Understanding Outside Counsel Guidelines (OCGs): Essential Insights for Law Firms
Outside Counsel Guidelines (OCGs) are now an integral part of the legal services landscape, especially for law firms serving corporate clients. For many firms, the difference between a seamless client relationship and repeated invoice rejections often comes down to how well OCGs are understood and implemented. Below, we break down what OCGs are, why they matter, and how your firm can stay ahead of compliance challenges.
What Are Outside Counsel Guidelines?
OCGs are client-issued documents that set forth the requirements, standards, and expectations for outside legal service providers. These guidelines go well beyond basic billing instructions—they define how legal work should be staffed, managed, and reported, and they specify how and when invoices must be submitted.
Why are they critical?
Failure to comply with OCGs is one of the most common reasons for delayed or rejected invoices, leading to unnecessary administrative work, slower payments, and sometimes even jeopardized client relationships.
Key Elements of OCGs Your Firm Must Master
1. Preapproved Activities and Activities Requiring Preapproval
Clients often distinguish between “preapproved” activities (those you can bill for without additional permissions) and those that require explicit preapproval.
Examples of preapproval requirements: Engaging expert witnesses, conducting extensive legal research, or incurring significant travel expenses.
Action: Always verify which activities require preapproval before commencing work to avoid non-billable hours.
2. Billing Deadlines
Most OCGs specify strict billing timelines—sometimes as short as 30 or even 15 days from the date of service.
Consequence: Missing these deadlines can result in automatic rejection of invoices, impacting your cash flow and client satisfaction.
Best practice: Implement internal reminders and workflows to ensure all timekeepers and billing staff are aligned with client deadlines.
3. Requests for Specific Information
Many clients require law firms to provide additional documentation alongside invoices, such as:
Budgets and accruals
Staffing plans
Detailed matter updates or periodic reports
Failure to provide this information as requested can lead to invoice delays or rejections.
4. eBilling System Requirements
Increasingly, clients require law firms to submit invoices via specific eBilling platforms (such as Tymetrix 360, Collaborati, or Legal X).
Compliance tip: Confirm the required platform for each client, ensure your team is trained, and test your invoice file formats before first submission.
5. Legal Department Contact Information
OCGs may specify exactly where and to whom invoices or communications should be sent.
Risk: Sending invoices to the wrong contact or department can result in lost or delayed payments.
Solution: Maintain an up-to-date directory of client contacts and confirm these details during onboarding and whenever guidelines are updated.
6. Supporting Documentation
Some guidelines require additional documentation, such as:
Receipts for expenses
Detailed time entries
Compliance certifications
Having standardized templates and checklists can streamline this process and reduce errors.
The Cost of Non-Compliance
Non-compliance with OCGs can lead to:
Invoice rejections and payment delays
Reduced client trust
Increased administrative burden
Potential loss of business
Given that many law firms operate on thin margins and tight timelines, these risks are significant.
How Smart eBill Team Supports OCG Compliance
At Smart eBill Team, we understand the complexity and importance of OCG compliance. Our specialized services help law firms:
Analyze and summarize OCGs for actionable insights
Configure and test eBilling systems for compliance
Support invoice submission, appeals, and troubleshooting
Deliver tailored training to keep your team current on evolving client requirements
Our consultants—all with in-house law firm experience—focus exclusively on eBilling, ensuring that your firm’s billing practices are both compliant and efficient.
Final Thoughts
Outside Counsel Guidelines are not just a formality—they are a fundamental part of the modern client relationship. By proactively managing OCG compliance, your firm can reduce billing friction, accelerate payments, and enhance client satisfaction.
If your firm needs expert guidance or hands-on support with OCG compliance and eBilling, contact Smart eBill Team today.
About Smart eBill Team
Smart eBill Team is a US-based provider specializing in outsourced legal eBilling and billing technology solutions and training. We help law firms and legal departments optimize billing processes, improve compliance, and focus on what matters most—delivering exceptional legal services. Contact us for more information today info@smartebillteam.com.
