Provisional assessment of costs: a practical guide

Under CPR 47.15, provisional assessment applies where the base costs claimed are £75,000 or less. The limit is measured by profit costs and disbursements, excluding VAT and the costs of the provisional assessment itself. The court can direct a conventional hearing in an appropriate case, and some proceedings are excluded.

Because many bills fall under the limit, provisional assessment is the most common route to an assessed figure. The paper process places more weight on the written documents than an oral hearing would, so the quality of the bill, points of dispute and replies matters even more.

If the parties cannot agree, the receiving party files a request for assessment with the required documents. These typically include the notice of commencement, the bill, the points of dispute and any replies, the relevant orders, fee notes and the offers made, together with a statement of the costs of the provisional assessment.

Missing documents cause delay. Before filing, check the bundle against Practice Direction 47 and the court’s current requirements, and make sure the version of the bill filed is the one the parties have exchanged.

The court assesses the bill on the papers, usually annotating the points of dispute with its decisions and returning them to the parties. The parties then calculate the assessed figure. The court will generally aim to deal with provisional assessment promptly, though timescales vary between courts.

Because there is no opportunity to explain at a hearing, every objection and reply should be self-contained. Concise reasons, references to documents and realistic positions are more persuasive than long generic submissions.

The costs of the provisional assessment are generally capped at £1,500, plus VAT and court fees, unless the court orders otherwise. That cap does not cover the costs of preparing the bill itself, which are treated separately as part of the costs of assessment.

Offers remain important. Part 36 offers and other admissible offers may affect who pays the costs of the assessment. Making a well-judged offer before provisional assessment can shift costs risk significantly.

A party dissatisfied with the provisional decision can request an oral hearing within 21 days, identifying the items it wishes to challenge. The requesting party usually pays the other side’s costs of that hearing unless it achieves an adjustment of 20% or more in its favour on the items challenged, or the court orders otherwise.

That threshold makes the decision to challenge a judgment call. Our Costs Lawyers advise on whether a challenge is worthwhile and represent clients at provisional assessment oral hearings, as part of our wider detailed assessment advocacy.

For receiving parties, a strong provisional assessment begins with the bill. Clear narratives, accurate phase coding and supporting evidence for disbursements reduce the number of items open to challenge. Where a budget was exceeded, the good-reason explanation should be visible in the papers.

For paying parties, points of dispute should be specific and proportionate. Identify the items challenged, explain why and offer an alternative figure. Judges deciding on paper respond well to objections that are easy to apply.

Replies deserve equal care. They should be short, address each point directly and refer to documents in the bundle. Our team prepares bills of costs, points of dispute and replies with Costs Lawyer input into every drafting instruction, so the documents are built for a paper decision from the start.

Provisional assessment does not end negotiation. Parties often settle once the request is filed, and the provisional decision itself provides a clear basis for agreeing the final figure, interest and the costs of assessment.

Before requesting an oral hearing, weigh the likely adjustment against the 20% threshold, the remaining costs and any offers on the table. Legal costs negotiation at that stage can be the most efficient way to finish the matter.