Setting Up Fixed Fee Arrangements on Matters in LeanLaw

Fixed fee billing lets you charge clients a flat amount for a defined scope of work — regardless of time spent. LeanLaw gives you flexibility in how you structure fixed fees: as a one-time charge, a recurring fee, a completion-based milestone, or a hybrid with hourly overage billing.

Fixed Fee Matter Billing Type vs. Adding Fixed Fees to Any Matter

It's important to understand that fixed fees work two ways in LeanLaw:

Approach	How It Works
Fixed Fee billing type on the matter	Set the matter's billing type to Fixed Fee in Settings. Time entries on this matter default to non-billable — time is tracked internally but is not invoiced. Fixed fee charges are the primary billing vehicle.
Fixed fee charge added to an hourly matter	Any matter — regardless of billing type — can have a fixed fee charge added to it. This is common for hybrid billing: e.g., a flat fee for a specific task within an otherwise hourly matter, or a monthly retainer alongside tracked hours.

💡 Tip: You don't have to set a matter to 'Fixed Fee' billing type to use fixed fees. Fixed fee charges can be added to hourly matters too — giving you maximum flexibility for hybrid billing arrangements.

Configuring a Matter for Fixed Fee Billing

To set a matter's primary billing type to Fixed Fee:

Open the matter from the Matters tab.
Navigate to the Access & Billing or Billing and Rates section of the matter.
Set the Billing Type to Fixed Fee.
Save the matter.

With Fixed Fee billing type set:

New time entries on this matter default to non-billable (hours tracked but not invoiced).
You can manually mark individual time entries as billable if needed (e.g., for overage billing).
Fixed fee charges — not time entries — drive the invoices for this matter.

Types of Fixed Fees in LeanLaw

Fixed Fee Type	Best For
Standard Fixed Fee	A one-time flat charge with a specific billing date. Common for defined-scope engagements: estate planning packages, business formation, flat-rate consultations.
Recurring Fixed Fee	A flat charge that repeats on a schedule (monthly, quarterly, or yearly). Set a start date, end date, or total count. Common for ongoing legal counsel, subscription-based services, monthly retainers.
Completion-Based Fixed Fee	A flat charge that must be manually marked 'completed' before it can be invoiced. Ensures fees are only billed once the work is fully delivered. Common for phased litigation services, milestone-based projects.

📋 Completion-Based vs. Standard: The key difference is the billing trigger. A standard fixed fee bills on a date. A completion-based fixed fee bills only after you mark it complete — giving you control over when each milestone is invoiced.

How Time Works on Fixed Fee Matters

Even when a matter is set to Fixed Fee billing, attorneys can and should still track their time. This time serves two purposes:

Profitability analysis: Hours tracked vs. the fixed fee charged reveal whether the fee is profitable. See Article 4 in this collection.
Hourly limit overages: If you set an hourly limit on the fixed fee, hours beyond the limit can be billed hourly — providing a safety net for scope creep.

💡 Tip: Encourage timekeepers to log time on fixed fee matters even when it won't be invoiced. The profitability data is essential for reviewing and adjusting your fixed fee pricing over time.

Hourly Limits on Fixed Fees

When creating a fixed fee charge, you can set an Hourly Limit — the maximum number of hours included within the flat fee. If the matter exceeds that limit:

Hours up to the limit are considered part of the fixed fee (non-billable).
Hours beyond the limit become additional billable time and appear in the billing queue separately.
You can set a Limit Rate — a specific hourly rate (often discounted) that applies to overage hours.