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Are requests for proposal (RFPs) becoming the default way that clients instruct law firms for new work?
Thankfully, they are not used in every new instruction – most potential clients still prefer to call us and talk to us first. But RFPs are certainly becoming more commonplace, especially among multinational companies that are looking to reduce the number of law firms they instruct. We are occasionally asked to complete an RFP where a potential client is tending for a major piece of standalone work, such as a large arbitration or M&A deal.
We actually offer companies an RFP template for them to use in the tendering process. Our templates are an amalgamation of the best bits of other RFPs that we have been asked to submit.
What are the worst RFPs you have encountered?
In my opinion, the worst RFPs are the ones sent as an Excel spreadsheet, where you are only asked to complete the details of your firm’s hourly rates. In any RFP, the golden rule for law firms is that you have to answer the questions that are asked, but the “hourly rate” question doesn’t allow you to discuss any alternative billing arrangements that your firm offers. Our firm offers fixed fees and volume discounts, but you can’t include information if you’re only asked about your hourly rates.
We’ve also seen examples of RFPs that are more suited to the US market. In the past, we’ve been asked how many Native Americans or Indians we employ – obviously not that many!
Occasionally, we have encountered situations where organisations have asked us to complete an RFP, even though they have no intention of offering us work. They essentially use the RFP process as a way of benchmarking information about firms’ hourly rates. These days, we’re pretty wise to that activity, and will normally decline to take part.
Besides being asked about your firm’s relevant experience and key personnel, what other information will you typically be asked to supply in your RFP?
Some organisations will also ask us for our diversity statistics, or our pro bono or environmental policies. In some situations, we’ve been asked to supply information that we don’t actually hold, such as the number of gay or transgender partners we employ. We obviously can’t make these figures up, so we just tell clients that this information is not available.
In general, it’s the US clients or those in the public sector that are more likely to ask you for your diversity statistics, but that’s not always the case. We were also asked to complete this information by Akzo Nobel in the Netherlands.
Organisations will often ask about what training your firm offers – for many, that’s essential. Many will want to know about what technology is available, such as client extranets, or access to the firm’s precedents and know-how. We also offer our clients a free helpline, where the first 15 minutes of advice is free.
Once a firm has got beyond the initial RFP stage, are they any tips you would give in-house counsel on how they should arrange subsequent meetings?
Some organisations, especially those in the public sector, prefer to ask the same questions to every firm they interview. Personally, I think it’s better if the counsel and the firm can move to the stage where the interview turns into a two-way conversation as quickly as possible. The counsel should tell the law firm about their company, and the law firm should tell the counsel what services they offer.
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