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How Many Fractional General Counsel Hours Does a Growing Business Need?

Jul 18, 2024
10 min read

Once a business decides that it needs ongoing legal support, the next question is often practical:


How many Fractional General Counsel hours does the company actually need each month?


There is no standard answer based solely on revenue, employee count or company size.



A business with relatively few employees may negotiate several complex customer agreements each month. A larger company may have well-developed templates and require only periodic legal support. Two companies of similar size can therefore require very different levels of legal capacity.


The appropriate monthly commitment depends on the company’s contract volume, agreement complexity, internal processes, negotiation activity and the extent to which Fractional General Counsel will be integrated into the business.


Some companies may need approximately 10 hours per month. Others may require 20 to 40 hours of recurring support. A business with substantial contract activity, several internal stakeholders or a significant legal backlog may require 40 to 80 hours or more.


This article explains what different levels of monthly Fractional General Counsel support may look like and how a business can estimate the right amount of legal capacity.


The Appropriate Number of Hours Depends on the Work


It can be tempting to choose a monthly package based on the company’s budget or the size of the business.


Those considerations matter, but they do not determine the actual workload.


The better starting point is to examine:

  • how many agreements the company handles each month;

  • the complexity of those agreements;

  • how often counterparties propose significant revisions;

  • the number of internal teams requiring legal support;

  • the amount of time leadership currently spends on legal questions;

  • whether existing contracts and templates require improvement;

  • how quickly the business expects legal matters to be completed;

  • whether counsel will negotiate directly with counterparties; and

  • whether the company has a backlog of legal work.


The objective is to reserve enough legal capacity to manage recurring work without consistently exceeding the monthly commitment or allowing important matters to remain unresolved.


What Does 5 to 10 Hours per Month Look Like?


Approximately 5 to 10 hours per month may be appropriate for a business with limited and relatively predictable legal requirements.


This level of support might include:

  • reviewing one or two routine contracts;

  • answering occasional legal questions;

  • providing advice about an existing agreement;

  • reviewing a proposed amendment or renewal;

  • attending a limited number of calls; and

  • addressing a small number of straightforward corporate matters.


This level may work for a business that does not negotiate contracts frequently but wants consistent access to a lawyer who understands its operations.


However, 5 to 10 hours can be used quickly if an agreement requires several rounds of negotiation, multiple stakeholder meetings or substantial revisions.


A smaller monthly commitment may not be sufficient if the business expects counsel to manage negotiations directly or remain closely involved with internal teams.


What Does 10 to 20 Hours per Month Look Like?


Approximately 10 to 20 hours per month may suit a company with recurring but manageable legal work.


The business may have several active contracts each month and require regular access to counsel, but its legal needs do not yet require deep integration across several departments.


This level of support might include:

  • reviewing customer and supplier agreements;

  • drafting or revising routine commercial contracts;

  • responding to contract redlines;

  • advising leadership on contractual risk;

  • attending periodic internal meetings;

  • reviewing renewals and amendments;

  • answering questions from sales or procurement; and

  • gradually improving contract templates.


This arrangement can work where the company has established agreements and reasonably organized internal processes.


It may be less suitable where the company has a significant backlog, inconsistent templates or several complex negotiations underway at the same time.


What Does 20 to 40 Hours per Month Look Like?


Approximately 20 to 40 hours per month generally reflects a more integrated legal relationship.


At this level, Fractional General Counsel may support several internal stakeholders and take active responsibility for recurring commercial legal work.


The company may have:

  • multiple customer or supplier negotiations each month;

  • agreements moving through several rounds of revisions;

  • regular legal questions from sales, procurement or operations;

  • significant contracts requiring direct lawyer involvement;

  • a need for faster turnaround;

  • inconsistent historical agreements;

  • recurring renewal and obligation-management requirements; or

  • leadership that wants to transfer responsibility for day-to-day contract matters.


The monthly work may include:

  • drafting, reviewing and negotiating commercial agreements;

  • communicating directly with counterparties and their lawyers;

  • attending sales, procurement or leadership meetings;

  • advising on risk, leverage and negotiating strategy;

  • maintaining consistent contract positions;

  • improving templates and clause libraries;

  • developing approval and escalation processes;

  • supporting contract renewals and terminations;

  • addressing early-stage contract disputes; and

  • coordinating specialized counsel where necessary.


This level of support may be appropriate for a business that has outgrown one-time contract reviews and needs counsel to become part of its operating process.


The lawyer is not simply reviewing documents when requested. Counsel is developing institutional knowledge, supporting internal decision-making and helping the company manage its commercial contract function more consistently.


What Does 40 to 80 Hours per Month Look Like?


Approximately 40 to 80 hours per month represents a substantial ongoing legal function.


This level may be appropriate where the business has significant contract volume, several internal departments, complex commercial relationships or a considerable backlog of legal work.


It may also apply where Fractional General Counsel supports more than one related company or business unit.


The work may include:

  • managing numerous active contract negotiations;

  • supporting several sales or procurement teams;

  • attending recurring operational and leadership meetings;

  • developing and implementing contract playbooks;

  • rebuilding outdated contract templates;

  • creating approval and escalation frameworks;

  • reviewing existing contract portfolios;

  • tracking important contractual obligations;

  • advising on strategic customer and supplier relationships;

  • coordinating multiple specialized legal providers;

  • managing recurring corporate matters; and

  • supporting major periods of commercial activity.


At this level, the business should consider whether it needs one Fractional General

Counsel, access to a broader legal team or a combination of fractional and internal legal resources.


It should also periodically evaluate whether the volume has become sufficient to justify hiring in-house counsel.


When Might a Business Need More Than 80 Hours per Month?


A company consistently requiring more than 80 hours of legal support each month may be approaching the point where a full-time internal lawyer, legal operations professional or broader legal department should be considered.


However, the number of hours does not automatically determine the correct model.


A substantial Fractional General Counsel arrangement may still make sense where:

  • demand fluctuates considerably;

  • the company needs several different types of expertise;

  • the workload is temporarily elevated;

  • the company is not ready to make a permanent hire;

  • the work is spread across multiple related businesses;

  • an internal lawyer requires additional contract support; or

  • the business needs interim legal capacity while recruiting.


The company should compare the advantages of continuing fractional support with the cost, capacity and strategic benefit of building an internal legal function.


Contract Count Alone Does Not Determine the Required Hours


A company cannot accurately estimate its monthly requirements by counting documents alone.


One agreement may take less than an hour to review. Another may require:

  • detailed legal analysis;

  • several rounds of redlines;

  • calls with internal stakeholders;

  • negotiation with opposing counsel;

  • revisions to commercial terms;

  • review of schedules and policies; and

  • coordination through signature.


The type of agreement also matters.


A routine non-disclosure agreement is different from a complex manufacturing agreement, enterprise SaaS contract, distribution arrangement or regulated healthcare agreement.


Businesses should assess both the number and complexity of their agreements.


Negotiation Can Require More Time Than Initial Review


Companies sometimes estimate Fractional General Counsel requirements based only on the time needed to review the first draft.


That can significantly underestimate the workload.


A contract may move through several stages:

  1. Initial legal review.

  2. Internal discussion.

  3. Preparation of revisions.

  4. Delivery of the redline to the counterparty.

  5. Review of the counterparty’s response.

  6. Negotiation calls.

  7. Further revisions.

  8. Internal approval.

  9. Preparation of the execution copy.

  10. Follow-up regarding outstanding schedules or requirements.


A contract that appears manageable at the outset may require substantially more time once negotiations begin.


When estimating monthly capacity, the business should consider the entire contract cycle rather than the initial review alone.


Internal Coordination Uses Legal Capacity


Fractional General Counsel hours may also include time spent coordinating with the company.


This can involve:

  • obtaining instructions;

  • understanding the commercial arrangement;

  • discussing acceptable compromises;

  • meeting with sales or procurement;

  • explaining risk to leadership;

  • reviewing operational requirements;

  • attending status meetings; and

  • documenting final decisions.


This work is necessary to ensure that legal advice reflects the business’s actual position.


A company with several stakeholders or unclear internal authority may require more coordination time than a company with one designated legal contact and an efficient approval process.


Turnaround Expectations Affect the Required Capacity


A company requiring rapid response times may need to reserve more monthly capacity.


Urgent contract reviews cannot always be accommodated simply by working faster.


The law firm must maintain enough availability to respond when the request arrives.


The company should consider:

  • how frequently urgent matters arise;

  • whether same-day or next-day responses are expected;

  • how many agreements may arrive simultaneously;

  • whether business deadlines are predictable; and

  • whether the company can prioritize matters when demand exceeds capacity.


Clear priority and escalation processes can help the business use its monthly hours more efficiently.


New Fractional General Counsel Relationships May Require More Time Initially


The first several months may require greater legal capacity than the steady-state relationship.


During the initial period, counsel may need to:

  • learn the company’s business model;

  • review existing contract templates;

  • understand important customer and supplier relationships;

  • identify active negotiations;

  • review upcoming renewals;

  • assess outstanding legal issues;

  • meet internal stakeholders;

  • establish communication processes;

  • determine approval authority; and

  • identify immediate legal priorities.


If the company has a substantial legal backlog, the initial engagement may also include corrective work that will not continue indefinitely.


The parties may begin with a larger monthly commitment and reassess the appropriate level once the backlog has been addressed and the legal function becomes more organized.


Contract Modernization Requires Additional Capacity


A company may need Fractional General Counsel for both active work and longer-term improvement.


Active work includes current contracts, negotiations and legal questions.


Contract modernization may include:

  • reviewing existing templates;

  • replacing outdated agreements;

  • standardizing important clauses;

  • creating contract playbooks;

  • establishing negotiation positions;

  • developing intake procedures;

  • defining approval thresholds; and

  • implementing renewal and obligation-management processes.


If the company wants both categories of work completed simultaneously, it must reserve sufficient capacity for each.


Otherwise, urgent contracts will repeatedly take priority and the underlying infrastructure may never improve.


How Should a Business Estimate Its Monthly Legal Hours?


A business can begin by reviewing the previous three to six months.


Consider the following questions:


Contract Activity

  • How many agreements were reviewed?

  • How many required negotiation?

  • What types of agreements were involved?

  • How many revision rounds were typical?

  • Were important contracts delayed because legal support was unavailable?


Internal Demand

  • Which departments regularly asked legal questions?

  • How much time did leadership spend managing contracts?

  • How many internal meetings required legal involvement?

  • Were decisions delayed while the company waited for advice?


Existing Infrastructure

  • Are the company’s templates current?

  • Are standard negotiating positions documented?

  • Are approval responsibilities clear?

  • Are renewals and notice periods being tracked?

  • Is there a backlog of unsigned, outdated or problematic agreements?


Expected Growth

  • Is contract volume increasing?

  • Is the company entering larger or more complex customer relationships?

  • Will procurement activity increase?

  • Are new products, territories or business units being introduced?

  • Is the company expecting an unusually active commercial period?


This assessment provides a more reliable estimate than selecting a monthly package based on company size alone.


Why Choosing Too Few Hours Can Create Problems


Beginning with insufficient capacity may appear economical, but it can undermine the purpose of the engagement.


If the monthly allocation is consistently exhausted:

  • contract reviews may be delayed;

  • lower-priority matters may never be addressed;

  • leadership may continue handling legal work internally;

  • templates and processes may remain outdated;

  • counsel may remain reactive rather than proactive; and

  • the company may continue experiencing the same bottlenecks that led it to seek ongoing support.


The purpose of Fractional General Counsel is to create reliable legal capacity.


The engagement should be large enough to address recurring work while leaving reasonable room for unexpected matters.


Why Choosing Too Many Hours Can Also Be Inefficient


A company should not reserve substantially more legal capacity than it can realistically use.


If the business does not have sufficient work or internal stakeholders are not prepared to engage with counsel, the arrangement may provide poor value.


This is why the monthly level should be reviewed periodically.


The business may need to increase, decrease or restructure the commitment as:

  • contract volume changes;

  • internal processes improve;

  • new business units are added;

  • major projects begin or conclude; or

  • the company hires internal legal personnel.


A well-designed fractional relationship should evolve with the business.


How Often Should the Monthly Commitment Be Reviewed?


The parties should assess the engagement after the initial implementation period and periodically thereafter.


The review can consider:

  • actual hours used;

  • types of work completed;

  • recurring areas of demand;

  • matters that were delayed;

  • expected upcoming transactions;

  • internal satisfaction with response times;

  • whether the current scope remains appropriate; and

  • whether the company is approaching the point of hiring in-house.


The objective is not to keep the company in the largest possible monthly package. It is to match legal capacity to genuine business demand.


How Delta Law Determines the Appropriate Level of Support


Delta Law begins by assessing the company’s current contract activity and internal requirements.


This includes considering:

  • the approximate number of active contracts;

  • the complexity of those agreements;

  • the number of internal stakeholders;

  • expected negotiation requirements;

  • existing templates and contract processes;

  • current legal backlogs;

  • turnaround expectations;

  • anticipated growth; and

  • whether counsel will support one company or several related businesses.


Based on that assessment, Delta Law recommends a level of monthly capacity aligned with the company’s expected requirements.


The scope, included capacity, communication process and pricing are established before the engagement begins.


Usage can then be reviewed as the relationship develops and the company’s actual legal requirements become clearer.


The Right Number of Hours Is the Amount the Business Can Use Effectively


There is no correct monthly allocation for every growing company.


A business with limited recurring legal work may need 5 to 10 hours. A company with regular commercial contracts may require 10 to 20 hours. A business requiring integrated support across leadership, sales and procurement may need 20 to 40 hours. A company with substantial contract activity or several business units may require 40 to 80 hours or more.


The correct amount is the level that allows counsel to manage recurring legal work, respond within appropriate timelines and improve the company’s legal function without leaving substantial capacity unused.


Determine the Right Level of Legal Support for Your Business


Delta Law provides Fractional General Counsel services for businesses managing recurring commercial contracts, complex negotiations and growing internal legal demands.


We work with leadership, sales, procurement and operations teams to assess existing requirements and design an appropriate level of monthly legal support.

Book a consultation to discuss your contract volume, current legal workload and whether 10, 20, 40 or more monthly hours may be appropriate for your business.


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