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Legal Cost Agreement Qld

Legal Cost Agreement QLD: Essential Considerations for Clients

When clients seek legal services, it is crucial to understand the legal cost agreement to avoid any confusion and unexpected costs. In Queensland, legal practitioners are required by the Legal Profession Act 2007 to provide clients with a written cost agreement before starting work on the case. This article aims to provide clients with essential considerations when entering legal cost agreements in QLD.

Understanding the Cost Agreement

A cost agreement is a written document that outlines the legal services to be provided, the fees or charges that will be applicable and the basis upon which these fees will be charged. It is essential to read and understand the cost agreement before accepting the legal services. The cost agreement prioritizes transparency and certainty for both parties, which can reduce any misunderstandings that may arise during the engagement.

Fee Arrangements

Legal practitioners in Queensland may charge clients based on hourly rates, fixed fees, or conditional fees. An hourly rate is whereby a client is charged according to the time spent working on the case. It is essential to understand the minimum billing unit, how time will be recorded, and the hourly rate charged. A fixed fee arrangement is where the legal practitioner agrees to provide services for a specific fee, which is determined in the cost agreement. Clients need to ensure they understand whether the fee will cover all services or only specific tasks. Conditional fees are also known as a „no win, no fee“ arrangement, where a legal practitioner only receives payment for their services if they win the case. In this arrangement, clients need to understand the percentage of the settlement or award that will be charged by the legal practitioner.

Disbursements and Other Costs

Clients should understand that disbursements and other costs may be applicable when engaging legal services. Disbursements refer to the expenses the legal practitioner incurs when providing legal services, such as court filing fees, expert report fees, and travel expenses. Clients need to understand that these disbursements are separate from the legal practitioner`s fees and need to be paid by the client. It is crucial to understand if there is a cap or limit to the disbursements and if the disbursements are charged at cost or a predetermined amount.

Termination of the Cost Agreement

Clients and legal practitioners have a right to terminate the cost agreement. It is essential to understand the conditions under which the cost agreement may be terminated and the consequences of termination. Clients need to understand if they are liable to pay any fees or costs after termination and if they are entitled to a refund of any fees paid.


In summary, when seeking legal services, it is crucial to understand the legal cost agreement, fee arrangements, disbursements, and other costs, and the termination of the agreement. Clients should ask questions and seek clarification if necessary to understand the legal cost agreement before accepting legal services to ensure transparency and certainty in the client-legal practitioner relationship.