Reviewing a Proposal
The first step to making it "official"
The proposal
Once lawyers know they'd like to work with a potential client, it's time for them make a formal proposal.
Contents of a Proposal
A proposal will consist of the following items (see descriptions below)
A description of the services the lawyer plans to provide. While most fractional GCs will be generalists with specific areas of emphasis, they should set expectations here based on any prior conversations with you.
Type of billing arrangement. If they plan to charge a cash-based fee for their services, they'll indicate whether they charge hourly or monthly. There may be a mix, and they have flexibility when it comes time to scoping work, billing and invoicing. However, it's important for both sides set expectations at the outset.
Estimated hours of work per month. It's important to align on expected hours so that both sides are aware of (a) the hourly commitment, the (b) the expected cost of services. However, remember that this is an estimate, and things may change throughout the agreement. Stay in close contact with your engaged lawyer so you can calibrate based on needs.
Proposed hourly rate.
Any equity component to the proposal. If both sides plan to have an equity-based component to your proposal, they'll need to input the following information:
Percentage of equity
Vesting Period (in years)
Vesting Cadence
Monthly (most common)
Quarterly
Yearly
Vesting Cliff
None
3 months (most common)
6 months
1 year
Agreeing to the Platform Engagement Agreement
By submitting a proposal, both sides are agreeing to the Platform Engagement Agreement. See for more information.
Asking for Changes Before Accepting the Proposal
Lawyers will be able to edit your proposal up until the prospective client accepts the proposal. You may communicate with the lawyer using the messaging feature if you'd like them to modify the proposal in any way!
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