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Detailed Assessment of Costs – Paying Party Costs Lawyers

Detailed Assessment is the court process for determining the amount of legal costs payable where the parties cannot reach agreement. SPH Costs represents paying parties in Detailed Assessment proceedings throughout England & Wales. Our Costs Lawyers provide specialist advice from the initial review of a Bill of Costs and preparation of Points of Dispute through to negotiation, provisional assessment and contested Detailed Assessment hearings.

Our Costs Lawyers can, where appropriate, go on the court record and conduct the costs proceedings on behalf of the paying party. This allows instructing solicitors to hand over the day-to-day management of the costs dispute to a specialist rather than simply outsourcing individual drafting tasks.

Whether you are an insurer, local authority, housing association, business or solicitor acting for a paying party, our objective is to identify the strongest grounds for reducing the Bill and develop a clear strategy for resolving the costs dispute.

What Is Detailed Assessment of Costs?

Detailed Assessment is the procedure by which the Court determines the amount of costs payable under a costs order where those costs have not been agreed between the parties. The procedure is governed principally by CPR Part 47 and involves consideration of issues including:

• Reasonableness

• Proportionality

• Hourly rates

• Fee earner grades

• Time claimed

• Counsel's fees

• Expert fees

• Disbursements

• Duplication

• Recoverability

• Conduct

• The terms and scope of the underlying costs order

 

Although individual entries within a Bill of Costs may be challenged, effective Detailed Assessment requires consideration of the Bill as a whole.  A technically strong challenge should identify the issues capable of producing meaningful reductions rather than simply objecting to every item.

When Should a Paying Party Seek Detailed Assessment Advice?

Specialist costs advice is particularly valuable where:

• A Bill of Costs has been served

• The amount claimed appears disproportionate

• Hourly rates appear excessive

• Senior fee earners have undertaken routine work

• Significant Counsel or expert fees are claimed

• There appears to be duplication between fee earners

• Recoverability of particular categories of work is disputed

• Points of Dispute need to be prepared

• Negotiations have stalled

• Provisional Assessment is anticipated

• A contested Detailed Assessment hearing is likely

 

Early involvement allows the Bill to be considered strategically before positions become entrenched or important procedural opportunities are lost.

Detailed Assessment Strategy for Paying Parties

Successful Detailed Assessment is rarely about challenging every entry in a Bill.  The strongest approach is usually to identify the issues that have the greatest potential impact upon the paying party's overall liability. Our Costs Lawyers consider matters including:

• The value and complexity of the underlying litigation

• The amount of costs claimed

• The procedural history

• The applicable costs order

• Proportionality

• Hourly rates

• Fee earner delegation

• Duplication

• Counsel and expert involvement

• Recoverability

• Conduct

• The likely costs and benefits of proceeding to assessment

 

This allows a strategy to be developed around the strongest technical and commercial arguments.

 

Reviewing the Bill of Costs

The first stage is usually a detailed review of the Bill.  We consider whether the costs claimed properly reflect the work reasonably and proportionately required by the litigation. Potential issues may include:

• Excessive time

• Excessive hourly rates

• Incorrect fee earner grades

• Partner or senior fee earner involvement in routine work

• Multiple fee earners undertaking similar tasks

• Excessive correspondence

• Unnecessary attendances

• Duplication between solicitors and Counsel

• Disproportionate expert fees

• Work falling outside the recoverable costs

• Procedural or technical issues affecting entitlement

 

The purpose of the review is not merely to identify reductions. It is to determine which arguments should form the foundation of the paying party's position.

 

Points of Dispute

Points of Dispute are a critical stage of the Detailed Assessment process. Well-drafted Points of Dispute should identify the paying party's case clearly and focus attention on the issues capable of producing meaningful reductions.

SPH Costs regularly prepares Points of Dispute addressing:

• Hourly rates

• Fee earner grading

• Excessive time

• Delegation

• Duplication

• Proportionality

• Counsel's fees

• Expert fees

• Disbursements

• Recoverability

• Procedural issues

• The scope of the costs order

 

Generic objections can weaken the paying party's position. Our approach is to develop Points of Dispute around the particular facts and procedural history of the case. If you require Points of Dispute to be prepared following service of a Bill of Costs, see our Draft Points of Dispute service.

 

Negotiating Costs Before Detailed Assessment

A substantial proportion of costs disputes can be resolved without a contested assessment hearing. Effective negotiation requires more than simply exchanging percentages.  The strength of the Points of Dispute, the likely assessment outcome and the potential costs of continuing the dispute should all inform settlement strategy. We assist paying parties with:

• Evaluating offers

• Formulating settlement proposals

• Negotiating reductions

• Assessing litigation risk

• Advising upon the commercial consequences of proceeding to assessment

 

A strong written case can significantly improve negotiating leverage.

 

Provisional Assessment

Where CPR 47.15 applies, Detailed Assessment may proceed by provisional assessment on the papers.

The written case is therefore particularly important. The Court will ordinarily consider the Bill, Points of Dispute, Replies and supporting documentation without the parties attending an initial hearing. This places considerable importance on the quality and precision of the paying party's written arguments. Where appropriate, we prepare the case for provisional assessment and advise upon the outcome and any subsequent procedural steps.

Contested Detailed Assessment Hearings

Where costs cannot be resolved through negotiation or provisional assessment, the dispute may proceed to a contested Detailed Assessment hearing. Preparation is critical. By this stage, the principal issues should already have been identified and developed through the Points of Dispute and subsequent negotiations. Our Costs Lawyers can provide representation throughout the Detailed Assessment process, including where appropriate:

• Conduct of the costs proceedings

• Preparation for assessment

• Advice upon Replies

• Negotiation

• Evidence and supporting documentation

• Technical costs arguments

• Hearing preparation

• Advocacy and representation

 

The objective is to maintain a consistent strategy from the initial Bill review through to final determination.

Costs Lawyer Representation at Detailed Assessment

There is an important distinction between instructing a Costs Lawyer and obtaining drafting assistance alone.

SPH Costs has regulated Costs Lawyers who can, where appropriate, go on the court record and conduct costs proceedings. This means that an instructing solicitor can hand over management of the costs dispute to a specialist who can deal with the proceedings from Points of Dispute through to assessment. This can include:

• Correspondence with the receiving party

• Procedural management

• Negotiations

• Applications arising within the costs proceedings

• Assessment preparation

• Representation at hearings

 

For firms dealing with substantial or recurring paying-party work, this can significantly reduce the amount of solicitor time required to manage the costs dispute.

Hourly Rate Challenges

Hourly rates frequently have a substantial effect upon the overall value of a Bill. We consider:

• Guideline Hourly Rates

• The location of the work

• The nature and complexity of the litigation

• The experience reasonably required

• The grade of fee earner undertaking the work

• Whether enhanced rates are justified

• Whether routine work has been undertaken at an unnecessarily senior level

 

Hourly rates should not be considered in isolation. The grade of fee earner, nature of the task and time claimed can be equally important. For further information, see our Guideline Hourly Rates 2026 guide.

 

Fee Earner Delegation and Duplication

A Bill may contain work that was reasonably required but undertaken at an unnecessarily senior level. We regularly consider whether:

• Partners have undertaken routine work

• Grade A fee earners have performed tasks suitable for junior fee earners

• Multiple fee earners have reviewed the same material

• Internal communications have generated unnecessary costs

• Solicitors and Counsel have duplicated work

• Multiple attendees were reasonably required

 

Effective challenges focus upon the reasonable and proportionate cost of undertaking the work rather than simply whether the work occurred.

Proportionality

Proportionality can be a significant issue at Detailed Assessment. The Court considers the relationship between the costs claimed and the matters in issue in the proceedings. Relevant considerations may include:

• The sums involved

• The value of any non-monetary relief

• Complexity

• Additional work generated by the conduct of the paying party

• Wider factors such as reputation or public importance where applicable

 

A Bill can contain individual items that appear reasonable while the overall level of costs remains disproportionate.

A proportionality argument therefore needs to be developed in the context of the case as a whole.

 

Counsel, Experts and Disbursements

Counsel's fees, expert fees and other disbursements can form a substantial part of a Bill of Costs. We consider issues including:

• Whether the expense was reasonably incurred

• Whether the level of expertise was appropriate

• Whether the amount claimed is reasonable

• Whether work was duplicated

• Whether additional conferences, reports or attendances were justified

• Whether the expenditure was proportionate to the issues in dispute

 

These items should be considered as part of the overall assessment strategy rather than treated in isolation.

Recoverability and Technical Costs Issues

Some of the most significant reductions at Detailed Assessment arise from questions of recoverability rather than the amount claimed for individual items. Depending upon the case, issues may include:

• The scope of the costs order

• Recoverability of particular periods of work

• Pre-action costs

• Discontinuance

• Procedural compliance

• Costs relating to unsuccessful or abandoned issues

• The effect of offers

• Entitlement to particular disbursements

• Other technical issues affecting the receiving party's entitlement to costs

 

Identifying these issues at the beginning of the assessment can materially alter the value of the dispute.

 

Why Paying Parties Can Overpay

Paying parties can incur unnecessary costs where the Bill is approached simply as a mathematical exercise.

Common problems include:

• Generic Points of Dispute

• Challenging every item without prioritising stronger arguments

• Focusing exclusively on hourly rates

• Failing to develop proportionality arguments

• Missing technical recoverability issues

• Failing to consider the Bill as a whole

• Negotiating without a realistic assessment of likely outcomes

• Allowing procedural deadlines to reduce negotiating leverage

 

A coherent assessment strategy should combine technical costs analysis with commercial judgment.

 

Detailed Assessment for Local Authorities and Institutional Paying Parties

SPH Costs regularly assists organisations facing repeated or substantial claimant costs exposure. We act for:

• Local authorities

• Housing associations and registered providers

• Insurers

• Businesses

• Public bodies

• Solicitors acting for institutional paying parties

 

For organisations dealing with recurring Bills of Costs, using a specialist costs team can also help identify repeated patterns of over-claiming and develop a consistent approach across a portfolio of cases.  Local authorities and housing providers can also visit our Paying Party Costs for Local Authorities & Housing Associations page.

Detailed Assessment and the Wider Paying Party Process

Detailed Assessment is normally one part of a wider costs dispute. Depending upon the stage you have reached, our related Paying Party services include:

Paying Party Costs – specialist costs support for paying parties

Challenge a Bill of Costs – where a Bill has been received and requires review

Draft Points of Dispute – preparation of detailed Points of Dispute

Bill of Costs Served – What Should Paying Parties Do Next? – practical guidance following service

Guideline Hourly Rates 2026 – current guidance on hourly rates

The appropriate strategy will depend upon the Bill, the costs order, the underlying proceedings and the stage the dispute has reached.

Need Help With a Detailed Assessment?

If you have been served with a Bill of Costs or are already involved in Detailed Assessment proceedings, SPH Costs can provide specialist paying-party costs advice. Our Costs Lawyers can assist from the initial review of the Bill and preparation of Points of Dispute through to negotiation, provisional assessment and contested Detailed Assessment proceedings. We act for paying parties throughout England & Wales and can, where appropriate, take over conduct of the costs proceedings, allowing the instructing solicitor to hand day-to-day management of the costs dispute to a specialist Costs Lawyer.

Telephone: 01772 435550

Email Costs Lawyer Andrew Armson to discuss your requirements.

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