How to Conduct a Successful Tender for Legal Services in Asian Markets

If your company is entering Asian markets or handling complex legal matters in the region, you should not underestimate the tender process for legal services. Selecting the right law firm is a critical decision that protects you from unexpected costs and penalties. In this article, you will learn how to structure a tender process and what to look for when evaluating bids from both local and international firms, with insights from our Prague-based legal team.

Executive Summary for Management

• Tendering for legal services in Asia requires expert preparation: It is not just about the price, but about licensing, insurance, and local market knowledge.
• The role of Lead Counsel is key: Coordinating multiple jurisdictions from one point saves costs and reduces the risk of errors.
• The contract must be bulletproof: Insist on an Engagement Letter with clear fee caps.
• Trust but verify: References and conflict checks are essential.

Why tendering for legal services in Asia differs from the domestic market

Tenders for legal services are not standard purchases of commodities or routine services. Legal work requires specific knowledge that varies dramatically across individual Asian jurisdictions. Simply put: a lawyer with excellent knowledge of the Hong Kong legal system (common law) may not be the ideal partner for resolving issues in Indonesia or Vietnam (civil law). Each country has its own rules, ethical standards, and procedural methods.

The second fundamental difference is that the relationship with a law firm is based on trust and confidentiality, governed fundamentally by the principles of a mandate contract under Act No. 89/2012 Coll., the Czech Civil Code. Unlike a classic tender where you select a supplier for a one-off transaction, legal services require long-term cooperation and a deep understanding of your business. Our attorneys in Prague at ARROWS regularly manage legal service tenders for their international clients and know exactly what to focus on.

They understand the specific challenges posed by the Asian legal market and are familiar with the most common mistakes made by contracting authorities.

Securing legal services in Asia – strategies and risks

When companies decide how to secure legal services in Asia, they have several possible approaches. The most common are direct cooperation with a local firm, utilizing an international network with a local presence, or a combination of both under the guidance of a domestic lead counsel. View our service where we implement these strategies. Each strategy has its own advantages and risks.

Tenders in the Asian legal space must reflect processes that vary by country, as government authorities in Singapore or China have different transparency requirements than the private sector. The legal framework in each country determines which documents tendering firms must submit and what criteria they must meet. The experience of our Czech legal team at ARROWS shows that companies often fail to pay sufficient attention to local regulations.

A crucial factor is the regulatory restrictions regarding who is actually permitted to provide legal services. For example, in Indonesia, full legal services and court representation can only be provided by advocates licensed under Indonesian law. In India, the presence of foreign legal firms is regulated and subject to specific rules. Our Prague-based attorneys have practical experience with these limitations and will ensure the selection of a firm that is authorized to fully represent you.

Tender preparation phase – plan as early as possible

Preparing a tender for legal services begins long before you issue a Request for Proposal (RFP). First, you must define the Scope of Work. This is not always simple, as legal needs vary across different Asian countries. For instance, in China, you will need lawyers who are familiar with both local regulations and foreign exchange restrictions for the repatriation of profits.

The second step is to define the budget and timeframe, as legal services in Asia can be expensive, particularly in financial hubs. It is not just about the hourly rates of the lawyers. In Hong Kong or Singapore, the rates of senior partners are comparable to those in London or New York, while in Vietnam or Thailand, rates may be nominally lower. However, you must realize that a lower rate does not necessarily mean a lower total cost.

The third element of preparation is jurisdictional analysis. If you are working in only one country, the situation is simpler. However, if you need support in multiple countries, you must choose a firm that has a network or cooperates with proven local lawyers (so-called "best friends" networks). Our attorneys in Prague at ARROWS work daily with multiple Asian jurisdictions and understand the specific challenges of coordinating legal advice in the region.

microFAQ – Legal tips for tender preparation

1. What exactly do I need to specify in an RFP for legal services?
Be specific about the type of legal work (e.g., M&A, litigation, compliance, IP law), geographic scope, communication methods, languages, and preferred fee model (hourly rate vs. cap fee/fixed fee). Vague specifications lead to incomparable bids.

2. What should be the ideal content of an RFP?
The RFP should include a description of your needs, evaluation criteria (expertise, price, references, conflict of interest), the deadline for submission, and basic information about your business (to the extent that it does not violate trade secrets before signing an NDA).

3. How long should the selection process take?
In Asia, complex tenders for legal services are typically resolved within weeks to months (approx. 2–3 months for large-scale projects). The experience of our attorneys in Prague at ARROWS law firm shows that a rushed selection without proper due diligence of the legal partner does not pay off.

Criteria for selecting a legal partner in Asia

Once you have prepared the tender, you must clearly define the evaluation criteria. This is particularly crucial in Asia, as the legal culture and perception of client service can differ from European standards.

Evaluation should be based on references and rankings, while our Czech legal team at ARROWS law firm routinely verifies documents to determine the team's actual experience. If you need assistance with M&A in Singapore, choose a firm with proven experience in transactions within that specific sector. A good tender must include reference verification – you should contact former clients or rely on independent assessments.

The second criterion is local knowledge and relationships. The law firm should have a deep understanding not only of the laws but also of the application practice of local authorities. In some Asian countries, knowledge of unwritten rules and administrative procedures is key to the speed of case resolution.

Given the time difference, it is crucial that the law firm has a clear communication plan; therefore, you should arrange contact persons and response times in advance. Our Prague-based attorneys at ARROWS have extensive experience in coordinating work across time zones and acting as an efficient intermediary.

The fourth criterion is price and fee structure. Rates vary greatly across Asia. Some firms prefer hourly rates, others fixed fees for specific tasks, or a combination with capped fees. Recently, success fees have appeared in litigation, but be cautious – this model is restricted in certain Asian jurisdictions. In the Czech Republic, this model is ethically regulated by the resolution on the Code of Ethics.

ARROWS law firm maintains professional liability insurance up to CZK 400,000,000, providing clients with a high degree of security. Pay attention to whether and to what extent a law firm is insured for professional negligence, as limits vary significantly across Asia. 

microFAQ – Legal tips for evaluation criteria

1. How can I verify the quality of a law firm in Asia?
In addition to direct references, look at rankings in prestigious legal directories such as Chambers & Partners, The Legal 500 Asia Pacific, or IFLR1000.

2. What qualifications should a legal partner have?
This varies by jurisdiction. In Commonwealth countries (Singapore, Malaysia, HK), you look for Solicitors/Barristers. In other countries (Vietnam, China, Thailand), they must hold a valid license from the local bar association. Beware of "legal consultants" who do not hold a formal license to practice law.

3. Should I choose one global firm or multiple local partners?
If you require a unified approach, a global firm or a strong Prague-based law firm with an international network (such as ARROWS International) is better. If you are dealing with a very specific local issue, a specialized local "boutique" firm may be more appropriate.

Structure of a Request for Proposal (RFP) for legal services

The RFP is the central document of any tender. In international business, it should be drafted in English.

An ideal RFP includes:

• Introduction and context: A description of your business and the reason for seeking a legal partner. Specification of the countries involved in the project.
• Scope of Work: Be specific (e.g., "We require legal due diligence of a target company in Vietnam").
• Evaluation criteria: How you will select the partner (weight of price, experience, team).
• Proposal requirements: Team structure (Partner, Associate, Junior), CVs of key lawyers, hourly rates, and an estimate of total costs.
• Contractual and commercial terms: Payment terms, invoice maturity, billing currency, and dispute resolution.
• Procedural information: Deadline for submission, contact person, and selection timeline.

Evaluating bids – what to focus on

When evaluating bids, focus not only on the final price but on Value for Money.

• Understanding the assignment: The proposal should not be just a copied template. It must respond to your specific challenges.
• Team composition: Who will actually do the work? Often a partner ("rainmaker") sells the service, but juniors perform the work. Demand to know the team composition and who your "Key Contact" is.
• Conflict of Interest (Conflict Check): This is a critical point. The law firm must confirm it does not represent the opposing party or an entity with conflicting interests. In Asia, where business circles are often interconnected, a thorough conflict check is essential.
• Price in context: The cheapest offer can be a trap (e.g., low rate but high number of hours). Compare total budget estimates and request guarantees (caps).

Contractual arrangements – what to agree on before starting

Cooperation should be backed by a legal services agreement (Engagement Letter) or a framework agreement, which must comply with local regulations governing the legal profession, such as Act No. 85/1996 Coll., on the Legal Profession in the Czech Republic.

Key points of the contract:

• Description of Services: Definition of what is and is not included in the scope of service (in-scope vs. out-of-scope).
• Remuneration and Costs: Clear billing rules, charging of out-of-pocket expenses (travel, couriers, court fees), and VAT/local taxes (e.g., GST/VAT).
• Service Standards: Expected response times and the format of deliverables.
• Confidentiality and Data Protection: Non-disclosure agreement (NDA) commitment and compliance with data protection regulations; in Asia, this includes, for example, the PDPA in Singapore or relevant laws in China.
• Liability: Limitation of the attorney's liability (usually up to the amount of insurance coverage or a multiple of the fee) – exercise caution here.
• Governing Law and Dispute Resolution: Where will you litigate against your own lawyer if they make a mistake? Arbitration in a neutral venue or courts in the client's jurisdiction is ideal if the other party accepts.

microFAQ – Legal Tips for the Contract

1. What are typical notice periods?
For legal services, a client can generally terminate the contract at any time (subject to payment for work already performed) according to the principles of a mandate contract under Act No. 89/2012 Coll., Section 2440 of the Czech Civil Code; an attorney may only terminate for statutory reasons, e.g., under Section 20 of the Czech Legal Profession Act.

2. What to do if the lawyer does not deliver work on time?
The contract should account for deadlines, but in legal services, contractual penalties are less common than fee discounts.

3. How is a conflict of interest handled during the cooperation?
The contract should bind the firm to ongoing conflict checks.

Coordination with Local Lawyers – Best Practices

The most important factor is unified management (Legal Project Management). If you have multiple lawyers in different countries, designate one "Lead Counsel" (e.g., ARROWS) to unify instructions and review outputs. This ensures that legal documentation remains consistent across the region.

Documentation and archiving are also crucial. All advice and opinions should be in writing. In Asia, it is important to ensure that final outputs are in a language you understand (English), including translations of local contracts.

Special Issues – Working Across Multiple Jurisdictions

In projects involving multiple countries (e.g., China, Vietnam, Singapore), you encounter different legal systems (Common Law vs. Civil Law). Our attorneys in Prague at ARROWS ensure that the legal structure of the holding or transaction works as a whole and that no collisions occur (e.g., tax issues or liability of statutory bodies).

Risks in Choosing a Legal Partner – Common Pitfalls

• Language Barrier: A lawyer claims to be proficient in English but writes contracts in "Czenglish" or "Chinglish." Review by a native speaker or an international lawyer is necessary.
• Hidden Costs: Billing for every started quarter-hour, copying, or phone calls. Demand "all-in" rates or a clear price list of expenses.
• Conflict of Interest: A local firm may have ties to government officials or your competitors that you are unaware of.

Conclusion

Choosing the right legal partner in Asia is a strategic decision. The right partner will help you navigate the complex legal environment and avoid sanctions. Our Czech legal team at ARROWS deals with these processes daily and utilizes the ARROWS International network. They know how to structure a tender and how to ensure a legal partner meets your expectations.

We have experience serving hundreds of corporate clients and maintain high-level professional liability insurance. If your business is considering entering Asian markets and you are seeking consultancy, ARROWS law firm in Prague will provide you with expert guidance.

For a consultation, do not hesitate to contact us at office@arws.cz.

FAQ – Most Frequent Legal Questions Regarding Tenders for Legal Services in Asia

1. What is the typical timeframe for selecting a legal partner?
Standardly 1–3 months depending on complexity. For urgent matters, the process can be accelerated, but risks increase. However, we can immediately recommend someone from our ARROWS International network, as we handle international matters daily.

2. Should I choose an international firm or a local one?
For complex international transactions, an international firm or a Czech law firm with a foreign network (for coordination) is more suitable. For purely local disputes (e.g., employment law in a factory in Hanoi), a local specialist under the supervision of your lead counsel can be effective.

3. What prices can I expect?
In hubs like Singapore or Hong Kong, rates are comparable to Western Europe (hundreds of USD/EUR per hour). In developing countries, rates may be lower, but for reputable firms serving international clientele, they still remain within standard international ranges.

4. How do the legal systems differ?
Hong Kong, Singapore, and India are based on Common Law. Vietnam, Thailand, and Indonesia have systems closer to Civil Law, often with local specifics. China has a specific socialist legal system.

5. What is most important in an SLA/Contract?
A clear definition of the scope of work, cost limitations (Budget Cap), and a conflict of interest clause. Contact us at office@arws.cz for a review of your contracts.

Disclaimer: The information contained in this article is for general informational purposes only and does not serve as legal advice for a specific case. Legal regulations and their interpretation may change. To resolve your specific situation, it is necessary to contact ARROWS law firm in Prague directly (office@arws.cz). We bear no responsibility for damages resulting from the use of this information without professional legal consultation.

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