ABSTRACT

In the simulation a client challenges a professional law firm for increasing fees for professional legal services in conditions where competition among law firms is increasing and clients are concerned. The cost overruns are becoming too frequent and also that annual and unexpected increases in fees are generally adding to costs. Disputable invoices for intangible professional services – especially if these increases are merely posted and not explained properly – arouse suspicion on the part of the client who is faced with other mounting costs and increasing workloads. One remedy is to put legal and accountancy services out to tender on an annual basis, but these risks discontinuities in the quality of professional advice from firms because of their lack of familiarity with a client's business. This simulation was prepared originally for a global accountancy firm and most of its partners went through negotiation courses using it, as did many partners of other firms.