Eversheds has confirmed it has renewed its lucrative 'sole adviser' contract with US industrial conglomerate Tyco, adding that the structure of the deal could be rolled out to other clients in the near future.

The three-year extension is the longest the firm has received since it began its relationship with Tyco in 2006.

As part of the agreement, Eversheds' "default position" will be to provide Tyco with legal advice that is no more than a page long, though the client may request fuller reports. The firm has also promised to cap fees for matters it acts on for Tyco.

The company cannot start a matter in Europe, the Middle East or Africa without Eversheds first submitting a capped budget into Tyco's Serengeti e-billing and case management system.

That budget is then reviewed by Tyco's legal team. If the scope of the work changes, the firm has to go through the same process again, resubmitting a budget before work under the new scope is approved.

"We can't bill more than that capped fee in any circumstance," explains Eversheds' head of global client development Stephen Hopkins (pictured). "But as soon as the scope changes we go through the process again before we take on any work in the new scope."

Eversheds will cater for the vast majority of Tyco's work on more routine pensions, intellectual property, commercial real estate and litigation mandates. In areas such as major M&A transactions, however, Eversheds may refer work on to other firms with greater expertise whilst maintaining "the right to first refusal" on the project.

Eversheds could still handle the matter if it can show relevant experience in the jurisdiction concerned, and if a referral firm was used it would effectively act as a sub-contractor, adopting the Serengeti system and one page advice standard.

The firm has put in place a training programme for its lawyers to help them meet the requirements of the new deal, which sets out a "default position" to not provide legal advice longer than a page.

"We are not being prescriptive about it; if they want a more comprehensive view they can tell us and we can deliver it," said Hopkins. "It will be completely at Tyco's discretion if they need a full report on what the law is…[but] in 9 out of 10 cases that will not be the case."

"It's very much driven by the client. We won't save time or effort really. We have still got to do the same research. Sitting behind the scenes is the full memorandum, which they can call for if they want."

Hopkins, who still leads the Tyco relationship with corporate partner Stephen Hill also playing a key role, is confident that other clients will be keen to sign similar agreements with the firm.

"It will impact other clients…As soon as word gets out I expect they- and our competitors – will be clamouring after the same thing," he said. "I think we will trial this with Tyco….The UK might be responsive but others might not be."

Hopkins recently relocated to Hong Kong to work on client relationships in the Far East, with the firm looking to cash in on growth in overseas investment by Chinese companies in particular.

Competition partner Adam Ferguson has also made the move across to Hong Kong ahead of new regulation that comes into force next year, with compliance and anti-trust issues becoming "major issues" in the territory.