Bill of Costs Served – What Should Paying Parties Do Next?
- 1 hour ago
- 2 min read
Receiving a Bill of Costs can create significant costs exposure.
Whether acting for an insurer, local authority, business or private client, the decisions taken immediately after service of a Bill of Costs can materially affect the amount ultimately payable.
Many paying parties miss opportunities to challenge costs effectively because key issues are not identified early enough.
Understanding the detailed assessment process and developing a clear strategy from the outset can significantly reduce exposure.
What Is a Bill of Costs?
A Bill of Costs is a detailed breakdown of legal costs claimed by the receiving party following litigation. It typically includes:
solicitor profit costs
counsel's fees
expert fees
court fees
disbursements
VAT
The Bill forms the basis of any detailed assessment proceedings where costs cannot be agreed.
Why Early Review Matters
Many Bills of Costs contain issues that may justify challenge.
Common examples include:
excessive hourly rates
duplication of work
disproportionate costs
excessive attendances
unnecessary correspondence
unreasonable expert costs
counsel fee disputes
Identifying these issues early often strengthens negotiating position and improves assessment outcomes.
Common Mistakes Paying Parties Make
Delaying Review
Time limits within detailed assessment proceedings can be important.
Delays may reduce strategic options and create unnecessary pressure.
Generic Challenges
Poorly drafted or generic objections frequently fail to achieve meaningful reductions.
Focusing Only on Individual Items
Many significant reductions arise from broader arguments concerning proportionality, conduct and case management.
Missing Settlement Opportunities
Effective analysis often assists in achieving commercial settlement before a contested hearing becomes necessary.
What Are Points of Dispute?
Points of Dispute set out the paying party's challenges to the Bill of Costs.
They frequently address:
hourly rates
time claimed
duplication
proportionality
counsel's fees
disbursements
Well-drafted Points of Dispute often form the foundation of a successful paying party strategy.
Can Costs Exposure Be Reduced?
In many cases, yes. Each Bill depends upon its own facts, but reductions frequently arise through:
proportionality challenges
hourly rate disputes
duplication arguments
unreasonable conduct issues
unnecessary work challenges
procedural deficiencies
Specialist analysis often identifies opportunities that might otherwise be overlooked.
The Importance of Proportionality
Even where individual items appear reasonable, the court may still consider whether the overall costs claimed are proportionate. Proportionality remains one of the most significant issues in many detailed assessment proceedings. Careful analysis of the wider litigation context is often essential.
Negotiation Before Assessment
Many disputes resolve without a final hearing. Effective preparation frequently assists with:
reducing exposure
strengthening negotiating position
narrowing issues
achieving commercial settlement
A well-prepared paying party often enters negotiations from a significantly stronger position.
How SPH Costs Assists
SPH Costs acts for:
insurers
local authorities
businesses
defendant solicitors
paying parties nationwide
We regularly assist with:
Bill reviews
proportionality challenges
negotiation strategy
costs exposure analysis
Speak to a Paying Party Costs Specialist
If your organisation has received:
a Bill of Costs
Notice of Commencement
Points of Dispute deadlines
detailed assessment proceedings
SPH Costs provides specialist paying party costs support across England & Wales.
