A blended rate applies one rate to every timekeeper on a matter, set between the firm's partner and associate rates. It may be negotiated per matter, per client, or across a portfolio.
The rate's economics depend on the actual staffing mix.
Alternative Names:
Blended Hourly Rate, Single Rate
Why it Matters?
The arrangement rewards leverage, since a firm staffing predominantly with associates earns more per hour than the associate rate while the client pays less than partner rates. That alignment breaks where the matter requires heavy partner involvement, which is why blended rates suit high-volume routine work better than severity litigation. Clients should confirm that the negotiated rate reflects a realistic staffing assumption rather than an optimistic one.
Frequently Confused with
Related terms
Frequently asked questions
Who benefits from a blended rate?
When does the arrangement fail?
