Outsourcing Costs Drafting: What Law Firms Gain (and What to Watch For)

For many law firms, cost drafting is one of those essential but time-intensive parts of litigation that can quickly stretch internal resources. As cases grow in complexity, scrutiny around costs recovery increases and more firms are turning to specialist support. At Knapp Richardson, we regularly work with legal teams who are weighing up whether to…

For many law firms, cost drafting is one of those essential but time-intensive parts of litigation that can quickly stretch internal resources. As cases grow in complexity, scrutiny around costs recovery increases and more firms are turning to specialist support.

At Knapp Richardson, we regularly work with legal teams who are weighing up whether to outsource costs drafting, either on a case-by-case basis or as part of a longer-term strategy. 

Below, we look at what law firms stand to gain from outsourcing to specialist costs draftsmen/cost lawyers, and what should be considered before making that move.

Why law firms choose to outsource costs drafting

The most immediate driver is usually pressure over resources. Preparing detailed Bills of Costs, schedules, and supporting documents takes time and often specialist knowledge and an expert eye. When fee earners are focused on progressing claims, the issue of costs recovery can become reactive rather than strategic.

By outsourcing to a firm of specialist costs draftsmen/costs lawyers, firms can free up internal teams while ensuring that costs work is handled by professionals who deal with these issues efficiently every day.

At Knapp Richardson, we act as an extension of our clients’ teams. We are instructed at various stages of the litigation, from early budgeting through to detailed assessment, allowing solicitors to stay focused on the substantive case while we manage the costs position alongside it.

Improved recovery and stronger outcomes

One of the most significant advantages of working with specialist costs draftsmen is the potential to improve recovery and/or reduce exposure

Costs drafting is not simply an administrative exercise. It requires skill and a detailed understanding of the Civil Procedure Rules, costs law, and current judicial trends. Small errors, omissions, or misjudgements can have a direct impact on what is ultimately recovered and/or paid

We approach every instruction with the potential recovery and/or exposure sharply focused. Whether we are preparing a formal Bill of Costs or advising upon settlement parameters, our focus is on presenting the strongest possible case. We support this with detailed analysis and clear justification, helping to place our clients in the best position during negotiations, mediation or should the matter proceed to a detailed or provisional assessment.

Access to specialist expertise

Costs law continues to evolve, particularly with developments in digital bills, costs budgeting, and funding arrangements. Keeping pace with these changes internally can be challenging, especially for firms that do not deal with high volumes of work where there is a potential for costs recovery. .

By outsourcing, law firms gain access to a team whose sole focus is on costs.

At Knapp Richardson, our team includes experienced Costs Lawyers and Costs Draftsmen. We provide advice across a wide range of areas, including:

• Preparation of Bills of Costs (inter partes and solicitor and own client)
• Case management, Costs budgeting and Precedent H – estimates and forecasts
• Advisory work on funding models, including conditional fee agreements and fixed fees
• Support in Solicitors Act proceedings
• Preparation of schedules for interlocutory applications, (N260), arbitration, mediation,  security for costs and final hearings – when seeking payments on account

This breadth of expertise allows us to support firms not just at the end of a matter, but throughout the entire proceedings. 

Strategic input at an earlier stage

A common misconception is that costs lawyers/draftsmen are only required once proceedings have concluded. In reality, earlier involvement can and does make a significant difference.

We are often instructed at the outset, or even prior to proceedings being issued, to advise on budgets, estimates, and funding structures. This early input helps law firms set realistic expectations, avoid common pitfalls, and build a costs strategy that aligns with the wider litigation approach.

For example, effective costs budgeting at the Case Management Conference stage can influence how a matter progresses and what is ultimately recoverable. Having specialist input at that stage can reduce the risk of later challenges or reductions.

Support during negotiations and hearings

Outsourcing does not stop at drafting documents. Specialist costs draftsmen can and do play an active role in negotiations and hearings.

At Knapp Richardson, we regularly assist with:

• Negotiations on costs settlements
• Interlocutory applications, including security for costs and interim payments
• Preparation of witness evidence
• Attendance at the CMC hearing, and at detailed assessment

Our team are experienced advocates in detailed assessment proceedings, which means we can support our clients through the entire process.

Enjoy more flexibility 

Another key benefit is flexibility. Litigation workloads can fluctuate significantly, and maintaining a fully resourced in-house costs function is not always practical.

Outsourcing allows firms to scale support up or down depending on demand. Whether it is a single high-value matter or a portfolio of cases, we can adapt to meet our clients’ needs without the overhead associated with permanent staffing.  At Knapp Richardson we also provide an ad-hoc advisory service to all client.

We work with firms across a range of jurisdictions, including the UK, Europe, the USA and offshore centres. This means we are well placed to support complex, cross-border matters where additional expertise is required.

What to watch for when outsourcing

While the benefits are clear, not all arrangements deliver the same value. Law firms should take care when selecting Costs Lawyers/draftsman.

Depth of expertise
Costs drafting is a specialist discipline. It is important to work with a team that has demonstrable experience across a range of matters, from case management on low value matters to include include high-value and complex litigation (arbitration)

Understanding of your practice area
Different types of litigation bring different challenges with costs. An experienced  costs lawyer/draftsman will understand the nuances of your work and tailor their approach accordingly.

Clarity and communication
Issues with legal costs can be technical, but advice should always be clear and practical. We place a strong emphasis on providing straightforward, strategic guidance that supports decision-making.

End-to-end support
Drafting is only one part of the process. Firms should consider whether their costs partner can also assist with advisory work, negotiations and advocacy where required.

A collaborative approach

Outsourcing costs drafting works best when it is a collaborative process rather than a transactional one.

At Knapp Richardson, we build long-term relationships with the firms we support. We take the time to understand how you operate, your priorities and the types of matters they handle. This allows us to provide advice that is not only technically sound but also commercially aware.

Our role is to support legal teams in achieving the best possible outcome on costs, whether that is through careful drafting, strategic advice, or representation at assessment.