Unbundled services

Unbundled services

This subtopic provides key information for law firms on what they need to consider when offering advice services to clients on an unbundled or Pay As You Go (PAYG) retainer.

Risks of unbundling services

The risks of unbundled services, and in particular with a PAYG system, stem largely from misunderstandings between the client and the firm as to the scope of the retainer.

There can be an increased risk of professional negligence and/or misconduct arising from the fee earner:

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having an insufficient knowledge of the client’s position
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failing to ensure the client is fully aware of the limitations of the services being offered, and/or
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unwittingly, by their actions or omissions, creating a full retainer with the client (and thereby accepting the level of liability that would necessarily be implied

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