Costs agreement drafting (NSW)
A compliant costs agreement protects the firm's billing position and the client's rights. This checklist walks through the drafting steps.
This is a 12-step checklist for drafting a compliant NSW costs agreement. It covers form, disclosure, scope, rates, billing and cooling off.
The checklist
Confirm the form is written
Costs agreements must be in writing or evidenced in writing and signed or accepted in writing.
Identify the client
Full legal name and any third party paying the bill must be identified.
Scope the matter
Clear scope of work — what is and is not included. Carve-outs for additional matters.
State hourly rates
State the hourly rates for each fee earner and any rate reviews.
Provide the estimate
A total estimate of legal costs and, if not possible, a range with assumptions.
Disclose disbursements
Expected disbursements, barrister and expert fees and any mark-up.
Include billing terms
Frequency of billing (usually monthly), due date, interest on overdue bills.
Include conditional costs terms if applicable
Uplift provisions must comply with the Uniform Law cap. No uplift in family law.
Explain the right to assessment
Include a notice of the right to a costs assessment and the 12-month time limit.
Explain the right to cool off
Conditional costs agreements have a 5 business day cooling off period.
Include termination terms
How either party may end the retainer, and costs on termination.
Obtain signed acceptance
Obtain written acceptance — not just a click or a silent continuation of instructions.
When this checklist applies
Use this checklist when drafting or updating a costs agreement template. Update whenever the Uniform Law or Rules change.
Common pitfalls
- Estimates that are too narrow
- Missing cooling off on conditional costs agreements
- Silent acceptance by conduct only
- Uplift where not permitted
- Scope that is vague or circular
Run this checklist on a real matter
Quillio drafts compliant costs agreements and disclosure notices in current NSW format. See /practice-areas/commercial-lawyers.
This checklist is a general guide. Seek firm-specific advice for conditional fee and litigation funding agreements.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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