PART 5HEARINGS AND SUBSTANTIVE DECISIONS
Costs42
1
In this rule—
a
“all the circumstances” are all the circumstances of the proceedings and include—
i
the conduct of the parties during (but not prior to) the proceedings;
ii
whether a party has succeeded on part of his case, even if he has not been wholly successful; and
iii
any representations made to the adjudicator by the parties; and
b
the conduct of the parties during the proceedings includes—
i
whether it was reasonable for a party to raise, pursue or contest a particular allegation or issue;
ii
the manner in which a party has pursued or defended his case or a particular allegation or issue; and
iii
whether a party who has succeeded in his case in whole or in part exaggerated his case.
2
The adjudicator may, on the application of a party or of his own motion, make an order as to costs.
3
In deciding what order as to costs (if any) to make, the adjudicator must have regard to all the circumstances.
4
An order as to costs may—
a
require a party to pay the whole or such part of the costs of another party and—
i
specify a fixed sum or proportion to be paid; or
ii
specify that the costs are to be assessed by the adjudicator if not agreed; and
b
specify the time within which the costs are to be paid.
5
An order as to costs must be recorded in a costs order.
6
A costs order must—
a
be in writing;
b
be dated;
c
be signed by the adjudicator;
d
state the order as to costs; and
e
be served by the adjudicator on the parties.
7
Where the costs are to be assessed by the adjudicator, he may assess the costs—
a
on the standard basis; or
b
on the indemnity basis,
but in either case the adjudicator will not allow costs that have been unreasonably incurred or are unreasonable in amount.
8
The adjudicator must inform the parties of the basis on which he will be assessing the costs.
9
Where the amount of the costs are to be assessed on the standard basis, the adjudicator must—
a
only allow costs which are proportionate to the matters in issue; and
b
resolve any doubt that he may have as to whether costs were reasonably incurred or reasonable and proportionate in favour of the paying party.
10
In deciding whether costs assessed on the standard basis were either proportionately and reasonably incurred or proportionate and reasonable in amount, the adjudicator must have regard to all the circumstances.
11
Where the amount of the costs are to be assessed on the indemnity basis, the adjudicator must resolve any doubt that he may have as to whether costs were reasonably incurred or were reasonable in amount in favour of the paying party.
12
In deciding whether costs assessed on the indemnity basis were either reasonably incurred or reasonable in amount, the adjudicator must have regard to all the circumstances.
13
Once the adjudicator has assessed the costs, he must serve on the parties written notice—
a
of the amount which must be paid;
b
by whom and to whom the amount must be paid; and
c
if appropriate, the time by when the amount must be paid.