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Detailed Assessment of Costs (CPR Part 47): Complete Guide to Bills, Points of Dispute and Assessment

  • 2 days ago
  • 6 min read

Updated: 20 hours ago



Detailed assessment of costs is the court process used to determine which legal costs are recoverable following litigation and in what amount. Where the parties cannot agree the level of costs payable after a costs order, the receiving party may commence detailed assessment proceedings. Detailed assessment is governed primarily by CPR Part 47 and involves the court examining the bill of costs, Points of Dispute, and Replies. The court determines whether the work undertaken was reasonably incurred and whether the total costs claimed are proportionate to the issues in dispute.

Understanding how detailed assessment works is essential for both paying and receiving parties when managing litigation exposure and protecting recoverability.


What Is a Detailed Assessment of Costs?


A detailed assessment occurs where the amount of costs payable has not been agreed following a costs order. The receiving party prepares and serves a bill of costs setting out the work undertaken and the costs claimed. The paying party may then respond with Points of Dispute identifying the reductions sought. The receiving party may serve Replies addressing those challenges.

Where the dispute cannot be resolved through negotiation, the court determines the recoverable costs through provisional assessment or an oral detailed assessment hearing. For further guidance on paying party strategy during this process see:


When Detailed Assessment Proceedings Arise


Detailed assessment proceedings commonly arise after:


• trial where one party is ordered to pay the other’s costs

• settlement of litigation where costs are not agreed

• interim costs orders following applications

• discontinuance of proceedings


Where the parties cannot agree the amount payable, the receiving party may begin detailed assessment proceedings to determine the recoverable costs.


The Stages of Detailed Assessment Proceedings

Detailed assessment proceedings follow a structured procedural process.

The typical stages are:


• preparation and service of the bill of costs

• service of Points of Dispute by the paying party

• service of Replies by the receiving party

• negotiation between the parties

• provisional assessment or oral detailed assessment hearing


Many disputes resolve through negotiation once the issues have been clarified in the Points of Dispute and Replies.


The Bill of Costs


The bill of costs sets out the work undertaken by the receiving party’s solicitors together with the costs claimed for that work. Bills must comply with the Costs Practice Direction and present the work undertaken in a structured and transparent format so that the court can assess reasonableness and proportionality. A typical bill of costs will include:


• profit costs claimed for fee earners

• disbursements such as counsel’s fees or expert fees

• time spent on each stage of the litigation

• VAT where applicable


The structure and presentation of the bill frequently influence how disputes develop during detailed assessment.


The Form and Content of a Bill of Costs (Practice Direction Requirements)


The Costs Practice Direction sets out how bills of costs must be structured for the purposes of detailed assessment. A bill of costs may contain the following sections:


• title page

• background information

• items of costs claimed

• summary showing total costs claimed

• schedules of time spent on non-routine attendances

• the required certificates


These requirements ensure that the court can identify the work undertaken and assess the reasonableness of the costs claimed.


Title Page Requirements


The title page of the bill of costs must set out:

• the full title of the proceedings

• the name of the party whose bill is being assessed

• the document establishing the right to assessment

• the VAT number of the legal representative where VAT is claimed

• details of any legal aid certificates or funding arrangements


This information confirms the legal basis for the claim and allows the court to identify the parties involved.


Background Information in the Bill


The background section explains the progress of the litigation up to the commencement of detailed assessment proceedings. This section normally includes:


• a brief description of the proceedings

• the status and grade of fee earners• the hourly rates claimed

• any agreement affecting recoverability of costs


The background provides the context needed for the court to evaluate the costs claimed.


Heads of Costs in the Bill


Items in the bill of costs are normally grouped under recognised heads of costs. These reflect the types of work undertaken during the litigation. Common heads include:


• attendances at court and upon counsel

• communications with the client

• communications with witnesses and experts

• communications with the court and third parties

• work done on documents

• settlement negotiations• work undertaken by agents


Each item within the bill must be consecutively numbered so that it can be individually assessed.


Routine and Non-Routine Communications


The Practice Direction distinguishes between routine and non-routine communications.

Routine communications typically include brief emails, letters or telephone calls that do not involve substantive legal work. These are normally claimed on a standard unit basis.

Non-routine communications involving substantive legal work must be recorded individually and set out in chronological order. Where there are large numbers of communications, the bill may refer to a schedule containing the full record of those items.


Division of Bills into Separate Parts


In certain circumstances the bill must be divided into separate parts.

This may occur where:


• different solicitors acted during the proceedings

• legal aid applied for part of the case

• different paying parties are responsible for costs

• different interest periods apply

• costs budgets apply


Where a costs management order has been made, the bill must also distinguish between incurred costs and estimated costs for each budget phase.


Points of Dispute

Points of Dispute are served by the paying party to challenge the bill of costs. These identify the specific reductions sought and explain the basis of the challenge. Common grounds include:


• hourly rate challenges

• duplication of work

• lack of delegation

• disproportionate time claimed

• work outside the scope of the claim



Hourly Rates and Guideline Hourly Rates


One of the most common areas of dispute at detailed assessment concerns the hourly rates claimed by solicitors. Courts frequently use the Guideline Hourly Rates 2026 as a starting point when assessing whether rates are reasonable.


Disputes commonly arise where:


• rates exceed guideline levels

• the grade of fee earner is challenged

• delegation between fee earners is questioned

• the complexity of the work is disputed


Courts may allow higher rates where the complexity of the litigation justifies them.


Proportionality in Detailed Assessment


Even where individual items of work are reasonable, the court must consider whether the overall costs claimed are proportionate. The court considers factors including:


• the sums in issue

• the complexity of the case

• the importance of the litigation

• the conduct of the parties


Where the total costs appear disproportionate, the court may apply global reductions.


Fixed Recoverable Costs and Intermediate Track Disputes


Detailed assessment disputes also arise where fixed recoverable costs under CPR Part 45 apply. Issues commonly include:


• whether the claim falls within the fixed costs regime

• whether work falls outside the permitted stages

• whether exceptional circumstances apply

Further guidance on the fixed costs regime can be found here:


Provisional Assessment


Many detailed assessments are initially determined through provisional assessment.

This is a paper-based process in which the court reviews the bill of costs, Points of Dispute and Replies without an oral hearing. The court then issues a written determination indicating the amount allowed. Where either party believes the provisional decision is incorrect, they may request an oral detailed assessment hearing.


Oral Detailed Assessment Hearings


Where a provisional decision is challenged, or where the dispute is unsuitable for paper determination, the court may conduct an oral detailed assessment hearing. At the hearing the parties present arguments concerning disputed items within the bill.

Typical issues include:

• hourly rates

• proportionality

• delegation between fee earners

• recoverability of disbursements

• procedural compliance


The costs judge will determine the final recoverable amount.


Why Early Costs Strategy Matters


The outcome of detailed assessment is rarely determined solely at the hearing stage.

Decisions made during the litigation often influence the arguments that arise later.

Early consideration of costs strategy can affect:


• how work is recorded in the bill

• the framing of Points of Dispute

• negotiation strategy

• the likelihood of settlement before assessment


A structured approach to costs strategy helps reduce exposure and improve recoverability.


Summary: Detailed Assessment of Costs


Detailed assessment is the court process used to determine the recoverable amount of legal costs following litigation. Disputes commonly arise concerning hourly rates, proportionality, delegation, fixed costs scope and procedural conduct. Successful outcomes depend not only on the technical accuracy of the bill of costs but also on the strategic presentation of arguments relating to reasonableness and proportionality.

Careful preparation and early specialist input can significantly influence the outcome of detailed assessment proceedings.



For practical guidance on challenging costs claims, see our guide on How Paying Parties Challenge a Bill of Costs at Detailed Assessment.


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Disclaimer

The content of this blog is provided for general information purposes only and does not constitute legal advice. The views expressed are those of SPH Costing Services Ltd and do not necessarily reflect the views of any instructing solicitor or client. No reliance should be placed on this content in relation to any specific matter, and independent legal advice should always be sought. SPH Costing Services Ltd accepts no liability for any loss or consequence arising from reliance on the information published.

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