Outside Counsel Guidelines Decoded: What Corporate Clients Actually Want

What Are Outside Counsel Guidelines?

Outside Counsel Guidelines (OCGs) are rules corporations establish for their law firms. These documents govern everything from billing practices to staffing requirements.

Violating OCGs leads to reduced payments, damaged relationships, and lost business.

Common OCG Requirements

Billing Rules

• Rate caps: Maximum hourly rates by timekeeper level
• Task restrictions: No billing for certain administrative tasks
• Staffing limits: Partner ratio requirements
• Block billing prohibition: Itemize all entries

Approval Requirements

• Pre-approval for expenses over thresholds
• Budget approval before starting work
• Staffing change notifications
• Expert witness approval

Reporting Obligations

• Monthly status reports
• Budget variance explanations
• Matter milestone updates
• Early warning alerts

Non-Billable Activities

Most OCGs prohibit billing for:

• File organization and management
• Internal administrative conferences
• Travel time (or reduced rate)
• Timekeeper training
• Proofreading by support staff
• File transfer between offices

Rate Structures

Rate Caps

Most guidelines set maximum hourly rates by timekeeper level, with separate caps for partners, associates, and paralegals, and require written approval before any increase. The caps vary widely by client, industry, and market, so treat each client's schedule as its own rule set.

Alternative Fee Arrangements

Many clients prefer:

• Fixed fees for defined work
• Capped fees with ceiling amounts
• Success fees tied to outcomes
• Blended rates across all timekeepers

Learn more about alternative fee arrangements.

Compliance Strategies

Before Engagement

1. Obtain and review full OCG document
2. Configure billing system with client rules
3. Train assigned timekeepers
4. Clarify ambiguous provisions

During Matter

1. Monitor budget vs. actual
2. Request pre-approvals promptly
3. Document all exceptions
4. Communicate proactively

At Billing

1. Pre-bill review against OCG
2. Flag potential issues
3. Submit in required format
4. Respond to queries promptly

Technology Solutions

Modern billing systems can:

• Store OCG rules by client
• Auto-flag violations during entry
• Generate compliant invoices
• Track approval workflows

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