# Benchmarking

## Required Benchmark Hierarchy
Benchmark in this order and stop as soon as a sufficiently strong comparator is available:
1. Exact internal historical analogue;
2. Same firm, same matter type, same phase prior work;
3. Same department averages for similar matters;
4. Approved budget or staffing plan;
5. Public directional benchmark; and
6. Heuristic estimate.

Never skip internal comparators just because an external market figure is easier to cite.

## Comparator Matching Rules
Try to match on as many of these factors as the data allows:
- Matter type;
- Matter phase or task;
- Complexity of the legal work;
- Jurisdiction or venue;
- Stakes, exposure, or transaction size;
- Urgency or event-driven timing;
- Document volume, custodians, or discovery burden;
- Fee arrangement type;
- Law-firm tier or specialist nature; and
- Time period.

The weaker the match, the lower the confidence.
When comparator fit is disputed, review [references/matter-complexity-factors.md](references/matter-complexity-factors.md) before finalizing the conclusion.

## Matter-Type-Specific Signals
Use unit-style comparisons only when the denominator is actually available.

### Litigation and Investigations
Useful denominators may include:
- Motion drafted;
- Deposition;
- Hearing or mediation day;
- Parties;
- Custodian count;
- Document volume band; and
- Phase-specific spend.

### Commercial Contracts and Procurement
Useful denominators may include:
- Contract family or template type;
- Contract / agreement drafting;
- Negotiation rounds;
- Agreement complexity band; and
- Turnaround expectations.

### Corporate, M&A, and Diligence
Useful denominators may include:
- Transaction size band;
- Securities;
- Target company analysis / due diligence;
- Acquired company integration;
- Number of entities or jurisdictions;
- Volume of documents reviewed; and
- Phase-specific workstream.

### Employment, Regulatory, Privacy, and IP
Useful denominators may include:
- Claim count;
- Filing or response type;
- Administrative agency;
- Patent, mark, or trade dress family count;
- DPIA, PIA, DSAR, or privacy audit;
- Interview count; and
- Scope of investigation or response.

## External Directional Benchmarks
Use external material only as directional context. When using it, state:
- The source type;
- The year or period;
- The geography or jurisdiction;
- The role mix or seniority assumptions if known; and
- Why the source is only a directional reference.

Do not use public benchmark material as a substitute for company-specific history, approved commercial terms, or matter-specific complexity.

## Confidence Downgrade Rules
- High confidence: strong internal comparator with similar scope and reliable data.
- Moderate confidence: usable internal comparator with meaningful limitations, or highly relevant same-firm history.
- Low confidence: public directional benchmark, thin sample, incomplete normalization, or heuristic estimate.

## Required Benchmark Narrative
Every benchmark conclusion should state:
1. What was compared;
2. Why the comparator was selected;
3. Key limitations; and
4. Whether the result is a rule breach, efficiency concern, or directional observation only.
