Time Breakdowns and Third Party Billing

[James Sutlow]

I’m looking for perspective on how other firms handle time breakdowns provided with invoices. Specifically, do you typically provide a full chronological narrative of tasks for every bill, and do you differentiate this level of detail when billing a client versus a third party?

We are seeing an increase in requests for granular breakdowns from third parties, but we are hesitant to provide details that essentially allow them to calculate our hourly rates. Our concern is that this data could be used by competitors to undercut us. How are your firms balancing the need for transparency to ensure a bill gets paid against the desire to protect sensitive commercial data?

[Geoff Smith]

I’m wondering why third parties are seeking this information?
Having said that – my view would be that you don’t have to provide the information.
Your relationship is with your client and, presumably, you would have set out (and updated as the case progresses) your charging rates.
If the third party wants the information they can ask your client who can, if they so wish, provide the information.
Of course, in any event, the total on an invoice would not necessarily equate to the charging rate especially if it covers a number of fee earners at various levels (and therefore charging rates) and also covers different periods between changes in rates.

And one final thought – does GDPR prevent this information being shared?

[Andrew Mifflin]

Third party payable invoices – are always done at Summary level at our firm, no details are provided as essential paying an agreed fee normally on our clients behalf.

[James Sutlow]

Sorry, poorly worded on my behalf, as Andrew says, invoices payable by a third party who will have given an undertaking.

What is covered by your summary? We have tried dates and narrative (with no financials/hours) but still had pushback/queries on occasions. I agree there should be nothing to quibble if they have given an undertaking.

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