Contingency Fee In Construction In Georgia

State:
Multi-State
Control #:
US-00442BG
Format:
Word; 
Rich Text
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Description

The Contingency Fee Agreement with an Attorney or Law Firm is a critical legal document relevant to construction-related claims in Georgia. This agreement outlines the financial arrangement between the client and attorney, specifying that the attorney will receive a percentage of the net recovery from claims, dependent on how the matter is resolved—either out of court, through trial, or after an appeal. The form also addresses the costs that clients may need to pay, including disbursements and travel expenses incurred by the attorney while representing the client. This document provides attorneys with a lien on any recovered sums, ensuring they are compensated for their services. It allows attorneys to employ expert witnesses, with the understanding that costs will be covered by the client. Importantly, the agreement stipulates the attorney's rights in the event a client settles the claim without their involvement, ensuring compensation is still applicable. The document is crucial for a target audience that includes attorneys, partners, owners, associates, paralegals, and legal assistants as it serves to clearly outline roles, responsibilities, and compensation structures in construction claims, making it a vital resource in legal proceedings.
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FAQ

"In order to recover attorney fees, a prevailing party must prove both their actual costs and their reasonableness." In re Serpentfoot, 285 Ga. App. 325, 329, 646 S.E.2d 267, 271 (2007) (attorney's fees for frivolous litigation pursuant to OCGA §9-15-14).

The average contingency rate falls between 20-40%, with most lawyers charging around 33% to 35% of the total amount recovered in a case. The exact percentage can vary depending on the complexity of the case, the lawyer's experience, and the stage at which the case is resolved.

The recommended percentage for a contingency fund is between 5-10% of the total budget, but this may vary depending on project complexity and past experiences.

Typically, most construction projects use a contingency rate of 5% to 10% from the total project budget. This is typically enough to cover any unexpected costs that may arise throughout the project.

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Contingency Fee In Construction In Georgia