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Chris Hart

Ten Steps to Reducing Your Company's Legal Costs

Updated: Aug 30, 2023



A lot of time is spent by companies looking for ways to reduce legal costs. Large organisations need a full-time general counsel and supporting legal staff made up of in house lawyers and administrative staff. However, smaller growth emerging companies and SME's may not have the luxury and resources to hire such legal support. Large firms may not be able to give you a personalised cost-effective approach, however smaller firms like Air Legal can.


This article will assist you in developing legal management principles that reduce legal costs and increase efficiency in your business.

  1. Engage in preventative measures: Take proactive steps to minimise legal risks by implementing policies, procedures, and training programs. This can help prevent potential legal issues before they arise and save costs associated with litigation or legal disputes.

  2. Seek legal advice early: Consult with a lawyer at the early stages of any significant business decision or transaction. They can provide guidance to ensure compliance with relevant laws and regulations, identify potential risks, and suggest cost-effective strategies.

  3. Negotiate favourable contracts: Carefully review and negotiate contracts to protect your interests and minimise the likelihood of disputes. Ensure the terms are clear, well-defined, and fair, with appropriate provisions for dispute resolution, liability, and termination.

  4. Use templates and standardised agreements: Utilise pre-drafted legal templates or standardised agreements whenever possible. These resources are often available online or through legal service providers and can save costs associated with custom drafting.

  5. Conduct regular legal audits: Periodically review your business operations and contracts to identify potential legal issues or areas of non-compliance. This proactive approach can help you address concerns before they escalate into costly legal problems.

  6. Consider alternative dispute resolution (ADR): Explore alternatives to litigation, such as mediation or arbitration, to resolve disputes. ADR methods can be quicker and more cost-effective than traditional court proceedings.

  7. Use technology and legal software: Leverage technology and legal software tools to streamline legal processes, manage contracts, and automate routine legal tasks. This can help increase efficiency and reduce the need for manual labor or extensive attorney involvement.

  8. Educate your team: Train your employees on legal compliance and best practices in their respective areas of work. This can reduce the likelihood of legal errors or violations and minimise potential legal costs.

  9. Compare legal service providers: Obtain multiple quotes or proposals when seeking legal services. Compare the expertise, experience, and cost structures of different providers to find the most suitable and cost-effective option for your business.

  10. Consider legal insurance: Investigate whether legal insurance is available in your jurisdiction. Legal insurance policies can help cover legal costs and provide access to legal advice when needed.

Remember, while cost-saving measures can be beneficial, it is essential to balance them with the need for proper legal guidance and compliance. Consulting with a qualified lawyer is crucial for understanding and addressing your specific legal requirements.


Balance reducing legal costs with proper legal guidance
Balance reducing legal costs with proper legal guidance

If you would like help with any of the above matters or would like know more, please contact us.


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