Most legal departments accept these increases by default because they don’t come to the table with benchmarks, structured guidelines, and a disciplined review process. This report covers: Average hourly billing rates are steadily increasing into 2026 How to approach rate negotiations at the start of an engagement, not annually Why outside counsel billing guidelines only work when they’re actively enforced Where alternative fee arrangements apply, and why 90% of legal spend still flows through hourly billing How a legal bill review program captures savings on the spend that AFAs don’t cover Legal departments that have implemented a consistent invoice review process have recovered significant savings, including a major U.S. retailer that reduced outside legal spend by 8%, totaling nearly $200,000 in one year.
