Alternative Fees Agreements
Risk Sharing
In Securitas Consulting provides fair treatment to its clients and understands they trust us in order to accomplish their goals.
Thus we have introduced agreements that combine alternative rates and shared risk, therefore making the firm accountable for the potential contingencies of our work. In brief: we bear the costs if we do not achieve expected results, thereby adjusting our interests with those of our clients.
In Securitas Consulting creemos que nuestros clientes merecen un trato justo y asumimos que tienen altas expectativas de nuestros servicios. Por esa razón somos pioneros en acuerdos que integran alternative rates and shared risk, therefore making the firm accountable for the potential contingencies of our work. In brief: we bear the costs if we do not achieve expected results, thereby adjusting our interests with those of our clients.
Nuestro interés es satisfacer las necesidades de quienes confían en nosotros y garantizar que sus objetivos correspondan con los de la firma. Para ese fin implementamos tarifas alternativas y compartimos el riesgo asociado a los resultados de los trabajos propuestos. Los acuerdos con tarifas alternativas han llevado a que, cada vez más, nuestros clientes se aparten de la estructura de facturación tradicional por horas y procuren establecer marcos en los que se establezcan objetivos cuantificables y se integren sus propósitos.
Alternative Fees Agreements
Our premise is to clearly define together with our clients the objectives of the work to be undertaken. Consequently, in most cases traceable outcomes can be set, which we endeavor to achieve based on agreements that include variable rates linked to pre established goals and/or success fees. By sharing the risks associated with the uncertainty of attaining these common goals, we become long-term partners of the companies and organizations that trust us.
Alternative Fees Arrangements enable us to define clear objectives, adjust to the requirements and budgets of our clients and set fee caps. As defined in the arrangements, there is a fixed-fee component and a success fee. The latter is subject to the achievement of proposed results. Consequently, bottom line fees are lower than those payable under a traditional scheme, as a given percentage of the fees (sometimes a significant proportion) is linked to the success of our work.
Simply put: if the results are positive, the firm charges the fees associated with this outcome. Otherwise, clients do not have to pay the variable fee component. This scheme is definitely more beneficial to our clients, but it also suits our firm, since we are interested in establishing long-term relationships based on joint achievements.
Examples
Alternative Fees Arrangements fulfill the above-mentioned purposes both in the field of legal advice and in the field of occupational health and safety (OH&S). Below are some examples:
- Occupational Health and Safety Management Systems (OHSMS) are implemented by Securitas Consulting based on quantitative indicators associated with companies’ productivity and efficiency. Our work in this field is aimed at improving metrics for our clients. Examples of the above are a reduction in the frequency rates of work accidents, a decrease in the prevalence of occupational diseases, and the successful intervention of previously identified hazards and risks, etc. AFAs in the context of OH&S enable us to set quantifiable goals according to acceptable ranges, to be jointly established with our clients. Consequently, only when the expected outcomes are achieved, taking into account pre established ranges, the success fees are payable.
- En el arbitraje, como mecanismo alternativo de solución de conflictos, la firma establece un componente de honorarios variable sujeto a un resultado favorable del laudo para el cliente. Conforme a los acuerdos en este contexto, Securitas Consulting puede establecer que solo recibirá el sesenta por ciento (60%) de los honorarios que se establecen para este tipo de representaciones y, en consecuencia, deja que hasta el cuarenta por ciento (40%) restante se pague, conforme a los resultados obtenidos al final del proceso.
- In proceedings before the Superintendence of Industry and Commerce (SIC: Superintendencia de Industria y Comercio), such as trademark registrations, the firm pre defines success fees, streamlining the interests of our clients with those of Securitas Consulting, and ensuring that our team makes its best effort to obtain set results. For example, the trademark registration applications filed by our firm include a fee component that is only payable when the Superintendence has approved the trademark filing. Therefore, up to 30% of the predetermined fees shall be contingent to successfully obtaining the trademark register. Thus, the firm bills the success fee portion only if the trademark register is obtained.
