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Arrangements

Fee Arrangements capture the essence of the deal between firm and client. The Arrangements module stores payment term information, which includes firm-wide fee arrangements (standard rates) as well as those tailored only for a particular client or matter. Umbria Fee Arrangements track the following:

Fee type
Rate card
Additional discounts (bottom-of-the-bill)
Volume discount
Billing rules
Payment terms
Staff rules
Expense rules
Budget reporting
Targets

Each client should have a default fee arrangement. A new pricing model created in Umbria should default to that arrangement. Access the Arrangements module from the User drop-down menu located on the Umbria homepage.

Search and Display Options

When first accessing the module, all created fee arrangements appear by default.

Click the drop-down arrow next to Arrangement Level to choose to view fee arrangements by: Any, Firm, Client, or Imported Matter Rate Cards.

You can also search for a specific arrangement based on the following filters: Client, Matter, Firm Fee Type (Collar, Contingency, Fee Cap, Fixed, Hourly (Standard), Partial Contingency (Hourly), Partial Contingency (Non-Hourly), Recurring Fee Cap, Recurring Fixed Amount (Retainer), and Name.

Saved Searches

To save a search:

After entering criteria on the Search tab or on the Advanced Search window, click the Save button.
On the Please name this search pop-up window, enter a name for the search and click OK.

To use a saved search:

On the navigation pane on the left side of the screen, click the Saved Searches tab. Here you see a list of system default and custom saved searches.
Click on a search to view the corresponding results.

To delete a search:

On the Saved Searches tab, hover your cursor over a custom saved search so that it appears highlighted and an X displays to the right of it.
Click the X. Click OK on the confirmation message window to delete the search.

Search Results

The Arrangements list includes the following information:

Field	Description
Name	Name given to the fee arrangement.
Level	Indicates whether arrangement is at firm, client, or matter level. If it is client or matter level, shows matter/client name and provides a link to the matter/client record.
Type	Fee arrangement type, with fee arrangement sub-type in parentheses.
Status	Shows as Active if the current date falls between the fee arrangement's start date and expiry date.
Start Date	Date the fee arrangement becomes effective.
Expiry Date	Date on which the fee arrangement is no longer valid.

Arrangement Types

Hourly

Type	Description
Standard	A billable hour arrangement
Fee Cap	A maximum fee on the matter or phase
Recurring Fee Cap	A maximum fee on a recurring basis. Either Monthly, Quarterly, 6 Months, or Annually.
Collar	A range where the fee will be fixed. If the fees come below the range, then the firm may receive a bonus and if the fee exceeds the range, then additional services are provided at a discount.
Partial Contingency	There are two type of partial contingency: (1) fee based and (2) outcome based. A fee-based partial contingency is where the firm agrees to do the work at a discount and then receives a bonus if the matter succeeds and optionally, an additional discount if it fails. Another flavor of partial contingency is where the contingent fee amount is shown on the invoice as an additional discount (called a Holdback). The client does not pay the contingent amount until end of matter. The Outcome-based arrangement is when the firm receives a part of the recovery or part of the savings. The hourly work is typically done at a discount.

Partial Contingency (Hourly/Non-Hourly)

The amount charged is dependent on the success of the matter.

This can be based on strict success or failure of the matter, or you can select Stair Stepped if multiple levels of success or failure can be defined.
For the Basis of Contingency field, select one of the following:

Fees: The client receives a discount if the matter fails and/or must pay a bonus to the firm if it succeeds. If applicable, select Yes for Bust/Abort Discount.

Select a Type of Penalty Discount, Penalty Discount Amount, or Penalty Fee Amount and enter the corresponding percentage or amount. If you selected Stair Stepped, you can enter multiple fee ranges and specify a discount for each, as well as the probability of each outcome.

Outcome (recovery, savings and deal size): The firm receives a part of the savings/recovery upon successful completion of the matter.
If applicable, select Yes for Success Premium. Select a Type of Success Holdback (discount), Success Premium, Success Premium Amount, or Success Fee Amount and enter the corresponding percentage or amount. (A success holdback is shown on bills as a discount until the successful completion of the matter, at which point the client is charged.) If you selected Stair Stepped, you can enter multiple fee ranges and specify a premium for each, as well as the probability of each outcome.

Outcome: The firm receives a part of the savings/recovery upon successful completion of the matter.
If applicable, select Yes for Success Premium.

Select a Type of Success Holdback (discount), Success Premium, Success Premium Amount, or Success Fee Amount and enter the corresponding percentage or amount. (A success holdback is shown on bills as a discount until the successful completion of the matter, at which point the client is charged.) If you selected Stair Stepped, you can enter multiple fee ranges and specify a premium for each, as well as the probability of each outcome.
From the Expenses payor drop-down, choose Client pays all expenses, Client pays up to x amount, or Firm pays expenses.
If the client is paying expenses, in Client reimburses firm out of recovery, select Yes or No. For the How are expenses calculated field, select Expenses will be deducted from outcome amount and then fees are calculated or Fees will be calculated from outcome and then expenses will be paid from remainder.

Non-Hourly

Type	Description
Fixed Fee	An agreed upon amount
Partial Contingency	The firm is receiving some payments for its fees and otherwise, typically this includes a payment schedule through the life of the matter. Then there is bonus amount dependent which rewards on a percentage of the outcome, fee bonus based on amount of fixed fee or a certain amount. There can also be an additional discount if the matter does not succeed. The primary difference between the hourly version and the fixed fee version is providing a certainty of amount on the non-contingent portion of the fee.
Recurring Fee Cap	When a fixed fee amount is recurring
Contingency	The firm's compensation depends on the success of the matter.

Sub-Type information for Hourly & Non- Hourly Fee Type:

Type	Sub-Type	Displayed Fields for Sub-Type Selection
Hourly: (Select one of the options)	Standard: The client is charged for each hour that a resource works on the matter.
	Fee Cap: The client is charged for each hour that a resource works on the matter, but a maximum amount of fees is set.	Sharing Option: Select either of the option: Share amount proportional to phase budget: The Fee Cap amount will be allocated proportionately to each phase, in ratio of the estimated effort. Repeat Amount for each phase: The Fee Cap amount will be repeated for each of the phases. Amount field: The client will not be billed for an amount in excess of the fee cap.
	Recurring Fee Cap: The client is charged for each hour that a resource works on the matter, but a fee cap (entered in the Amount field) is set	Sharing Option: Select either of the option: Share amount proportional to phase budget: The Fee Cap amount will be allocated proportionately to each phase, in ratio of the estimated effort. Repeat Amount for each phase: The Fee Cap amount will be repeated for each of the phases. Amount field: The client will not be billed for an amount in excess of the fee cap. The client will not pay more than this amount during the time period (Recurrence) specified. For example, if you enter a Recurrence of Monthly and an Amount of 5,000, the client will not pay more than 5,000 in any month even if the worked hours exceed that amount.
	Collar: A range above and below the budget.	Sharing Option: Select either of the option: Share amount proportional to phase budget: The Collar amount will be allocated proportionately to each phase, in ratio of the estimated effort. Repeat Amount for each phase: The Collar amount will be repeated for each of the phases. Agreed Fee: A base amount is entered. In a "collar up" agreement, the client is not charged for any amount in excess of the budget amount until the fees exceed a certain percentage above the budget amount (the Top Collar). An Over Budget Rate Discount can be specified for this instance. In a "collar down" agreement, a bonus is charged if the fees end up being a certain percentage (the Bottom Collar) below the budget. Use the Below Budget Bonus field to specify a percentage of the difference between the actual fees and the budgeted amount; this will comprise the bonus amount.
Hourly & Non-Hourly	Partial Contingency: The amount charged is dependent on the success of the matter.	Sharing Option: Select either of the option: Share amount proportional to phase budget: The Partial Contingency amount will be allocated proportionately to each phase, in ratio of the estimated effort. Repeat Amount for each phase: The Partial Contingency amount will be repeated for each of the phases. This can be based on strict success or failure of the matter, or you can select Stair Stepped if multiple levels of success or failure can be defined. For the Basis of Contingency field, select one of the following: Fees: Enter the fixed fee amount for the matter. If applicable, select Yes for Bust/Abort Discount. Outcome (recovery, savings and deal size): The firm receives a part of the savings/recovery upon successful completion of the matter. Select a Type of Penalty Discount, Penalty Discount Amount, or Penalty Fee Amount and enter the corresponding percentage or amount. If you selected Stair Stepped, you can enter multiple fee ranges and specify a discount for each, as well as the probability of each outcome. If applicable, select Yes for Success Premium. Select a Type of Success Holdback (discount), Success Premium, Success Premium Amount, or Success Fee Amount and enter the corresponding percentage or amount. (A success holdback is shown on bills as a discount until the successful completion of the matter, at which point the client is charged.) If you selected Stair Stepped, you can enter multiple fee ranges and specify a premium for each, as well as the probability of each outcome. Outcome: The firm receives a part of the savings/recovery upon successful completion of the matter. If applicable, select Yes for Success Premium. Select a Type of Success Holdback (discount), Success Premium, Success Premium Amount, or Success Fee Amount and enter the corresponding percentage or amount. (A success holdback is shown on bills as a discount until the successful completion of the matter, at which point the client is charged.) If you selected Stair Stepped, you can enter multiple fee ranges and specify a premium for each, as well as the probability of each outcome. From the Expenses payor drop-down, choose Client pays all expenses, Client pays up to x amount, or Firm pays expenses. If the client is paying expenses, select Yes or No for Client reimburses firm out of recovery. For the How are expenses calculated field, select Expenses will be deducted from outcome amount and then fees are calculated or Fees will be calculated from outcome and then expenses will be paid from remainder.
Non-Hourly	Fixed Fee: The client is charged an agreed-upon amount regardless of hours worked.	Amount: The agreed-upon amount client is charged.
	Recurring Fixed Amount (Retainer): The client is charged an agreed-upon amount each month, quarter, six months, or year.	Recurrence: The recurrence (Monthly, Yearly, Quarterly, 1/2 yearly) that a client will be charged the fixed amount. Amount: The fee that the client is charged on a recurring basis Sharing Option: Select either of the option: Share amount proportional to phase budget: The Recurring Fixed Amount will be allocated proportionately to each phase, in ratio of the estimated effort. Repeat Amount for each phase: The Recurring Fixed Amount will be repeated for each of the phases.
	Contingency: The client pays only if the matter is successful.	One of two Types : Reward Percentage or Recovery Amount. For Reward Percentage, enter the percentage of the amount awarded that should be paid to the firm. For Recovery Amount, enter the estimated amount that should be paid in the Est. Settlement/Judgement field. From the Expenses payor drop-down, choose Client pays all expenses, Client pays up to x amount, or Firm pays expenses. If the client is paying expenses, select Yes or No for Client reimburses firm out of recovery. For the How are expenses calculated field, select Expenses will be deducted from outcome amount and then fees are calculated or Fees will be calculated from outcome and then expenses will be paid from remainder.