“Most law firms say they use the billable hour model for pricing most of their work, but the reality is different, according to a new report. Largely because of budgets and caps imposed by clients, 80 to 90 percent of law firm work is done outside of the traditional billable hour model, according to the 2017 Report on the State of the Legal Market. The report was released by Georgetown Law’s Center for the Study of the Legal Profession and Thomson Reuters Legal Executive Institute….The demise of the billable hour was largely overlooked because of a definitional problem, the report says. Pricing models that used billable hours were considered business as usual, and different from alternative fee arrangements based on fixed-price or cost-plus models.”
Read: Billable hour pricing is effectively dead because of budget caps, report says at ABA Journal – Daily News