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⭐ What Is Shadow Billing?
Shadow billing is when a matter is billed under a fixed fee or other Alternative Fee Arrangement (AFA), but the vendor provides a comparison showing what the matter would have cost under hourly billing.
Clients may request shadow billing to:
✔ Ensure the work completed is appropriate for the matter
✔ Compare the fixed fee to the equivalent hourly cost
Shadow billing should reflect accurate and reasonable time entries.
⚙️ How to Submit Shadow Billing
There are two approved methods for submitting shadow billing in Brightflag. Vendors should follow the method preferred by the client.
🔹 Option 1: Submit as an Hourly Invoice
📝 How It Works
Submit the invoice with hourly line items.
Add a fee adjustment to bring the invoice total to the fixed fee amount.
Can be applied per line item, or
As one adjustment to the invoice total.
Add a note on the invoice: "Fixed Fee – Shadow Billing Provided."
🧾 Example Fee Adjustment Line
Product: Legal Fee
Text: Fee Adjustment
Unit: Hours
Qty: 0
Total: Adjustment needed to reach the fixed fee (+/–)
🔹 Option 2: Submit as a Fixed Fee Invoice
📝 How It Works
Submit the invoice as a Fixed Fee.
Do not include hourly line items or timekeeper information on the invoice.
Attach the detailed hourly shadow billing as a supplementary attachment.