Points of Dispute are the paying party’s written challenges to a bill of costs, served within 21 days after service of the notice of commencement (CPR 47.9(2)). They must be short and to the point, follow Precedent G so far as practicable, deal with points of principle before specific items, and come with an open letter stating what sum, if any, the paying party offers (PD 47 paras 8.2 and 8.3). The receiving party may answer them with a Reply within 21 days (CPR 47.13), limited to points of principle and concessions (PD 47 para 12.1).
This guide, from DMD Costs, law costs draftsmen in Westhoughton, Bolton (Greater Manchester), sets out the rules for both documents, the usual challenges, and what happens next. It is written from the receiving party’s side: we mainly act for claimant solicitor firms. The free detailed assessment deadline calculator works out the 21 days, and the dates that follow.
Jump to: timing · what they must contain · late or missing points · common points · Replies · vague points · what happens next
Who serves them, and when
The paying party, and any other party to the detailed assessment proceedings, may dispute any item in the bill by serving Points of Dispute on the receiving party and every other party (CPR 47.9(1)). The period is 21 days after service of the notice of commencement (CPR 47.9(2)), counted from its deemed date of service (CPR 6.26). Where the notice is served outside England and Wales, the date for Points of Dispute is calculated as if the notice were a claim form and the date were the date for filing a defence, and is never less than 21 days from service (PD 47 para 5.4).
The time can be extended by written agreement (CPR 2.11) or by the court (PD 47 para 8.1). Because CPR 47.9(3) sets a consequence for serving late, CPR 3.8(3) and (4) may limit an agreed extension to 28 days unless the court orders otherwise, so a longer extension is safest recorded in a consent order.
What they must contain
PD 47 para 8.2 says Points of Dispute must be short and to the point, must follow Precedent G so far as practicable, and must:
- identify any general points or matters of principle which require decision before the individual items in the bill are addressed; and
- identify specific points, stating concisely the nature and grounds of dispute.
Once a point has been made it should not be repeated: the item numbers where it arises go in the left-hand box, as Precedent G shows (para 8.2). The paying party must also state in an open letter accompanying the Points of Dispute what sum, if any, it offers to pay in settlement of the total costs claimed, and it may make a Part 36 offer as well (para 8.3). The leading case on how precise they must be is Ainsworth v Stewarts Law LLP [2020] EWCA Civ 178, which considered the form para 8.2 requires and the court’s wide discretion to strike out a point under CPR 3.4(2) (as summarised in Ward v Rai [2026] EWCA Civ 816 at [19] and [20]). Precedent G is the model for Replies too, and in a provisional assessment the court notes its decisions on the completed Precedent G (PD 47 para 14.4(2)).
Late or missing Points of Dispute
A party that serves Points of Dispute late may not be heard further in the detailed assessment proceedings unless the court gives permission (CPR 47.9(3)). If none have been served when the 21 days expire, the receiving party may request a default costs certificate on Form N254 (CPR 47.9(4) and 47.11), but Points of Dispute served late, and before the certificate is issued, stop the court issuing it (CPR 47.9(5)). The 21 days run only from valid service: email counts only where the paying party has agreed in writing to accept it (PD 6A para 4.1), and a certificate obtained after defective service must be set aside (CPR 47.12(1)). A paying party that misses the deadline altogether can apply to set the certificate aside, and the court may do so for some good reason why the assessment should continue (CPR 47.12(2)). Our guide to detailed assessment, step by step covers the certificate, and the free N254 builder prepares the request.
Common points of dispute
The challenges that recur in claimant bills include:
- Proportionality and reasonableness. On the standard basis the court allows only costs that are proportionate to the matters in issue and resolves any doubt about whether costs were reasonably and proportionately incurred, or reasonable and proportionate in amount, in favour of the paying party (CPR 44.3(2)).
- Hourly rates and grades. The rates claimed, and whether the work was done at the right level of fee earner: our guide to the guideline hourly rates for 2026 covers how they are argued.
- The budget. Where a costs management order was made, the court assessing on the standard basis has regard to the last approved or agreed budgeted costs for each phase, will not depart from them unless satisfied that there is good reason to do so, and takes into account any comments it recorded on incurred costs (CPR 3.18). Budgeted costs are the estimated costs; incurred costs are assessed in the ordinary way, which is where many challenges are aimed.
- Time on documents and routine communications. Routine letters, emails and calls are in general allowed on a unit basis of 6 minutes each (PD 47 para 5.22(1)), and large blocks of document time are a frequent target.
- Disbursements. Counsel’s and experts’ fees, which are served with the bill as fee notes, with written evidence of any other disbursement over £500 (PD 47 para 5.2).
- The retainer. Whether the client is liable for the costs claimed, which the bill’s accuracy certificate addresses: the indemnity principle. If liability is disputed, the request for an assessment must include the retainer documents explaining how the charges are calculated (PD 47 para 13.2(i)), and the court may ask the receiving party to elect whether to disclose a document or rely on other evidence (para 13.13). An unenforceable retainer can take the recoverable costs to nil (HD v North Devon).
How these play out depends on the area of work. Our posts on the common reductions in housing disrepair Points of Dispute and on Points of Dispute in clinical negligence detailed assessment go into the detail.
Replies
A Reply is optional. Where Points of Dispute are served, the receiving party may serve a Reply on the other parties within 21 days after being served with them (CPR 47.13). It must be limited to points of principle and concessions only, and must not contain general denials, specific denials or standard form responses (PD 47 para 12.1). Whenever practicable it must be set out in the form of Precedent G (para 12.2).
A Reply matters most in a provisional assessment. There no party attends, and with the request for assessment the receiving party files the completed Precedent G, the Points of Dispute and any Reply, which the court decides on paper (PD 47 paras 14.3(e) and 14.4). So use the Reply, within the limits of para 12.1, for the points of principle and the concessions that matter. Concessions count as well as argument: in deciding who pays the costs of the assessment, the court considers whether it was reasonable for a party to claim or to dispute a particular item (CPR 47.20(3)(c)).
Vague points: Ward v Rai
In Ward v Rai [2026] EWCA Civ 816 the Court of Appeal allowed the paying party’s appeal and restored the decision of a Deputy Costs Judge. He had declined to strike out a point of dispute on work on documents that was framed in general terms and relied on an annotated schedule, and had allowed the paying party to rely on that schedule although it was served shortly before the hearing, adjourning with costs sanctions to follow. Striking the point out would clearly have been open to him, but he was not obliged to do so, and his decision was within the generous ambit of his discretion ([58] and [60]).
The court added that paying parties “should be under no illusion that paragraph 8.2 of PD 47 requires an Ainsworth compliant approach”: those who do not comply in time risk non-compliant points being struck out or, as a minimum, costs sanctions, and late variations by either party under PD 47 para 13.10 risk being disallowed or allowed only on conditions, including as to costs ([61]). For a receiving party, the practical lessons are to answer a vague point on its merits as well as on its form, to chase any promised schedule promptly, and to raise any gap with the judge at the time. Our case note on Ward v Rai sets out the decision.
What happens next
Many bills settle between Points of Dispute and the assessment. An offer to settle the bill, under Part 36 or otherwise, should say whether it includes the cost of preparing the bill and VAT, and an offer that is not a Part 36 offer should say whether it includes interest; unless it says otherwise, it is treated as including them (PD 47 para 19). Part 36 applies to the costs of the assessment with modifications (CPR 47.20(4)), both ways: a receiving party that fails to beat a paying party’s Part 36 offer on the bill will usually pay the paying party’s costs of the assessment from the end of the relevant period (CPR 36.17(3)).
If the costs are not agreed, the receiving party files a request for an assessment on Form N258 within 3 months after the last day for starting detailed assessment proceedings under CPR 47.7, or a court direction (CPR 47.14(1)), with the Points of Dispute annotated to show which items are agreed and which remain in dispute, with their values, and any Replies (PD 47 para 13.2). Only items in the Points of Dispute may be raised at the hearing without the court’s permission (CPR 47.14(6)). A party can vary its Points of Dispute or Reply by filing and serving an amended or supplementary document; permission is not needed, but the court may disallow the variation or allow it only on conditions, including as to costs (PD 47 para 13.10). The free N258 builder prepares the request.
How DMD Costs can help
DMD Costs works mainly for claimant solicitor firms in housing disrepair, clinical negligence and MoD NIHL claims. We draft the Replies, answer rate, proportionality and disbursement challenges with the file evidence, and negotiate the bill to settlement or prepare it for assessment. We prepare the costs documentation and support your team through the process. The instructing solicitor retains conduct of the matter. The fee is fixed and agreed before any work begins.
Sources
- CPR Part 47 (rules 47.9, 47.11 to 47.14 and 47.20) and Practice Direction 47 (paras 5.2, 5.4, 5.22, 8.1 to 8.3, 12.1, 12.2, 13.2, 13.10, 13.13, 14.3, 14.4 and 19; Precedent G)
- CPR Part 44 (rule 44.3), CPR Part 3 (rules 3.4(2), 3.8 and 3.18), CPR Part 36 (rule 36.17), CPR Part 2 (rule 2.11), CPR Part 6 (rule 6.26) and Practice Direction 6A (para 4.1)
- Ward v Rai [2026] EWCA Civ 816 and Ainsworth v Stewarts Law LLP [2020] EWCA Civ 178