What Makes a Good Bill of Costs?
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A well-prepared Bill of Costs is about far more than recording time and totalling figures. It is one of the most important documents in the costs recovery process and can have a significant impact on the amount ultimately recovered.
At ARC Costs, we regularly prepare and negotiate Bills of Costs across a wide range of litigation, from personal injury and clinical negligence claims to heavy commercial disputes and actions against public authorities. One lesson stands out above all others. A strong Bill of Costs is clear, accurate, proportionate and capable of withstanding detailed scrutiny.
Our experienced Director and Costs Lawyer, Robert Collington shares some of the key features that make for an effective Bill of Costs and explains why investing time in preparation can pay dividends during negotiation and detailed assessment.
A good Bill of Costs starts with a well-managed file
The quality of a Bill of Costs is often determined long before drafting begins.
Comprehensive attendance notes, accurate time recording, properly organised documents and clear file management all make the drafting process more efficient and place the receiving party in a stronger position if the costs are challenged.
By contrast, incomplete records or vague descriptions can make it difficult to justify work carried out, leaving the paying party with opportunities to argue for reductions.
For solicitors, good file management is one of the simplest ways to maximise recoverable costs.
Accuracy is essential
Every entry within a Bill of Costs should accurately reflect the work undertaken and the time reasonably spent carrying it out.
Descriptions should be sufficiently detailed to explain why the work was necessary without becoming repetitive or unnecessarily lengthy.
For example, a generic entry such as “review documents” is unlikely to assist a costs judge or paying party. A more informative narrative explaining that the work involved reviewing medical records, witness evidence or expert reports provides valuable context and demonstrates why the time claimed was reasonable.
Accuracy also extends to dates, fee earner grades, hourly rates and disbursements. Small errors can undermine confidence in the bill as a whole.
The bill should tell the story of the litigation
One of the most overlooked aspects of costs drafting is the importance of context.
A well-prepared Bill of Costs should reflect the progression of the underlying litigation and enable the reader to understand how the case developed over time.
Where a claim involved complex disclosure exercises, multiple experts, extensive negotiations or significant procedural developments, those factors should be evident from the bill itself.
At ARC Costs, we often find that presenting the narrative clearly can make negotiations more productive because the paying party can better appreciate why certain work was undertaken.
Proportionality should always be considered
Even where work has genuinely been carried out, it may still be challenged if the overall costs appear disproportionate.
When preparing a Bill of Costs, consideration should therefore be given to whether the time claimed reflects the complexity, value and importance of the case.
For example, routine correspondence undertaken by senior fee earners may attract criticism if it could reasonably have been delegated.
Likewise, excessive duplication between members of the legal team or multiple attendances at conferences and hearings may invite reductions during negotiation or detailed assessment.
A good Bill of Costs demonstrates that resources have been used efficiently and appropriately throughout the litigation.
Anticipate the arguments that will be raised
One of the advantages of instructing specialist costs lawyers is experience.
Having dealt with thousands of costs disputes, it becomes possible to anticipate many of the arguments likely to be advanced by paying parties before they are ever raised.
Common challenges include:
- The reasonableness of hourly rates.
- Allegations of duplication.
- Excessive time spent on correspondence or attendance notes.
- Expert fees said to be unnecessary or disproportionate.
- Counsel’s fees and conference costs.
- Work said to fall outside approved costs budgets.
If you consider these issues during drafting, it is often possible to present the bill in a way that reduces the likelihood of dispute.
Costs budgeting should not be ignored
In budgeted cases, the relationship between the Bill of Costs and any approved costs budget is critical.
Overspends should be identified and carefully considered. If there are significant developments justifying departure from the approved figures, those reasons should be properly documented and supported.
We have acted in numerous matters where developments after budgeting, such as additional expert evidence, extended disclosure exercises or settlement meetings, provided good reason to depart from the approved budget.
Addressing these issues proactively often places the receiving party in a much stronger position if the costs are later challenged.
Disbursements deserve careful attention
Disbursements are frequently scrutinised during negotiations.
Expert fees, court fees, counsel’s fees and medical agency charges should all be presented clearly and supported where appropriate.
In complex litigation, the involvement of multiple experts may be entirely reasonable, but the bill should make it apparent why those experts were necessary and how they contributed to progressing the claim.
Failure to explain significant disbursements can lead to avoidable disputes and delays in settlement.
Presentation matters
Whilst substance is paramount, presentation should not be overlooked.
A logically structured, well-formatted Bill of Costs is easier for paying parties, costs judges and negotiators to review.
Clear categorisation of work, consistent narratives and properly organised schedules all contribute to a more persuasive document.
Professional presentation also signals that the receiving party has approached costs recovery carefully and methodically.
Why early specialist involvement can make a difference
Many firms only seek costs advice once the substantive litigation has concluded.
In our experience, involving costs specialists earlier can often improve outcomes.
Advice on budgeting, time recording practices, recoverability and proportionality throughout the life of the case can reduce later disputes and maximise recovery.
We have also seen situations where early review identifies issues that can be addressed before they become obstacles during detailed assessment.
Lessons from practice
Some of the most successful Bills of Costs we have prepared have not necessarily been the largest.
Instead, they have been the ones that accurately reflected the work undertaken, anticipated likely challenges and presented the claim in a logical, evidence-based manner.
Equally, we have encountered high-value claims where avoidable drafting issues or poor record keeping created unnecessary disputes that delayed recovery and increased costs for all parties.
The quality of the Bill often shapes the course of negotiations from the outset.
How ARC Costs can help
At ARC Costs, we prepare Bills of Costs for a wide variety of claims, including clinical negligence, personal injury, commercial litigation, housing disrepair and actions against public authorities.
Our team works closely with solicitors to produce Bills of Costs that are accurate, strategically drafted and designed to maximise recovery. We also assist with negotiations, Points of Reply, costs budgeting and detailed assessment proceedings.
A good Bill of Costs is more than a procedural document; it is an opportunity to present the value of the work undertaken and to place your client in the strongest possible position for recovery.