Onit's Hourly Capped Fee Arrangement feature allows clients to easily set limits on the standard hourly fee arrangements. Here, we will take you step-by-step through using the Hourly Capped Fee Arrangement option.
Using Hourly Capped Fee Arrangements
1. After communicating with the vendor and deciding on an appropriate amount for the Hourly Capped Fee Arrangement, go through the usual Vendor Assignment to Matter process.
2. After selecting the Vendor and Invoice Currency, select Hourly Capped on the Fee Arrangement drop-down menu.
3. Fill in the agreed-upon Fixed/Capped Fee field. Note that this amount should be in the Invoice Currency indicated on the form.
4. Make your choices for the rest of the VATM options and click Save or Save and Create Budget on the bottom of the screen to advance.
From there, the vendor will bill hourly as usual. However, if/when the vendor exceeds that capped amount on an invoice, you can set up billing rules (at implementation) to either:
- Fail the invoices
- Adjust the invoices to zero
- Put a warning on the invoice so you can deal with the excesses on a case-by-case basis.
NOTE: The capped amount is not treated as a floor - for example, if the capped amount was $50,000, and the vendors total was only $45,000, the $5,000 difference is NOT automatically added to the vendors total.
To adjust the Fixed/Capped Fee amounts after the VATM process has begun, click into the Financial tab on the matter and click on Edit at the bottom of the screen.
Make any necessary changes and click Update at the bottom of the screen.
