Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Costs definition

What does Costs mean? In litigation, costs are the legal fees, disbursements, court fees and VAT incurred in bringing, defending or appealing a claim, and the sums a court or tribunal may order one party to pay another for those liabilities. The concept is governed by procedural rules and case law rather than a single statutory definition: England and Wales (CPR 44–47), Northern Ireland (RCJ Ord 62), Scotland (where the equivalent term is expenses), and Ireland (Legal Services Regulation Act 2015 and the Legal Costs Adjudicators). The general approach is broadly consistent, subject to local terminology and procedure. Typical features include the discretionary rule...

Party costs in construction adjudication: contractual allocation, adjudicator’s jurisdiction, Late Payment of Commercial Debts Act, damages recovery, and Tolent clauses (including pre‑2011 contracts)

Published by a LexisNexis Construction expert

Practice notes

Produced in association with 4 Pump Court

This Practice Note examines whether an Adjudicator may order one party to bear, in full or part, the other party’s legal Costs—termed ‘party costs’. It also considers a party’s scope to recover party costs under the Late Payment of Commercial Debts (Interest) Act 1998 (LPCD(I)A 1998) or by claiming Damages. For an adjudicator’s Fees and expenses, see Practice Note: An adjudicator’s fees and expenses.

As a general rule, the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), as amended by the Local Democracy, Economic Development and Construction Act 2009 (LDEDCA 2009), aims to prevent parties from agreeing terms that place the whole costs risk on one side. Section 108A of the HGCRA 1996 renders ineffective any agreement on liability for party costs, subject to a narrow exception: parties may agree how such costs are allocated only where the agreement is both:

in writing, and
made after the notice of intention to refer a dispute (the Notice of Adjudication) has been given

For the position under the HGCRA 1996...

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Web page updated on 21/05/2026

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