Primary keywords: Part 36 late acceptance, CPR 36.17 uplift, indemnity costs, 10 percent additional damages, fixed recoverable costs Part 36, legal cost recovery, Bill of Costs drafting, costs on late acceptance
Secondary keywords: relevant period 21 days, Part 36 consequences, CPR 36.13, CPR 36.23, CPR 36.24, detailed assessment, interest on costs, interest on damages
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• When is acceptance “late”? When the offeree accepts a valid Part 36 after the 21-day relevant period. Costs then fall to be determined by the court unless agreed. (Justice.gov.uk)
• If the defendant accepts a claimant’s offer late (pre-judgment): the court will usually order the claimant’s costs up to expiry of the relevant period and the claimant’s costs from expiry to acceptance (basis not fixed as indemnity in the rule). (Justice.gov.uk)
• If the claimant goes to judgment and meets or beats their own offer: the court must (unless unjust) award (i) interest on damages (up to 10% above base), (ii) indemnity costs from expiry, (iii) interest on costs (up to 10% above base), and (iv) the additional amount (10% of the first £500k and 5% of the next £500k, capped at £75,000). (Justice.gov.uk)
• In Fixed Recoverable Costs (FRC) cases: acceptance and judgment consequences are modified under CPR 36.23–36.24 (you get the fixed tables, not standard/indemnity, and special “35% difference” rules at judgment). (Justice.gov.uk)
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A Part 36 offer can be accepted at any time unless withdrawn. If acceptance occurs after the 21-day relevant period, costs consequences move from the automatic position to what the court must order (unless the parties agree). (Justice.gov.uk)
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A. Late acceptance before judgment (defendant accepts claimant’s offer late)
Under CPR 36.13(4)–(5), the court must (unless unjust) order that:
• the claimant gets costs up to expiry of the relevant period; and
• the offeree (here, the defendant) pays the offeror’s (claimant’s) costs from expiry to acceptance.
The rule does not automatically switch the late period to indemnity basis—that indemnity uplift is a judgment consequence under 36.17. (Justice.gov.uk)
B. Where the case goes to judgment and the claimant equals/exceeds its own Part 36
If judgment is at least as advantageous as the claimant’s offer, the court must (unless unjust) award:
1. Interest on damages (up to 10% above base);
2. Costs on the indemnity basis from expiry of the relevant period;
3. Interest on costs (up to 10% above base); and
4. The additional amount (10% of the first £500k, 5% of the next £500k, capped at £75,000). (Justice.gov.uk)
C. Fixed Recoverable Costs (FRC) claims
For claims under Sections VI–VIII of Part 45, CPR 36.23–36.24 replace the usual consequences:
• Acceptance: you recover the fixed costs for the stage when the relevant period expired, plus applicable add-ons.
• Judgment: special rules apply, including additional costs equal to 35% of the difference between the fixed costs for the stage at expiry and at judgment (instead of indemnity costs), plus the additional amount per 36.17(4)(d). (Justice.gov.uk)
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Step 1 — Diary the 21-day deadline. Record the service date of the Part 36 and the relevant period end. On acceptance, mark “late” with email/consent order evidence. (Justice.gov.uk)
Step 2 — Split the chronology. In your Bill (or schedule), create a “Part 36 Consequences” section that clearly separates:
• Up to RP expiry (standard position), and
• RP expiry → acceptance (late period recoverable under 36.13(5) pre-judgment; or, if at judgment, the 36.17(4) enhancements). (Justice.gov.uk)
Step 3 — Itemise everything.
• Time & disbursements by period;
• Interest (only where 36.17 applies—i.e., judgment scenarios, including FRC modifications under 36.24);
• Additional amount (judgment only). (Justice.gov.uk)
Step 4 — In FRC matters, use the right tables. Quote the exact fixed table (PD 45) for the stage at RP expiry (acceptance) or at judgment (36.24) and, where applicable, calculate the 35% difference uplift. (Justice.gov.uk)
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Example A — Late acceptance pre-judgment (non-FRC)
• Claimant’s Part 36 served 1 June → RP expires 22 June.
• Defendant accepts 7 July (15 days late).
• The claimant claims: costs up to 22 June, and costs 22 Jun → 7 Jul (late period). Indemnity basis/interest uplifts do not apply because there’s no judgment. (Justice.gov.uk)
Example B — Judgment beats claimant’s Part 36 (non-FRC)
• Judgment at least as advantageous as the offer.
• Claimant gets: indemnity costs from RP expiry, interest on damages and on costs (up to +10% over base), and the additional amount (10%/5% capped at £75k). (Justice.gov.uk)
Example C — FRC claim (acceptance & judgment)
• Acceptance: recover fixed costs for the stage at RP expiry (36.23).
• Judgment (claimant beats own offer): apply the 36.24 modifications, including the 35% difference uplift (instead of indemnity costs) and the additional amount. (Justice.gov.uk)
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• Treating late acceptance as an “indemnity costs” case. That uplift is a judgment consequence, not a pre-judgment acceptance consequence. Cite 36.13 vs 36.17 in your Bill. (Justice.gov.uk)
• Missing the FRC switch-overs. In FRC, use 36.23–36.24 and the correct PD 45 tables; don’t plead standard/indemnity by default. (Justice.gov.uk)
• Agreeing a global figure. If you don’t itemise the late period, interest (where applicable), or the additional amount (judgment only), you’ll almost certainly leave money behind. (Justice.gov.uk)
• Withdrawing offers too soon. A withdrawn offer does not carry the 36.17 benefits. Keep withdrawal strategy tight. (Justice.gov.uk)
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Only where the case goes to judgment and the claimant meets or beats their own offer under 36.17(4)(d) (FRC: see the modified position under 36.24). (Justice.gov.uk)
No. Indemnity is tied to judgment consequences (36.17). Late acceptance pre-judgment is governed by 36.13. (Justice.gov.uk)
Your costs up to RP expiry and your costs from RP expiry to acceptance, subject to the court’s discretion under 36.13(5). (Justice.gov.uk)
Acceptance and judgment consequences are set by 36.23–36.24—you recover fixed figures (and, on judgment, the 35% difference uplift) rather than indemnity costs. (Justice.gov.uk)
Part 45 and Practice Direction 45 contain the FRC tables used by 36.23–36.24. (Justice.gov.uk)
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• Bill of Costs drafting that signposts CPR: We structure Bills with a dedicated “Part 36 Consequences” section, split by periods, and cross-referenced to 36.13 / 36.17 / 36.23–36.24. (Justice.gov.uk)
• FRC precision: We quote the correct PD 45 table, stage, and (where applicable) the 35% difference uplift at judgment. (Justice.gov.uk)
• Negotiation that lands the extras: We push for the full late-period recovery pre-judgment and all four 36.17 enhancements at judgment (or the FRC equivalents). (Justice.gov.uk)
• Every Penny reporting: You get a clear breakdown of core costs, late-period costs, interest, and additional amount—so nothing gets “lost in the global.”
Result: Faster, cleaner settlements and maximum recovery—without firefighting at detailed assessment.
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If you’ve had a Part 36 accepted after the 21-day period—or you’re heading to judgment—let’s make sure you recover every penny the Rules allow.
DMD Costs – Bills, budgets and negotiations that deliver.
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