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There are a raft of costs difficulties to consider, particularly in relation to contentious business; the indemnity principle; assessment of costs and recoverability under the respective tracks; champerteous arrangements, etc., to name a few. This model can only work if clients are pre-warned and are prepared to take the rough with the smooth. For example, is a client prepared to pay the same fixed fee if a simple (although detailed) letter before action produces a final result, as distinct to taking a case all the way through to trial? If one size fits all, to ensure we keep our heads above water, some clients will inevitably pay for a service they did not receive in order to offset those cases that descend into an entire loss leader. If this were not the case, the picture of rats from s sinking ship rather springs to mind! To be anything other than remotely workable, fixed fees have to be very carefully structured and managed.

Interestingly, I believe that a fixed fee can be paid straight into office account on day one rather than held in client account until a bill has been rendered. With the caveats above, this may well assist cash flow in the short term!