U.S. law firms project an average overall increase in billing rates of 3.2 percent for 2010, according to a newly released survey by legal consulting firm Altman Weil Inc. Most law firms will make rate change decisions based on specific variables, including timekeeper class, practice, client or individual timekeeper.

“Although these results may seem to contradict some expectations for rate freezes in 2010, this is a relatively conservative rate increase by law firms that are struggling to balance their own business perspective with the needs of their clients.” Altman Weil principal Tom Clay said in a press release. “Most firms are making careful, considered increases – often client by client or lawyer by lawyer – unlike prior years when across-the-board increases were typical.”

Conducted in November, the survey polled 688 law firms with 50 or more attorneys. Completed surveys were received from 288 firms (a 42 percent response rate), including 45 percent of the 250 largest U.S. law firms.

Larger firms anticipate a slightly higher average increase than smaller firms, with 1,000+ lawyer firms reporting an average 4 percent increase, while firms with 50-99 lawyers will raise rates 3 percent. In firms that plan an across-the-board increase, the average rate change will be 4.1 percent.

Fewer than 1 percent of the firms surveyed plan to decrease rates in 2010, but 8.5 percent will make no increase.

“In 2009, law firms faced a constant stream of requests from clients for discounts, and that will not change in 2010. The reality is that most rates are negotiable,” Clay said.

The complete survey, including selected comments from participants, is available to download online at www.altmanweil.com.