When a case concludes, the successful party is usually entitled to recover their legal costs from the other side in accordance with the default rule set out in CPR 44.2. If the amount of costs cannot be agreed, the dispute is resolved through detailed assessment proceedings. Detailed assessment is the legal process by which the Court decides what costs are reasonable and proportionate.

Detailed assessment is governed by Part 47 of the Civil Procedure Rules (CPR) and ensures that the Paying Party pays only what is fair, while the Receiving Party recovers what is properly due. At ARC Costs, our experienced law costs draftsmen and Costs Lawyers manage the entire process, from the drafting of the Bill of Costs, commencement of the detailed assessment process (via service of a Notice of Commencement), to the conducting of negotiations to reach settlement, or providing representation at any hearing.

What Is Detailed Assessment?

The phrase of “detailed assessment” can mean one of two things.

The detailed assessment procedure is the Court’s formal process for determining how much a Receiving Party can recover in legal costs. It applies when parties cannot agree the total payable after judgment or settlement.  The process itself however, doesn’t actually warrant the Court’s input unless a hearing is required to be listed.

A detailed assessment hearing (which can be either on paper, a provisional assessment hearing, or attended, which is a detailed assessment hearing) is generally the first time the costs issue comes before a Court to adjudicate what costs should be payable.  A detailed assessment hearing is generally the last step in any detailed assessment proceedings, akin to a Trial in the main proceedings, but for costs, and is only required in a small number of cases where settlement between the parties is simply not possible.

This procedure may take place in both the County Court and the High Court, requiring the Receiving Party to justify every element of their Bill of Costs. The Court’s task is to ensure that the amounts claimed are reasonable, necessary, and proportionate.

Step 1: Commencement of Detailed Assessment

To initiate the process, the Receiving Party must file and serve a Bill of Costs and Notice of Commencement (Form N252) on the Paying Party. These documents mark the commencement of detailed assessment proceedings and trigger the relevant deadlines.  21 days is given as a deadline within the Notice of Commencement, for the Paying Party to serve Points of Dispute.

The rules specify the period for commencing detailed assessment proceedings, is usually within three months of the final costs order or Part 36 Offer acceptance. If detailed assessment proceedings are commenced more than three months after the date of that order or acceptance, the Paying Party can apply for an Unless Order to enforce commencement of proceedings, failing which the claim for costs can be struck out.

Step 2: Serving Points of Dispute – CPR 47.9

Under CPR 47.9, once served with the Bill of Costs and Notice of Commencement, the Paying Party has 21 days to serve their Points of Dispute. This document sets out specific objections to items in the Bill, such as hourly rates, time spent, or the proportionality of certain phases.

These are the legal arguments the Paying Party intends to rely upon at assessment, and in the event of an attended detailed assessment hearing, forms the backbone and structure of the submissions that will be raised.

Failure to respond within 21 days allows the Receiving Party to apply for a Default Costs Certificate, which may result in the entire Bill being awarded without further hearing.

Step 3: Points of Reply – CPR 47.13

The Receiving Party may then serve Points of Reply within 21 days of receiving the Points of Dispute. These set out any rebuttals to the Paying Party’s Points of Dispute and justify the amounts claimed.  Concessions can be made within the Replies, setting out any counter proposals to those set out in the Points of Dispute.

Although not compulsory, Points of Reply can strengthen the Receiving Party’s position, particularly where complex legal or factual disputes are raised.  It is also noticeable in the Rules that there is no sanction for serving Points of Reply late, unlike Points of Dispute.

Step 4: Negotiation and Settlement

At ARC Costs, we encourage resolution through negotiation or other forms of ADR. Our experienced team achieves amicable settlements in over 90% of cases, often within one or two months of serving the Bill.

We also advise on making any offers to settle under Part 36, a powerful tool that can shift costs risks and encourage early agreement. By resolving matters at this stage, both parties avoid the time and expense of a Court hearing.

Step 5: Filing for Detailed Assessment

If the dispute cannot be resolved, the Receiving Party can file a detailed assessment of costs with the Court, submitting a request for a detailed assessment together with the Bill, Points of Dispute, and Points of Reply.

The Court will then fix the case for either Provisional Assessment or a Detailed Assessment Hearing, depending on the value of the Bill.  Generally matters under £75,000 in value will be listed for Provisional Assessment in the first instance, unless any complex costs issues arise.

Provisional Assessment

If the Bill of Costs is valued at £75,000 or less, the case is usually listed for Provisional Assessment. This is determined on paper, with no need for attendance. The Judge reviews the documentation and issues a written decision setting out what costs are allowed.

The costs of a Provisional Assessment are capped at £1,500 + VAT + Court fees, making it a cost-effective method of resolving disputes of modest value.

Detailed Assessment Hearing

Where the Bill exceeds £75,000, or the Court otherwise directs, the matter proceeds to a Detailed Assessment Hearing. This is an attended hearing where advocates for both sides make oral submissions before a Costs Judge.

There is no cap on recoverable costs at this stage, but the risk of adverse Court orders increases. Our experienced advocates ensure that only matters of genuine merit proceed to hearing, protecting clients from unnecessary risk.

Step 6: After the Court Orders Assessment

Once the Court reaches its decision, the successful party will usually recover their costs of the assessment process plus interest on the assessed amount.

If the Receiving Party obtains a result they believe is too low following a Provisional Assessment, they may request an oral hearing within 21 days. However, they must improve the outcome by at least 20%; otherwise, they risk paying the other side’s costs of that hearing.

If the matter has already been dealt with at a Detailed Assessment Hearing, further challenge requires an appeal to a higher Court.

How ARC Costs Can Help

Our specialist team offers a comprehensive service throughout the detailed assessment process. We can:

• Draft compliant Bills of Costs reflecting all recoverable work.
• Manage the preparation and service of Points of Dispute and Points of Reply.
• Negotiate settlements and advise on Part 36 offers.
• Apply for or oppose Default Costs Certificates.
• Represent clients at Provisional and Detailed Assessment Hearings.
• Advise on post-assessment steps, including oral hearings and appeals.

We understand the nuances of local Courts and apply this knowledge to secure the best outcomes possible for our clients.

Why Choose ARC Costs?

Our approach is strategic, transparent, and focused on results. We provide:

• Dedicated support – Each Solicitor client is assigned a costs manager familiar with their practice and typical recovery levels.
• Proportionate strategies – We only take strong cases to hearing, reducing your exposure to adverse costs.
• Efficient negotiation – We resolve most disputes within one to two months, saving clients time and money.
• Proven results – Our success rate in assessment hearings is in excess of 70%, and we only advance matters to assessment that we consider have strong prospects.

 

Frequently Asked Questions About Detailed Assessment Proceedings

What is the process for detailed assessment?

The process starts when the Receiving Party serves a Bill of Costs and Notice of Commencement. The Paying Party then has 21 days to serve Points of Dispute. If unresolved, the matter proceeds to a Provisional or Detailed Assessment where the Court determines reasonable costs.

Can you prepare Points of Dispute or Replies?

Yes. Our team are independent experts (who can represent Paying or Receiving Parties) and our Costs Lawyers are regulated to conduct litigation and prepare reserved instruments, such as statements of case.  Our team is effective and preparing clear and persuasive Points of Dispute for Paying Parties and comprehensive Points of Reply for Receiving Parties, addressing all legal and factual issues.

Can you attend detailed assessment hearings on my behalf?

Absolutely. Our experienced Costs Lawyers regularly represent clients at both oral review hearings (following Provisional Assessment) and Detailed Assessment Hearings, presenting oral submissions before the Judge.  We also have strong links with a number of changes and regulated advocates if one of our team is not available, or it is more cost effective to instruct a more local advocate.

Do you handle costs budgeting and Precedent H preparation?

Yes. We assist with all aspects of costs management, including the preparation and revision of Precedent H budgets and Precedent R reports under CPR 3.15A.

Can you challenge an opponent’s Bill of Costs?

Yes. We can review an opponent’s Bill, identify weaknesses, and raise detailed Points of Dispute to reduce the claimed amount.

What happens if the Paying Party disputes the Bill?

We attempt to resolve disputes through negotiation, but, if necessary, we handle all procedural steps through to Provisional or Detailed Assessment.  It is highly unusual for a Paying Party not to dispute a Bill, and it is extremely rare that 100% of your costs would be recovered on assessment, and typically 70 -75% recovery is achievable, though each case turns on its own facts and recovery can be higher/lower.

What is the timescale for the detailed assessment process?

Most matters settle within one to two months of service of the Bill. Cases requiring a hearing may take longer, depending on the Court’s timetable.  The value of the Bill can also be a factor, with higher value disputes often have more complex arguments raised, and matters proceeding to a lengthy detailed assessment hearing can sometimes take up to a year, with more straight forward disputes sometimes resolving within 2 weeks to a month.

What are the common reasons for reductions in a Bill of Costs?

Typical reasons include duplication of work, excessive time claimed, disproportionate hourly rates, or use of senior fee earners for routine tasks.  Disbursements, such as expert and Counsel fees are also often challenged on assessment. Our Bills are drafted to withstand challenges as much as possible, though there are always elements of costs a Paying Party can seek to critique.

Contact ARC Costs

If you require expert advice or representation in detailed assessment proceedings, our dedicated team of costs lawyers and draftsmen is here to help.

We handle everything from the drafting of the Bill and service of Notice of Commencement, to the final assessment, ensuring the process runs smoothly and efficiently. Contact us today at info@arccosts.co.uk to discuss your case and secure the best possible result, or speak to one of the team by phone on 01204 397302.

 

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