Costs Agreement Template for Philippines

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Key Requirements PROMPT example:

Costs Agreement

"I need a Costs Agreement for my law firm in Manila, specifically for corporate clients requiring ongoing legal services starting January 2025, with provisions for monthly retainer fees and additional charges for litigation services."

Document background
A Costs Agreement is an essential document in Philippine legal practice that formalizes the financial and professional relationship between legal service providers and their clients. This document is required when engaging legal services, whether for individual matters or ongoing legal support, and must comply with Philippine legal requirements, including the Civil Code, Rules of Court, and the Code of Professional Responsibility. The agreement typically includes detailed fee structures, payment terms, scope of services, and professional obligations. It serves to protect both the legal practitioner and client by clearly documenting the terms of engagement, helping prevent misunderstandings about costs, and ensuring transparency in billing practices. The Costs Agreement should be executed before commencing legal work and updated as needed when scope or terms change.
Suggested Sections

1. Parties: Identification of the law firm/legal practitioner and the client, including full legal names and addresses

2. Background: Context of the engagement and brief description of the legal matter requiring representation

3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty

4. Scope of Services: Detailed description of legal services to be provided and any specific exclusions

5. Professional Fees: Structure and rates of professional fees, including hourly rates if applicable

6. Billing and Payment Terms: Frequency of billing, payment methods, and payment deadlines

7. Disbursements and Other Charges: Details of additional costs and expenses that may be charged to the client

8. Client's Obligations: Client's responsibilities including providing information and instructions

9. Termination: Circumstances and process for ending the agreement by either party

10. Confidentiality: Obligations regarding confidential information and client privilege

11. Governing Law: Specification that Philippine law governs the agreement

12. Execution: Signature blocks and execution details

Optional Sections

1. Conflict of Interest: Used when there's a need to address potential conflicts and how they will be managed

2. Trust Money: Include when client funds need to be held in trust accounts

3. Third Party Costs: Required when other professionals or counsel may need to be engaged

4. Insurance and Liability: Details of professional indemnity insurance and liability limitations

5. Dispute Resolution: Include when specific dispute resolution procedures are desired

6. Electronic Communications: Include when specific provisions about electronic communication and documentation are needed

7. Multiple Clients: Used when representing multiple clients in the same matter

8. Contingency Fees: Include when fees are contingent on outcome (where permitted by Philippine law)

Suggested Schedules

1. Schedule 1 - Fee Schedule: Detailed breakdown of professional fees, hourly rates for different staff levels

2. Schedule 2 - Disbursements Schedule: List of typical disbursements and their standard charges

3. Schedule 3 - Team Members: List of key team members and their roles in providing the legal services

4. Appendix A - Client Information Form: Client details and matter-specific information

5. Appendix B - Verification of Client Identity: Documents required for client identification and verification

6. Appendix C - Scope of Work: Detailed description of the specific legal work to be undertaken

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Relevant Industries

Legal Services

Financial Services

Real Estate

Manufacturing

Technology

Healthcare

Retail

Construction

Mining

Energy

Telecommunications

Transportation

Education

Professional Services

Relevant Teams

Legal

Finance

Compliance

Procurement

Risk Management

Corporate Secretariat

Operations

Executive Leadership

Business Development

Administration

Relevant Roles

Managing Partner

Legal Counsel

Chief Legal Officer

Compliance Officer

Corporate Secretary

Finance Director

Chief Financial Officer

Chief Executive Officer

Legal Operations Manager

Procurement Manager

Contract Administrator

Risk Manager

Business Development Manager

Practice Group Leader

Associate Lawyer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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