What "commercial" actually covers
It is a bucket, and firms fill it differently. Before you shortlist, work out which of these you are buying:
Corporate is transactions: share sales, acquisitions, investment rounds, shareholder arrangements. Priced per deal, usually fixed or capped.
Commercial is the contracts a business runs on: supply, reseller, licensing, terms and conditions, data protection. Often fixed fee per document.
Dispute resolution is what happens when one of the above fails. Hourly, unpredictable, and the reason the drafting was worth paying for.
A firm strong in one is not automatically strong in the others. Ask which of the three the partner you meet actually spends their week on.
Three questions for the first meeting
- Who drafts and who reviews? The answer tells you what you are paying for and where the leverage sits.
- What is excluded from this fee? The exclusions are where the estimate goes wrong.
- What is your SRA number? A firm that cannot produce it instantly is a firm that has never been asked, which is itself informative.
Red flags
- An estimate with no stated assumptions. It is a number, not a quote.
- A pitch team of partners and a delivery team you never meet.
- Reluctance to give a fixed fee on genuinely repeatable work like a set of terms and conditions.
- No named contact, or a named contact who changes between the pitch and the engagement letter.
- Any legal services provider that is not SRA regulated. You lose client money protection, mandatory insurance and the Legal Ombudsman all at once.
When you do not need a solicitor
Standard-form documents for a very small business, an ordinary employment contract, a simple NDA, are available from reputable template services for a fraction of the cost, and a solicitor reviewing your completed template is cheaper than one drafting from scratch.
Pay for bespoke drafting when the money at stake exceeds the fee by a wide margin, when the arrangement is unusual, or when the other side has lawyers and you do not. If a shareholder is joining or leaving, that is always the moment.
The employment shortlist covers the specialists worth using when the issue is staff rather than contracts, and the accountants shortlist covers the other half of most corporate transactions.