Chris
Insolvency Practitioners time spent on case supervision is based on the amount of time actually spent multiplied by the charge out rate of the various members of staff working on the file. So similar to your case, expcept most IPs put a cap on their fees generally between £800 and £1,200 per year. If the creditors want this work done more cheaply, then IPs will have to spend less time on the cases - and I personally do not feel that this will benefit anyone.
I am actually a great believer in results based fees - based on a percentage of realisations, but we will all have to await the outcome of Thursday's meeting to see what the banks have to say.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
For further details contact me at
http://www.melaniegiles.com and view my IVA blog at:
http://melaniegiles.blogs.iva.co.uk