Nine out of ten law firms are facing pressure from clients to reduce costs and use different billing arrangements, according to a survey of 200 partners by litigation funder, Harbour
Moreover, clients are taking nearly twice as long to pay bills than the same time in 2020, with the average rising from 23 to 39 days (51 days for firms working in property, construction and environmental law).
Some 40% intend to lower overheads in response while 37% are investing in legal technology. Firms intend to make more use of conditional fee arrangements and litigation finance in the next 12-18 months.
Ellora MacPherson, Chief Investment Officer at Harbour, said: ‘This survey shows that all but the very largest law firms have been grappling with downward cost pressures, enduring in many cases beyond the pandemic.’
