Appendix D: Standard Outside Counsel Billing Guidelines (OCBG) Template

Purpose

This template provides a comprehensive starting point for organisations developing or updating their Outside Counsel Billing Guidelines. Adapt the specific thresholds, rates, and requirements to your organisation's context. The template is designed to be enforceable through an e-billing platform, with each section mapping to configurable validation rules.

Template: Outside Counsel Billing Guidelines

1. General Principles

1.1. These Guidelines apply to all legal services provided to [Organisation Name] ("the Company") by external law firms and legal service providers ("Firms").

1.2. By accepting an engagement with the Company, the Firm agrees to comply with these Guidelines. All invoices that align with these Guidelines will be processed for payment; invoices requiring clarification will be returned for correction with specific guidance.

1.3. These Guidelines supplement, and do not replace, the terms of the engagement letter between the Company and the Firm.

2. Rate Structures and Approvals

2.1. Approved Rate Cards. All Firms must submit an annual rate card for Company approval before 1 January of each calendar year. Rates not approved in writing by the Company's Legal Operations team are not authorised.

2.2. Rate Increases. Annual rate increases are subject to Company approval and should be limited to [X]% per year. Proposed increases above this threshold require prior written authorisation for processing.

2.3. Timekeeper Approval. All timekeepers billing to Company matters must be identified by name, title, and approved rate. New timekeepers must be approved by the Company before their time is billed.

2.4. Blended Rates. Where a blended rate arrangement is agreed, the blended rate applies to all timekeepers regardless of seniority. The Firm may not exceed the blended rate by substituting senior timekeepers without prior approval.

3. Billing Requirements

3.1. Billing Codes. All invoices must use UTBMS (Uniform Task-Based Management System) task and activity codes for streamlined processing and audit compliance. Invoices requiring UTBMS coding will be returned with guidance for correction.

3.2. Time Increments. Time must be recorded in precise increments of [0.1 / 0.25] hours, with each task documented separately to enable accurate tracking and reporting.

3.3. Narrative Requirements. Each time entry must include a detailed narrative description that identifies: the specific task performed, the document or matter component involved, and the outcome or purpose. Detailed narratives such as "analyzed discovery requests for relevance assessment and responded to three requests within scope" enable efficient invoice processing and accurate billing review.

3.4. Invoice Frequency. Invoices are processed most efficiently when submitted monthly, within [30] calendar days of the end of the billing period. Invoices submitted beyond [60] days after the billing period may require re-submission with updated supporting documentation.

3.5. Invoice Format. All invoices should be submitted electronically through the Company's e-billing platform in LEDES 1998B or LEDES 2000 format. Electronic submissions enable automated processing, faster payment, and real-time tracking capabilities.

4. Staffing Requirements

4.1. Staffing Efficiency. The Firm must staff matters at the lowest appropriate level of seniority. Partner time should be reserved for tasks requiring partner-level judgment. Associate time should not be billed for tasks that can be performed by paralegals or support staff.

4.2. Conference and Meeting Attendance. Optimal staffing for meetings and court appearances is [2] or fewer Firm timekeepers. Requests to bring additional staff require prior Company approval to ensure efficient resource allocation.

4.3. Supervision Time. Reasonable supervision is expected. However, time billed by a supervising lawyer for reviewing work they could have performed more efficiently themselves is subject to reduction.

4.4. Staffing Changes. Material changes to the staffing of a matter (replacement of lead lawyer, addition of new practice groups) require prior written approval from the Company's matter lead.

5. Expense Policies

5.1. Pre-Approval Thresholds. Any single expense exceeding $[500] requires prior written approval from the Company to ensure cost control and budget alignment. Approved expenses are processed promptly for reimbursement.

5.2. Travel. Travel expenses are reimbursable as follows: economy class for flights under [4] hours, business class for flights over [4] hours, and hotel expenses at reasonable rates (Company standard: $[X]/night maximum). Ground transport reimbursement covers standard taxi or rideshare services, supporting cost-effective travel practices.

5.3. Meals. Meal expenses are reimbursable up to $[X] per person, covering business meals for client and team engagement.

5.4. Reimbursable Expenses Guidelines. The Company reimburses direct matter-related expenses including: external vendor services, client travel, and specialized tools. The following are covered by firm overhead and are handled internally: firm library and IT systems, photocopying at standard rates, administrative support, and non-authorised rush service premiums.

5.5. Technology Expenses. Charges for third-party technology tools (e-discovery platforms, AI tools, data rooms) require prior Company approval. The Firm must provide a cost estimate and justification before incurring the expense.

6. Budget and Accruals

6.1. Matter Budgets. For any matter with an estimated total cost exceeding $[25,000], the Firm must provide a detailed budget at the commencement of the engagement, segmented by phase and task category. Material deviations from the approved budget (>[15]%) require immediate notification to the Company.

6.2. Accruals Reporting. The Firm must submit a monthly work-in-progress (WIP) report for all active matters by the [5th] business day of the following month. The WIP report must state the total unbilled fees and disbursements for each matter.

6.3. Budget Updates. The Firm must provide a revised budget whenever the matter scope changes materially or when actual costs reach [75]% of the approved budget.

7. Alternative Fee Arrangements

7.1. The Company encourages Alternative Fee Arrangements (AFAs) for appropriate matter types. AFAs may include fixed fees, capped fees, success fees, portfolio pricing, or hybrid arrangements.

7.2. All AFAs must be documented in writing before work commences, including: the scope of work covered, the fee structure and amount, the process for handling out-of-scope work, and the conditions under which the AFA may be renegotiated.

7.3. The Company reserves the right to require AFAs for any matter type where historical data supports predictable scoping.

8. Compliance and Enforcement

8.1. Automated Enforcement. These Guidelines will be enforced through the Company's e-billing platform. Invoices that violate these Guidelines will be automatically flagged for review.

8.2. Dispute Resolution. If the Firm disagrees with a guideline-based invoice adjustment, it may submit a written explanation within [15] business days. The Company's Legal Operations team will review and respond within [10] business days.

8.3. Compliance Reporting. Guideline compliance rates will be tracked by Firm and reported as part of the Quarterly Business Review process. Persistent non-compliance may affect future work allocation and panel status.