The Gazette 1967/71

indicate the class of business as in 1 above and also non-chargeable time. A specimen daily work sheet is shown in appendix 2. 4. A job sheet for each case is compiled from the fee earners' daily work sheets showing the position in the office, the time cost factor and the number of hours spent on the matter when finished by each fee earner. The cost of the job to the office is found by multiplying the number of time units which each fee earner spends on the job by his time cost factor per unit and totalling the whole. Job sheets are kept in suitable loose leaf ledger or folders while the cases are current. On completion or when a final or interim bill is to be furnished the job sheet is totalled and disbursements are added. From this the time cost in money terms is readily available, which as already stat ed is a relevant but not the only factor in preparing the bill. 5. The system does not purport to regulate the fee charged for each case. Some jobs may be done at less than cost, others at more. The system shows the relation of fees charged to cost of each job to the office on the basis of pre-determined basic salaries of each profit (or loss) sharing principal and actual salaries of other fee earners and ascertained overhead expenses. In other words it indicates for each job the minimum fee which ought to be earned to cover the expenses of doing it. This is not necessarily the fee which will be charged. 6. The fee to be charged in each case is ascertained by a principal or other fee earner in accordance with office practice by reference to a commission scale fee, schedule 2 or bill of costs taxed or not as dictated by the circumstances and also having regard to the job sheet for the case which shows the cost of doing it. 7. Monthly analysis of expenses and costs. As bills of cost are furnished the relevant job sheets are placed in folders classified under the various heads selected in para graph 1. At the end of each month a 32

as

treated

are

salaries)

expenses of the practice. (2) The time-cost factor of a fee earner is the amount per hour which he should earn to produce his salary plus the appropriate proportion of general overheads allocated to him on the basis of an agreed number of working hours per annum. (3) For recording purposes time is shown in units of 6 minutes (10 to the hour).

Any fraction of a unit less than 3 minutes should be recorded as half a unit. Example 2 minute phone call --a- unit, 4 minute call - 1 unit. Chargeable working hours per annum are calculated thus

Year Less Vacation 4 weeks Xmas & Easter 1 week Illness, bank

52 wks.

holidays & occasional absence

wks. £ wks per annum

1-J- weeks

35 hours per week 9 a.m. *T 5.30 p.m. (less 1J- hours) Deduct 20% for non- chargeable time

- 1592 hours per annum

318 1274 say 1275 hours

per annum. (2750 units) 3. Set up time recording system for each fee earner using the Solicitors Law Stationery OYEZ SYSTEM He records on a daily work sheet, the time spent on each matter handled with code letters to