How Paying Parties Challenge a Bill of Costs at Detailed Assessment

Paying parties can significantly reduce exposure by advancing structured challenges to a bill of costs. Effective disputes focus on hourly rates, proportionality, delegation, scope of work, and procedural compliance, supported by properly drafted Points of Dispute and a clear strategy for detailed assessment. For our paying party services click here.

What a Bill of Costs Can Be Challenged On

A bill of costs is not accepted at face value. Paying parties routinely challenge:

• hourly rates and grade of fee earner

• duplication of work

• lack of delegation

• disproportionate time claimed

• work outside the scope of the claim

• non-compliance with costs management orders

These issues form the foundation of Points of Dispute and shape negotiation strategy.

Hourly Rate and Guideline Hourly Rate Challenges

One of the most common reductions arises from hourly rate disputes. Paying parties assess whether the rates claimed exceed the Guideline Hourly Rates and whether the level of fee earner was appropriate for the work undertaken. Routine tasks carried out at senior level frequently attract reductions.

Proportionality and Delegation

Even where work was reasonably undertaken, costs may be reduced if the total is disproportionate to the value, complexity, and importance of the claim. Proper delegation to appropriate grades is central to proportionality and is a key area of challenge at assessment.

Fixed Costs Scope Arguments

Where fixed recoverable costs may apply, paying parties consider whether the claim falls within the regime and whether work claimed sits outside the permitted stages. Scope disputes often depend on the procedural history of the litigation and are aligned with fixed costs principles.

Procedural and Conduct Challenges

Failures in procedural compliance, unnecessary applications, or unreasonable conduct may affect recoverability. Paying parties rely on these factors to argue for reductions or adverse costs consequences in line with recoverability and conduct principles.

Strategy Before Serving Points of Dispute

Effective challenges begin with a structured review of the pleadings, budgets, complexity, and value of the claim. This allows Points of Dispute to focus on the areas most likely to produce reductions and supports commercial settlement before assessment.

Reducing Exposure Before Detailed Assessment

Most costs disputes are resolved through negotiation. Clear, evidence-based Points of Dispute improve the paying party’s position and frequently result in substantial reductions prior to a hearing.

Key Takeaways for Paying Parties

• Bills of costs can be challenged on hourly rates, proportionality, delegation, and scope

• Guideline Hourly Rates are a starting point, not an entitlement

• Fixed costs and procedural compliance can limit recovery

• Structured Points of Dispute improve negotiation outcomes

• Early strategy reduces exposure at detailed assessment