Anonymous tendering of legal services worldwide

25 February 2013

Providing market prices for legal services by using a tender system whereby the client is identified after first bidding round.

Over centuries, lawyers have been retained by clients on the basis of trust. The inequality of arms between the lawyer and the client resulted in very costly services and therefore a reduction of people who can afford access to justice. By tendering legal services an element of competitiveness was introduced. By adding the anonymous tendering, a further degree of competition was achieved. The model makes it more difficult to apply the common practice of “reputation billing”, i.e. demanding higher fees if the client has a strong brand name.

Anonymous tendering requires the services of a third party. It also requires describing the legal services in a disguised fashion. Savings are realised vis a vis the benchmark which can be either historic (client always paid amount X for certain services) or actual (client received a quote for certain services), or hypothetical (highest bid in first bidding round).

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