An interim payment on account of costs is money paid before costs are finally agreed or assessed. It improves cash flow, but it’s not the end of your recovery journey. The winning approach: bank the money, reserve your rights, then press on to detailed assessment until you’ve recovered every penny you’re entitled to.
At DMD Costs, we build this into your file strategy from day one: secure cash early, protect your position, and keep momentum until full recovery.
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An interim (on-account) payment is a reasonable sum the paying party provides after an order for costs (or similar entitlement), before final assessment. In England & Wales, courts commonly order payments on account (including at judgment or after Part 36 acceptance) and parties frequently agree them by consent. The purpose is simple: cash now, with rights preserved to claim the balance later.
Key point: An interim payment is not a full and final settlement unless you expressly agree it is. Always accept with protective wording.
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• At judgment or an order as to costs. Ask for a payment on account there and then.
• After Part 36 acceptance. You can still seek an on-account payment; don’t wait for the bill to finish.
• In Tomlin/consent orders. Build in a clear interim-payment clause (amount + time for payment).
• During negotiations post–Notice of Commencement. If delay creeps in, press for a further on-account sum.
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There’s no fixed percentage. A sensible starting point is a conservative, evidence-based figure using:
• Incurred WIP already evidenced on the file
• Paid/Payable disbursements (counsel/experts/medical/engineering, etc.)
• Case stage & risk (budget approvals, liability position, likely reductions)
For some budgeted or indemnity scenarios, higher proportions may be justified. For standard-basis matters, pitch what you can prove—and keep the door open for further payments on account if offers lag behind reality.
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“We accept £[X] as an interim payment on account of our inter partes costs, without prejudice to detailed assessment and to our entitlement to the balance (including any further payments on account) should agreement not be reached.”
Why it matters: This prevents accidental compromise, preserves your right to detailed assessment, and keeps leverage intact.
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“The Defendant shall pay the Claimant’s costs on the standard basis, such costs to be subject to detailed assessment if not agreed. Within 14 days the Defendant shall pay £[X] on account of those costs. For the avoidance of doubt, this payment is on account only and without prejudice to the Claimant’s entitlement to the balance following agreement or detailed assessment.”
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1. Secure the on-account payment (on the record, with protective wording).
2. Keep momentum: serve the Bill of Costs + Notice of Commencement (N252) promptly and comply with PD 47 to the letter.
3. Negotiate with intent: target weak points in likely disputes; don’t concede high-value phases or disbursements without an exchange.
4. Use pressure points: Points of Reply, timely applications, and a clear readiness for detailed assessment.
5. Seek a further on-account if timelines stretch or the bill supports it.
6. Enforce if needed: unpaid orders and certificates are enforceable—don’t let cash sit in limbo.
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• “Global” wording that compromises costs. We draft/approve wording so you don’t waive rights.
• Letting an interim pause the case. We move straight to bill/N252 to keep leverage high.
• PD 47 mistakes. We prepare compliant e-bills and evidence packs, first time right.
• Undershooting the figure. We back the number with data (WIP, disbursements, phase analysis) and justify it.
• No plan for further payments. We diarise review points to request additional on-account sums where justified.
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Because “interim” isn’t the finish line—and we’re built to chase every penny.
• Early cash, zero compromise: We secure on-account funds fast, with bulletproof wording.
• e-Bill excellence: Precise phase/time narratives, disbursement proofing, and PD 47 compliance.
• Relentless negotiation: We combine data-driven offers with tactical pressure (Replies, hearings) to maximise settlement.
• Scalable support: From single files to large cohorts (PI, Clinical Negligence, Housing Disrepair, Disease, Commercial).
• Nationwide, responsive: Serving firms across England & Wales (London, Manchester, Birmingham, Leeds and beyond).
• Outcome-first reporting: Clear MI on on-account sums recovered, recovery rates, and time-to-cash.
Result: You improve cash flow today and still recover the full balance—not just the easy bit.
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A claimant PI firm accepted £12,500 on account with our wording. We served the e-bill within 7 days, negotiated targeted reductions, secured a further £6,000 on account, and closed at £31,400 total within the negotiation window—without sacrificing high-value disbursements.
(Illustrative only; outcomes vary by case.)
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The on-account figure is provisional. If final assessed costs are lower, a balancing adjustment applies between the parties.
Yes—where justified by file data, case stage, or delay. We routinely build this into negotiation timetables.
Not if you use protective wording and keep costs “to be assessed if not agreed.” We handle this for you.
No. Ask early where justified; then move quickly to serve the bill and N252 to maintain pressure.
Interest and timing can be complex; securing funds early protects cash flow while we continue to pursue the balance.
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Don’t stop at an interim. Bank the cash and let us recover the balance.
• Email: info@dmdcosts.co.uk
• Free file review: Message us “Every Penny” and we’ll size the right on-account figure and recovery plan within one working day.
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Interim is cash-flow, not closure. With DMD Costs, you accept on account, keep leverage high, and recover every penny through to assessment and enforcement. If you’re seeing interim payments land, now is exactly when to bring us in.