The Survey of Legal Practices in Scotland - The Cost of Time Survey
Summary of the Cost of Time Survey for 2009
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This year 233 firms took part which represents 19% of Scottish legal firms
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The firms recorded total fee income of £274.5 million of which an estimated £88 million was in respect of court work (£16 million from legal aid work)
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The10 firms of 10 or more partners had the same aggregate income as the other 223 firms combined
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The average hourly expenditure rate was £140.24 down by 4% from last year's £146.28
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The reason for the lower hourly expense rate was lower than anticipated salary costs across the profession due to short time working and redundancies
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The forecast is that the rate is likely to reduce further in the 2010 survey as the full impact of reduced overheads is felt
The full report on the 2009 Survey can be read from the related file on the right.
The Society conducts the annual Cost of Time and Benchmarks Survey, which now contains significantly more information than just the cost of time and is carried out independently by Dr. John Pollock of Pollock & Galbraith, Consulting Actuaries in Stirling. As the Society withdrew the Table of Fees in 2005 no recommended fees follow the survey although the historical information it provides about the cost of running the average practice remains highly relevant. For firms that take part the benefits include:
1. CPD
3 hours Management CPD will be credited to the partner who completes the form.
2. AN INDIVIDUAL REPORT
Each firm taking part will receive a specific report in an easy to read A4 style with explanatory notes. Dr. Pollock also offers the facility for firms to request alternative calculations on alternative assumptions if these would be more appropriate for their firm. With the withdrawal of the Society's recommended Table of Fees the provision of this information will become an even more important management tool for firms to help in setting their own feeing structure.
3. THE BENCHMARKS REPORT
Extracts from the previous year's report are published in the Journal and the full range of Benchmarks produced include profitability; support staff/fee earner ratios; salary levels of assistants and salaried partners; outlays outstanding; and bank borrowing/credit. Taking part lets firms see how their firm compares with others of a similar size and location.
4. PRIZE DRAW
Every firm whose questionnaire is received by Dr. John Pollock prior to the end of August each year will take part in a prize draw. Alex Quinn and Partners, the well known firm of Law Accountants, have sponsored this event for some time now.
5. CONFIDENTIALITY
As ever, confidentiality is guaranteed by the use of code numbers so that Dr. Pollock knows the figures of those firms taking part but not their names and the Society know who has taken part but not the figures.
If you wish more information contact the Society on 0131 476 8164.
