Articles
The Hidden Cost of Leaving Costs Too Late
Wednesday 27th May 2026
Sonny Welsh
In litigation, costs are often treated as something to be dealt with at the end of the case.
The claim settles, the order is made, the file is closed, from the fee earner’s perspective, and only then does the question arise “What are we actually recovering?”
By that stage, the answer may already have been affected. Costs recovery does not begin when the bill is drafted. It begins much earlier. It starts with how the file is run, how time is recorded, how disbursements are evidenced, how offers are documented, how phases are monitored, and how the overall conduct of the case can later be explained.
Leaving costs too late can create problems that are difficult to fix after the event. Time entries may be too vague. Attendance notes may not explain why work was necessary. Counsel’s fees, medical agency fees, expert fees, or other disbursements may not be supported by clear evidence. Work may not have been allocated properly between phases. Important assumptions from a costs budget may have been overtaken by events, but never revisited.
None of these issues may seem particularly urgent while the litigation is ongoing. The focus is understandably on progressing the claim, meeting deadlines, dealing with evidence, negotiating settlement, and protecting the client’s position.
But when the matter reaches costs, those small gaps can become real points of attack. A paying party does not need much encouragement to challenge vague work, apparent duplication, unexplained disbursements, or costs that seem disconnected from the issues in dispute. The more uncertainty there is, the easier it becomes to argue for reductions.
The hidden cost is not just the reduction itself. It is the time spent trying to repair the position afterwards.
Fee earners may need to revisit old files, clarify old attendance notes, find missing documents, explain historic decisions, or reconstruct why certain steps were taken. That creates further pressure, further delay, and often further frustration. It can also weaken negotiation.
A well prepared costs claim is easier to defend. It gives the receiving party confidence. It allows the costs draftsman to present the work properly, anticipate likely objections, and respond with substance. A poorly prepared file, by contrast, can turn even a strong claim into a more difficult recovery exercise.
This is particularly important where there has been a costs budget. An approved budget can assist, but it does not remove the need for clear evidence and sensible file management. If the work claimed cannot be properly explained, or if the case has moved outside the assumptions without that being addressed, the budget may not provide the protection hoped for.
The same applies to detailed assessment generally. The bill is not just a list of figures. It is the story of the litigation told through costs. If the file does not support that story, recovery becomes harder.
That is why solicitors benefit from thinking about costs before the end of the case. Not obsessively, and not at the expense of the client’s substantive claim, but as part of sensible litigation management.
Good time recording matters. Clear attendance notes matter. Evidence of disbursements matters. Budget monitoring matters. Early advice matters.
At Smart Legal Costs Solutions, we assist solicitors with costs budgets, bill drafting, points of dispute, replies, and detailed assessment strategy. We know that the best costs recovery often comes from preparation long before the bill is served.
Leaving costs too late can be expensive. Dealing with them properly from the outset is far smarter.
Smart Legal Costs Solutions
Legal Costs – A Smarter Way