful definition and disclosure of what work is to be done so that any additional work, outside of the original brief, can be charged for. Client costs disputes less likely than with a straight hourly rate. Requirement that firm estimates the maximum work required or builds in a margin for uncertainty.
Any inefficiency reduces profit.
Also overall quality of work could be affected if assigned to less qualified staff, without senior supervision. Decreased profitability if senior staff required for longer than estimated. For client, no win, no payment to client's own solicitor. Allows deserving cases to be heard, with less risk for client. For practitioner, develops business which might not otherwise have been generated.