Costs on Standard Basis: Greener Costs Advises

What are Costs on Standard Basis?

Costs on Standard Basis is one of two approaches to assessing costs during legal proceedings. The Civil Procedure Rules (CPR 44.3) details the types of costs regimes and provides the guidelines on which to follow for each route.

Costs that are assessed under standard basis costs are agreed during the detailed assessment period of costs negotiation, and it is worth noting that if no other specific agreement regarding assessment of costs is reached, then costs on standard basis is the default route for assessing costs.

It then falls to the Courts to go on to discuss and ensure that any costs claimed relating to the dispute at hand are proportionate and not unreasonably incurred when making the order for costs.

At Greener Costs, our team of Costs Draftsmen are highly experienced and knowledgeable on costs on a standard basis and can offer personalised advice and costing services, please get in touch with us today to find out more.

What are the alternatives?

The alternative to costs on a standard basis is costs on an indemnity basis, as stated in CPR 44.3. As opposed to standard basis costs, costs on an indemnity basis assesses the reasonableness of the costs incurred rather than the proportionality. If the Court assessing the reasonableness of the costs are unsure how to conclude then typically the court favours the receiving party in their decisions.

Fixed costs are another way of assessing costs, and typically fixed costs are applied to low-value personal injury claims. Fixed costs essentially set out the maximum amount of costs that are recoverable, as opposed to costs being discussed and calculated from detailed assessment hearings and hourly rate figures.

If you would like assistance with fixed costs, costs on a standard basis or the indemnity basis then our team of costs draftsmen can help. Please contact us today to find out more.

How are costs on an indemnity basis assessed?

The courts hold the power to award costs to either party following section 98 of The Civil Procedure Act 2005 and can use their discretion through assessment and investigation as to which parties get awarded costs and to what extent. The court will usually order indemnity costs when there is a provision in the contract specifying how costs should be assessed. This means that costs will be construed on a standard basis unless it is clear that the costs required are on an indemnity basis.

Fixed Costs

The rules surrounding fixed costs can be found in Part 45 of The Civil Procedure Rules and they were first introduced for low value personal injury claims and liability claims. The fixed costs rules were brought into place a cap on recoverable costs payable in these types of cases, and as such, the receiving party can probably expect to receive a much lower amount of costs than if the case were under a standard costs or indemnity costs basis.

It is worth noting that both the High Court and the Court of Appeal have previously stated and determined that late acceptance of a Part 36 offer is not a good enough reason to claim costs on an indemnity basis. Ultimately this means that a party would need to provide evidence of unreasonable conduct or beat their own offer at trial in order to switch from fixed costs to indemnity costs.

Part 36 Offers

A court can make an order for indemnity costs within a fixed costs case if the receiving party beats their own Part 36 offer, according to CPR 36.17. Costs are recoverable on an hourly basis following the date the Part 36 offer expired.

Receiving parties can sometimes forget or fail to consider previous Part 36 offers and simply forget to apply for indemnity basis of costs. This means they will receive less on their claimed costs as indemnity costs typically override fixed costs at a much higher rate.

How Greener Costs can assist

Our experienced Costs Draftsmen and Costs Lawyers at Greener Costs are highly capable to assist with costs on standard basis and our clients can be assured that we use all of the tools at our disposable to maximise the amount of costs recovered for your party.

With our extensive knowledge and highly skilled team of Costs Draftsmen, we can provide law costing services to clients throughout England and Wales and have worked on cases for the High Court, County Courts and Court of Appeal.

In addition to our drafting services at Greener Costs, we are actively doing everything we can to ensure our business benefits the environment. We are doing this though carbon offsetting of our staff, becoming completely paperless and carbon offsetting through each instruction.

If you wish to speak to a member of the team here at Greener Costs then please contact us at 01204 or use the online form on our website below. 


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