Worked Estimates and Checklists
Comparing lawyer quotes: a worked example with the arithmetic shown
How to line up estimates from two or three Australian law firms on the same scope, adjust for rates, units, disbursements, caps and GST, and pick on total cost and risk.
To compare lawyer quotes fairly, make sure every firm is pricing the same scope, convert every figure to the same basis (including GST, with disbursements separated), then compare three numbers: the expected total, the high case if the matter grows, and what each firm does when its estimate is exceeded. The lowest hourly rate often loses once hours, staffing and exclusions are priced in, and a capped or fixed fee can be cheaper even at a higher rate.
This guide is part of how to estimate legal costs. The firms and figures below are illustrative, not real quotes.
Step 1: write one scope and send it to every firm
Quotes differ most when firms guess different scopes. Write a short scope and ask each firm to quote against it. Example: you run a small cafe and a former supplier is suing you for $42,000. Scope:
- Review the claim and documents, advise on the defence
- Prepare and file a defence
- Attend one mediation
- Estimate separately for a two-day hearing if it does not settle
Ask each firm for professional fees per stage, disbursements per stage, the rate of each person, the time unit and the GST treatment.
Step 2: lay the quotes side by side
| Item | Firm A | Firm B | Firm C |
|---|---|---|---|
| Structure | Hourly | Hourly with stage caps | Fixed fee to mediation, then hourly |
| Main rate | $380 ex GST | $460 incl. GST | Fixed $9,900 incl. GST to end of mediation |
| Estimated hours to mediation | 20 to 28 | 18 to 24, capped at $10,120 | n/a |
| Disbursements to mediation | "As incurred" | $1,650 incl. GST | $1,980 incl. GST |
| Hearing estimate | $22,000 to $30,000 plus counsel | $24,000 to $28,000 incl. counsel | $26,000 to $32,000 incl. counsel |
| Time unit | 6 minutes | 6 minutes | n/a until hearing |
Step 3: convert everything to the same basis
Firm A quotes ex GST. Convert: $380 x 1.1 = $418 an hour including GST.
To the end of mediation:
- Firm A: 20 x $418 = $8,360 to 28 x $418 = $11,704. Disbursements unknown; ask. Assume $1,650 to match B: $10,010 to $13,354.
- Firm B: 18 x $460 = $8,280 to 24 x $460 = $11,040, but capped at $10,120. Plus $1,650: $9,930 to $11,770.
- Firm C: $9,900 + $1,980 = $11,880, fixed.
Through a hearing (adding the hearing estimates):
- Firm A: $10,010 + $22,000 = $32,010 to $13,354 + $30,000 = $43,354, plus counsel, which A excluded. If counsel is $13,200 for two days and preparation, the range becomes $45,210 to $56,554.
- Firm B: $9,930 + $24,000 = $33,930 to $39,770 (counsel included).
- Firm C: $11,880 + $26,000 = $37,880 to $43,880 (counsel included).
Step 4: read the result
| Path | Cheapest expected | Most certain |
|---|---|---|
| Settles at mediation | Firm B (low $9,930, high $11,770 because of the cap) | Firm C (fixed $11,880) |
| Goes to hearing | Firm B | Firm B (narrowest range) |
Firm A had the lowest rate but the highest totals once GST and counsel were added. Firm C's fixed fee is attractive if you value certainty. Firm B wins on these numbers, as long as its stage cap really covers everything in the scope. Check that in the costs agreement.
You can repeat the hourly arithmetic for any firm in the hourly fee estimator.
Step 5: compare what is not in the numbers
| Question | Why it matters |
|---|---|
| Who will actually do the work? | A low blended rate means little if a partner does everything |
| What happens at the cap or estimate? | Stop work, re-estimate, or absorb? |
| How often will you be billed? | Monthly bills help you spot blow-outs |
| Interest on unpaid bills | Rate and start date |
| Experience in this court and area | Fewer hours, better settlement advice |
| How they communicate | Unnecessary calls and emails are billed |
| Estimate of recoverable and adverse costs | Required in full disclosures for litigation |
A firm that refuses to give an estimate in writing, or gives one with no assumptions, is harder to hold to account.
Step 6: negotiate and decide
You can show one firm's structure to another and ask whether they can offer a cap or a fixed fee for a stage. You do not need to disclose the other firm's name. Once you decide, check the costs agreement with the costs agreement checklist and read costs disclosure rules so you know what updates to expect.
Frequently asked questions
Is it normal to get more than one quote from lawyers?
Yes, particularly for litigation and larger transactions. It is less common for urgent matters, where time matters more than price.
Can a firm charge me for preparing a quote?
Most firms give an estimate after an initial meeting without charging separately, but if the meeting itself is charged, that cost applies. Ask before booking. See the first consultation checklist.
Should I always choose the cheapest quote?
Not if the cheaper firm lacks experience in the court or area of law. Fewer hours from an experienced lawyer and better settlement advice can save more than a lower rate.
Sources
- Victorian Legal Services Board + Commissioner — how lawyers charge and questions to ask
- Office of the Legal Services Commissioner (NSW) — costs agreements and estimates
- Legal Services Council — the Uniform Law costs disclosure rules
- Queensland Law Society — finding a lawyer in Queensland
