When to Involve Legal Costs Specialists

Legal costs are no longer a secondary consideration in litigation. In many cases, they are as significant as the dispute itself. Whether acting for a claimant or defendant, knowing when to involve legal costs specialists can make a substantial difference to recoverability, exposure, and overall strategy.

From our experience, costs problems most often arise not because the law is misunderstood, but because specialist costs input is sought too late. We explain when it is sensible to involve a costs draftsman, costs lawyers, or other specialist costs professionals, and how early engagement can protect a claim for costs and reduce risk.

Why Legal Costs Require Specialist Input

Costs are a technical and highly regulated area of law in England and Wales. The rules governing each area of costs, including, recovery, assessment, and proportionality are complex, and they continue to evolve. While solicitors are experts in their substantive areas of law, managing all aspects of costs alongside the litigation itself can be challenging.

A specialist legal costs service focuses exclusively on these issues. Legal costs specialists understand how costs are scrutinised, challenged, and ultimately allowed or disallowed by the court. Their role is not simply administrative; it is strategic.

Early Involvement: Before Costs Become a Problem

One of the most effective times to involve specialist costs support is at an early stage of the case. Early advice allows costs to be structured correctly from the outset, reducing the risk of disputes later.

This is particularly important where:

• the case is likely to be high value or long-running,
• multiple expert disciplines are anticipated,
• senior fee earner involvement will be required, or
• the case involves complex procedural steps.

Early input from law costs draftsmen or costs lawyers can help ensure that time recording, delegation, and strategy align with future costs recovery objectives.

Costs Budgeting and Ongoing Management

Cost budgeting is one of the clearest triggers for involving legal costs specialists. Budgets are not simply forecasts; once approved, they can bind the parties and the court.

Specialist input is particularly valuable when:

• preparing an initial costs budget,
• responding to an opponent’s budget,
• negotiating budgets at a case management conference, or
• considering whether a budget variation is required.

Errors at this stage can have serious consequences. Involving a costs specialist helps ensure that budgets are realistic, defensible, and aligned with the likely demands of the case.

When Acting for the Receiving Party

For the receiving party, the primary objective is to maximise recovery of reasonable and proportionate costs. This is an area where specialist support is often underestimated.

A costs specialist can assist by:

• advising on recoverability throughout the case,
• identifying potential weaknesses before they are exploited by the opponent, and
• ensuring that costs incurred are properly justified.

Early involvement significantly strengthens the receiving party’s position when it comes to preparing the bill of costs and responding to challenges.

Preparing and Negotiating the Bill of Costs

The preparation of a bill of costs is one of the most critical stages in the costs process. This is where the work undertaken throughout the litigation is translated into a formal claim for recovery.

Specialist involvement is strongly recommended where:

• the bill is substantial in value,
• the case involves complex procedural history, or
• the paying party is likely to take aggressive points.

An experienced costs draftsman will ensure that the bill is accurate, compliant, and strategically presented to withstand scrutiny. This often leads to more productive negotiations and reduces the likelihood of prolonged disputes.

Responding to Points of Dispute

When points of dispute are served, the tone and quality of the response can determine the outcome of the costs process.

Specialist costs input is particularly valuable where:

• points of dispute raise technical or procedural challenges,
• proportionality is heavily contested, or
• the objections appear generic but carry hidden risk.

Costs specialists understand how such points are viewed by costs judges and can help craft effective replies that protect the claim without over-arguing weak issues.

Acting for Paying Parties

For paying parties, legal costs specialists play an equally important role. Challenging an opponent’s costs requires a detailed understanding of what is properly recoverable and where genuine weaknesses lie.

Specialist involvement is advisable where:

• the bill appears excessive or disproportionate,
• there are concerns about delegation or hourly rates, or
• the case has escalated beyond what was reasonably required.

A focused costs strategy can often achieve significant reductions without the need for a full assessment hearing.

Detailed Assessment and Assessment Hearings

Where disputes cannot be resolved through negotiation, the matter may proceed to detailed assessment. This is a specialist forum, and the outcome often turns on the quality of the costs arguments advanced.

Involving costs lawyers or experienced law costs draftsmen at this stage is critical. They are familiar with the approach taken by costs judges and understand how to frame arguments on reasonableness, proportionality, and conduct.

At an assessment hearing, specialist advocacy can make the difference between a modest adjustment and a substantial reduction.

Supporting Law Firms and Clients

For a law firm, involving legal costs specialists is not a sign of weakness; it is a recognition that costs law is a specialist discipline in its own right.

Firms that engage costs specialists early often benefit from:

• improved recoverability,
• reduced risk of adverse costs decisions, and
• more predictable financial outcomes.

Clients, in turn, benefit from greater transparency and a clearer understanding of the financial implications of litigation.

When is It Too Late?

While it is rarely “too late” to involve a costs specialist, late involvement often limits what can be achieved. Once costs have been incurred, poor delegation or weak justification cannot always be remedied.

That said, specialist input can still add value at later stages, particularly in challenging or defending costs at detailed assessment.

How ARC Costs Can Assist

ARC Costs provides specialist legal costs support at every stage of litigation. Our experienced team of costs lawyers and law costs draftsmen advises on all aspects of costs, from early strategic guidance and cost budgeting through to drafting and negotiating Bills of Costs and dealing with Points of Dispute.

We act for both receiving and paying parties across England and Wales, supporting law firms, insurers, and clients with complex costs recovery issues in personal injury, commercial litigation, and Court of Protection matters.

Whether preparing for detailed assessment, representing clients at assessment hearings, or advising on proportionality and recoverability, ARC Costs delivers clear, practical advice designed to protect recovery and control exposure.