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United Kingdom
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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...

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Party wall works: cost-sharing rules, future contributions, and security for damage and expenses under the Party Wall etc. Act 1996

Practice notes
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This Practice Note explains the circumstances in which the cost of party wall works can be shared, the relevant entitlement of adjoining and building owners to seek security for damage and expenses, and the surrounding case law.

Sharing the cost of party wall works

Under the Party Wall etc Act 1996 (PWA 1996), the expense of works (described in PWA 1996 as ‘expenses’) is ordinarily borne by the building owner, save where an exception applies.

These exceptions include:

  • where a building owner constructs a new party wall or party fence wall, with the adjoining owner’s consent, the expense is apportioned between the two owners, having proper regard to the use made (or to be made) by each owner, and to the prevailing costs of labour and materials at the time of that use.

Accordingly, a building owner may receive no contribution when the new wall is first erected (because the adjoining owner derives no immediate use from it), yet may later demand payment if, for instance, the adjoining owner incorporates the wall into a structure on their own land at a future point in time, pursuant to the Act’s cost-sharing scheme.

The contribution of the adjoining owner would reflect...

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Web page updated on 21/05/2026

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