Bill of Costs: Our Drafting Service

 

What is a Bill of Costs?

Upon successful conclusion of your case, costs may be assessed at a summary assessment. Alternatively, a costs order may be granted and parties will be required to negotiate costs.

if an order is given for a detailed assessment of your legal costs, a Bill of Costs must be prepared.

A Bill of Costs is a detailed list of any legal expenses incurred such as Solicitor’s fees (hourly rates) for their time spent working on the case, Court fees and expert fees.

This list is used to provide the paying party with relevant information about the costs associated with a case.

If your case is a multi-track matter, an electronic Bill of Costs will be required; special rules apply for electronic bills.

Preparing a Bill of Costs

Preparing a bill of costs under the Civil Procedure Rules (CPR) in England and Wales involves a detailed process. Outlined below is a step-by-step guide to you (the receiving party) understand and prepare a bill of costs effectively:

1. Understand the rules

  • CPR Part 47: This part of the Civil Procedure Rules deals with the procedure for detailed assessment of costs.
  • Practice Direction (PD) 47: It provides additional guidance on the preparation and presentation of a bill of costs.

2. Structure of the Bill

The bill should be divided into parts as required by PD 47, which typically include:

  • Title Page: Includes details such as the parties involved, the case number, the court, and the type of costs being assessed.
  • Certificate: A statement certifying that the bill complies with the rules and directions of the court.
  • Summary: A summary showing the total amount of costs claimed.
  • Narrative: A brief explanation of the nature of the work done and the circumstances of the case.
  • Breakdown: Detailed entries showing the work done, the time spent, and the costs incurred.

3. Prepare the Detailed Entries

Each item of work must be itemized with the following information:

  • Date: When the work was done.
  • Description of Work: Detailed description of the work undertaken.
  • Time Spent: How long it took to complete the work.
  • Rate Charged: The hourly rate charged.
  • Total Cost: The total cost for each entry.

4. Include Disbursements

List all disbursements (out-of-pocket expenses) incurred during the case, such as court fees, expert fees, and travel expenses. Each disbursement should be supported by invoices or receipts.

5. Organise the Bill into Parts

The bill should be divided into parts, which usually include:

  • Part 1: Solicitors’ / fee earner charges.
  • Part 2: Counsel’s fees.
  • Part 3: Other disbursements.
  • Part 4: Value Added Tax (VAT), if applicable.

6. Prepare the Summary of Costs

At the end of the bill, provide a summary that totals the costs under each part and then provides an overall total.

7. Check Compliance

Ensure that the bill complies with the requirements of PD 47, including:

  • Being clearly and legibly typed.
  • Each item being numbered consecutively.
  • Entries being in chronological order.
  • Since April 2018, all bills of costs for multi track cases must be in electronic format.
  • if a Costs Management Order has been made, this will need to be reflected in the Electronic Bill of Costs

8. Certify the Bill

The bill must be certified by the solicitor responsible for preparing it. The certificate should state that the bill is a true and accurate record of the work done and the costs incurred.

9. Serve the Bill

The receiving party must serve the bill of costs on the paying party, along with a notice of commencement of detailed assessment proceedings (N252 form).

10. Attend the Detailed Assessment Hearing

Be prepared to attend the detailed assessment hearing if required, where the costs will be scrutinized by a Costs Judge or a Costs Officer.

How can Greener Costs assist?

 

Greener Costs are a team of expert law costs draftsmen with many years of experience in the field. We can assist by drafting your Precedent H and by engaging in negotiations with the other party to reach an agreement as to costs. We can assist from the outset of a case by assisting in the drafting of retainers, right through to the settlement of a case by drafting bills of costs, points of dispute and points of reply.

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 through carbon offsetting of our staff, becoming completely paperless and carbon offsetting through each instruction.

For a free, no obligation discussion, get in touch using the form at the bottom of the page or contact info@greenercosts.co.uk.

We offer legal services to individuals and law firms who are located in England and Wales and have a registered office in Bolton. We will always keep your personal data private.

 

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Contacting us is free. It's our goal to put you at ease and offer expert advice on Bill of Costs, Costs Budgets and Costs Drafting

4 Bark Street East, Bolton, BL1 2BQ

01204 263047

info@greenercosts.co.uk

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