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• What Is Shadow Billing?
• How to Submit Shadow Billing

⭐ 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

1. Submit the invoice with hourly line items.
2. 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.
3. 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

1. Submit the invoice as a Fixed Fee.
2. Do not include hourly line items or timekeeper information on the invoice.
3. Attach the detailed hourly shadow billing as a supplementary attachment.