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Reading a legal costs proposal before agreeing

Work through a legal fee proposal by checking the client, scope, estimates, expenses, assumptions, changes and questions that need written answers.

By Lawyers by Suburb · Updated
General enquiry preparation. AI-assisted content; independent legal review is not claimed.

General preparation information, not legal advice. Rules and options depend on your circumstances and jurisdiction. Check current official information and speak with a qualified adviser about documents, rights or deadlines.

A costs proposal is easier to compare when you read it as a description of work, responsibilities and money together. A total on its own does not explain what happens next.

A useful starting point

Confirm who the client is, which office is offering the service and who will handle the work.

Describe the task, compare the provider’s fit, then confirm the work and next step.
Describe the task, compare the provider’s fit, then confirm the work and next step.

Check the people and the task

Confirm who the client is, which office is offering the service and who will handle the work. Read the description of the task against what you actually asked for. If the proposal refers to a stage, document or appointment you do not recognise, ask for an explanation. Avoid filling a gap with an assumption that a broad service label includes everything you need.

Identify the pricing method

Ask whether the amount is a fixed fee, an estimate or a calculation based on time, and what assumptions it relies on. Check whether GST and external expenses are included or separate. Do not treat a range as a cap unless the provider confirms that meaning. Ask what information could change the amount and how an updated proposal would be communicated to you.

Read the exclusions carefully

Look for tasks outside the proposal, such as extra document versions, negotiation, attendance or follow-up. Ask what happens if one of those becomes necessary and who must approve further work. A limited engagement can still be useful, but you need to understand the boundary. The provider should explain what remains for you or another adviser to handle rather than leaving that unclear.

Clarify payment and progress

Ask when invoices or payments are expected, what information they contain and how to raise a question. Confirm how progress updates relate to billing. If you receive changed payment details or an unexpected request, verify the message through independently confirmed contact information before acting. An email display name alone does not establish identity; the ASD’s business email compromise guidance explains that risk.

Use an unknown column

For a fictional comparison, Office A may quote a consultation price and Office B a document review plus written advice. Record missing inclusions as unknown, not free. Put the same questions to both providers and update the comparison when they answer. Our quote worksheet supports this preparation, but it does not calculate all possible costs or establish whether a proposal is appropriate for your matter.

Resolve questions before relying on the scope

Keep the written answers with the proposal and ask which version records the final agreement. If terminology or an obligation remains unclear, seek an explanation or independent advice before deciding. This guide does not interpret the legal effect of a costs agreement, decide whether fees are reasonable or explain every jurisdiction’s disclosure rules. It gives you a structured way to identify questions requiring attention.

Questions you might still have.

Does estimate mean maximum price?

Do not assume so. Ask the provider to explain the amount, assumptions and process for changes.

Should blank expenses be treated as zero?

No. Leave them unknown until the provider confirms the position.

Can this page approve a costs agreement?

No. Obtain an explanation and appropriate advice about the actual document and circumstances.

General preparation information, not legal advice. Rules and options depend on your circumstances and jurisdiction. Check current official information and speak with a qualified adviser about documents, rights or deadlines.

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Reading a legal costs proposal before agreeing · Lawyers by Suburb