Points of Dispute: How Paying Parties Reduce a Bill of Costs

Mar 12
4 min read

Updated: 5 days ago

This guide explains how Points of Dispute work in detailed assessment.

If you require professional drafting, see: Draft Points of Dispute – Costs Draftsman Services - https://www.sphcosts.com/draft-points-of-dispute

Points of Dispute are the most important document in detailed assessment proceedings. They are where paying parties either reduce a bill of costs, or allow it to stand. In practice, the outcome of detailed assessment is rarely determined at the hearing. It is driven by:

how Points of Dispute are structured
whether proportionality is properly advanced
whether the key weaknesses in the bill are identified early

Weak or generic Points of Dispute frequently result in avoidable costs being allowed.

For a structured approach to reducing exposure, see: https://www.sphcosts.com/detailed-assessment-costs-disputes

What Are Points of Dispute?

Points of Dispute are the paying party’s formal response to a bill of costs served by the receiving party under CPR Part 47.

They identify:

the items challenged within the bill
the reductions sought
the basis of each objection

In practice, they define the scope of the dispute and form the foundation of both negotiation and assessment. Well-structured Points of Dispute focus on the issues most likely to influence the court rather than challenging every entry indiscriminately.

The Role of Points of Dispute in Detailed Assessment

Points of Dispute do more than respond to a bill, they shape the outcome of the entire process. They determine:

whether the matter settles before assessment
which issues the court focuses on
how the bill is evaluated as a whole

Detailed assessment is not simply a line-by-line exercise. The court considers the bill against CPR principles of reasonableness and proportionality. For a wider overview of how detailed assessment works, see: https://www.sphcosts.com/post/detailed-assessment-of-costs-guide

Precedent G – Points of Dispute Format

Points of Dispute are typically drafted using the Precedent G format contained in the Costs Practice Direction. This structure allows:

each item in the bill to be addressed
the objection to be clearly stated
the dispute to be understood efficiently by the court

The format usually includes:

item reference
the paying party’s objection
any reply from the receiving party
the court’s determination

Courts expect Points of Dispute to follow this structured approach so that issues can be identified quickly during assessment.

When Must Points of Dispute Be Served?

Under CPR Part 47, the paying party normally has 21 days from service of:

the Notice of Commencement
the Bill of Costs

to serve Points of Dispute.

Failure to do so may result in a Default Costs Certificate, allowing the receiving party to recover the full amount claimed without assessment.

For professional drafting support, see: Draft Points of Dispute – Costs Draftsman Services - https://www.sphcosts.com/draft-points-of-dispute

Common Grounds of Challenge

Points of Dispute typically focus on a number of recurring issues:

Hourly Rates

rates exceeding guideline levels
lack of justification for enhancement
incorrect fee earner grading

For current guidance, see:https://www.sphcosts.com/post/guideline-hourly-rates-2026

Delegation and Fee Earner Grade

routine work undertaken by senior fee earners
lack of supervision evidence
inefficient use of resources

Duplication of Work

multiple fee earners attending the same task
repeated internal communications
unnecessary review

Proportionality

Even where individual items are reasonable, the overall bill may still be disproportionate.

Courts consider:

value of the claim
complexity
importance of the litigation
conduct

Further guidance:https://www.sphcosts.com/post/proportionality-challenges-at-detailed-assessment

Work Outside Scope

unnecessary or irrelevant work
issues arising from procedural errors
work not reasonably required for the claim

Points of Dispute and Provisional Assessment

Many bills are determined through provisional assessment, a paper-based process.

Your written case is the case. The judge’s decision will reflect:

the Points of Dispute
the Replies
the structure and clarity of arguments

Poorly drafted Points of Dispute are difficult to recover later.

For more on this stage:https://www.sphcosts.com/post/oral-hearings-following-provisional-assessment

How Points of Dispute Influence Negotiation

Although Points of Dispute are a procedural requirement, their real value lies in negotiation. Strong Points of Dispute:

expose weaknesses in the bill
apply pressure on proportionality and rates
frequently lead to settlement before assessment

Weak or unfocused Points of Dispute rarely achieve meaningful reductions.

Points of Dispute as Part of a Wider Strategy

Points of Dispute do not operate in isolation. They form part of a wider detailed assessment strategy focused on reducing overall exposure. Effective strategy links: