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How Much Does a NZ Business Lawyer Cost?

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The cost of engaging a business lawyer in New Zealand is often very high. This perception comes from the more common ‘billable hours’ pricing model. However, not all business lawyers charge hourly billable rates in New Zealand. Some firms may use fixed fees or retainers to bill clients. This article explains how business lawyers charge for their services in New Zealand, what you need to know as a client and how to dispute a legal bill.

How Do Business Lawyers Price Their Services? 

When engaging a business lawyer, your first point of contact is typically a lawyer or barrister. Lawyers and barristers operate within sole practices, private practices or regional firms. These businesses can range in size from small firms (up to five partners) to large firms (more than twenty partners). Typically, large firms provide more specialised services and, therefore, charge higher fees. 

Hourly-Rate Lawyer

Traditionally, law firms in New Zealand have charged for their services using an hourly rate pricing model. This is also known as the ‘billable hours’ model. Under this model, you often pay a large bill (depending on the complexity of the work) without receiving a previous estimate of the cost. Your lawyer’s hourly rate can vary depending on their experience, speciality and the law firm’s overheads. On average, prices range from:

  • junior lawyer: $200 – $250 per hour
  • senior lawyer: $250 – $400 per hour
  • practice leader or partner: $400 – $800 per hour

Although this model is common, you should consider whether it is of value to you. More recently, the hourly rate model has been critiqued, as hourly rates are not always a good indicator of value.

Lawyer on Retainer

If you can provide a regular inflow of work throughout the year, a business lawyer at a law firm may agree to charge you a retainer fee. This pricing model is most common amongst large business clients because they can provide a high turnover of work. 

Fixed-Fee Lawyer 

You may be able to pay a fixed fee for specific projects if they involve routine or repetitive work or if your lawyer can easily estimate the amount of work required. One example of such projects is property purchases. However, if you need litigation work, which often takes extensive research and argument preparation, this is less likely.

Fixed fees are more beneficial for your business because you are aware of the full cost upfront when you engage the firm. This provides you with price certainty and transparency. There is a trend towards fixed-fee models, although such firms are still currently limited in New Zealand. 

One efficient way to find cost-effective legal services is by looking up terms such as ‘fixed-fee business lawyer’ online.

How Much Do Fixed-Fee Business Lawyers Cost?

The main benefit of a fixed-fee model is that it provides you with cost certainty and transparency for your legal fees. With a quote for a flat rate, you can easily compare the costs of different legal service providers. The cost of different fixed-fee providers may depend on the type of commercial matter you require assistance with, as well as the amount of work required. As an example, below is LegalVision’s pricing guide for some of the most common fixed-fee matters. 

Type of ProjectCost
Drafting a Privacy Policy$250 + GST
Incorporating a Company$250 + GST
Registering a Trade Mark$750 + GST
Drafting a Letter of Demand$750 + GST
Reviewing a Commercial Lease$1500 + GST
Drafting a Sales Terms and Conditions$1500 + GST
Drafting a Shareholders Agreement$2000 + GST
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Can You Agree on the Cost With Your Lawyer Beforehand?

Your lawyer must inform you upfront of the basis for charging and the process for payment. As a client, you also have consumer rights under New Zealand law. Your lawyer must:  

  • charge you a fair amount;
  • protect and promote your interests;
  • keep you informed; and 
  • treat you with respect. 

If you are unhappy with your lawyer’s service or bill, you can attempt to resolve the matter between yourselves by raising any issues with them. This way, your lawyer must deal with your complaint promptly and fairly. For example, imagine you hire a business lawyer to help you review a commercial lease, but you do not receive any information beforehand about how much this service will cost you. When you get the bill, it has no breakdown of hours or tasks, and the total amount is quite expensive. You may ask your lawyer to explain the charges so that they can send you a detailed invoice with hourly amounts and details of their work. 

However, if you cannot solve the issue, you can also complain about your lawyer to the New Zealand Law Society

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Key Takeaways 

When you engage a business lawyer, you may be charged an hourly rate, fixed fee or retainer for their services, depending on the firm’s pricing model and the type of work. It is important to consider some important factors when selecting which model is right for you, such as:

  • Your ability to predict costs;
  • Availability of different models; and
  • For an hourly rates model, if explaining your issue in more depth will increase your bill. 

The fixed fee pricing model is often better for your business because it provides you with cost certainty and transparency for your legal fees. When you engage a law firm, it is essential to sign a costs agreement, especially if you are paying an hourly rate. This should provide you with an estimate of the fees and how your lawyer arrived at this estimate. Ensure you raise any uncertainties you may have about your bill to your lawyer to avoid confusion or potential disputes. 

If you would like assistance regarding business lawyer costs, contact our experienced business lawyers as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.  

Frequently Asked Questions

How much does a lawyer cost in New Zealand?

The cost of a lawyer will depend on what legal advice you need. Fixed fees can vary from $250 upwards, while hourly rates vary between $200 – $600 per hour.

Should I hire a business lawyer to start a business?

Starting a business can be extremely time-consuming. In most cases, hiring a lawyer and accountant adds a lot of value to your business’s early stages. This depends, of course, on the size and complexity of your business. A good business lawyer will provide vital assistance in almost every aspect of your business, from incorporating your company to registering a trademark or dealing with lawsuits and liability. You can deduct most legal expenses for tax purposes as long as they have a connection with your business activities as the taxpayer.

How do I hire a small business lawyer?

When engaging a business lawyer, your first point of contact is typically a solicitor. Solicitors operate within sole practices, private practices or regional firms. A fixed-fee business lawyer provides you with cost certainty and transparency for your legal fees, and allows you to shop around for legal services easily. You can conduct a search using terms like ‘fixed-fee business lawyer’ to find out if there are any lawyers around you that use this pricing model.

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Jessica Prebble

Jessica Prebble

Senior Associate | View profile

Jess is a Senior Associate at LegalVision New Zealand, specialising in dispute resolution and employment. She has worked in multiple jurisdictions, including Australia and the United Kingdom, and acted for clients in a variety of industries.

Qualifications: Bachelor of Laws, Bachelor of Commerce, University of Wollongong.

Read all articles by Jessica

About LegalVision

LegalVision is an innovative commercial law firm that provides businesses with affordable, unlimited and ongoing legal assistance through our membership. We operate in Australia, the United Kingdom and New Zealand.

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