---
title: "Set out the costs consequences of a mandatory final offer"
url: "https://ailawframework.com/obligations/costs-billing-and-litigation-funding/set-out-the-costs-consequences-of-a-mandatory-final-offer"
type: "task"
site: "AI Law Framework"
id: "A42-CS20261023-7"
practice_area: "Costs, billing & litigation funding"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-25"
---

# Set out the costs consequences of a mandatory final offer

> From the offers and the award or proposed settlement the lawyer marks, set out which costs consequence the opened section produces, and draft the explanation for the client. Do not send it.

Canonical page: https://ailawframework.com/obligations/costs-billing-and-litigation-funding/set-out-the-costs-consequences-of-a-mandatory-final-offer  
Last reviewed: 2026-10-25

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Costs, billing & litigation funding](https://ailawframework.com/obligations/costs-billing-and-litigation-funding.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the offers and the award or proposed settlement the lawyer marks, set out which costs consequence the opened section produces, and draft the explanation for the client. Do not send it. |
| What the lawyer must review | The lawyer settles the letter the client receives, including which offer rule applies. In Queensland, apply section 56 only where the award is at or under the upper offer limit. Do not use the motor-accident dollar limits on a claim those limits do not cover. Keep medical details in the firm's system. Apply ASCR rule 9, APP 11, and the Privacy Act notifiable-breach test. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Offer costs consequence**

The tool sets out the consequence the opened section produces. The lawyer settles the letter the client receives.

- What the AI does: From the offers and the award or proposed settlement the lawyer marks, set out which costs consequence the opened section produces, and draft the explanation for the client. Do not send it.
- What the lawyer does: The lawyer settles the letter the client receives, including which offer rule applies. In Queensland, apply section 56 only where the award is at or under the upper offer limit. Do not use the motor-accident dollar limits on a claim those limits do not cover. Keep medical details in the firm's system. Apply ASCR rule 9, APP 11, and the Privacy Act notifiable-breach test.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Checked against the linked sources on 23 October 2026. Confirm the current instrument before reliance.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Section 56 is applied only to an award at or under the upper offer limit, and not to an appeal.
2. The motor-accident limits for 1 July 2026 to 30 June 2027 are not pasted onto a claim that is not a motor accident claim.
3. Costs for investigations after the compulsory conference are excluded unless the lawyer finds the unforeseeable-factors exception applies.
4. A Victorian or New South Wales file is not given a section 56 result.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [Personal Injuries Proceedings Act 2002 (Qld) s 56, costs and mandatory final offers](https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/qld/consol_act/pipa2002314/s56.html) (checked 2026-10-23)
- [Motor Accident Insurance Commission, legislation and indexation](https://maic.qld.gov.au/about-us/governance/legislation/) (checked 2026-10-23)
- [TAC Common Law Protocol 2026, chapter 19, legal costs and disbursements](https://www.tac.vic.gov.au/providers/resources/tac-protocols-tabs/common-law-protocol) (checked 2026-10-23)
- [SIRA, legal costs in claims for CTP statutory benefits](https://www.sira.nsw.gov.au/resources-library/motor-accident-resources/publications/for-professionals/legal-costs-in-claims-for-ctp-statutory-benefits) (checked 2026-10-23)
- [Motor Accident Injuries Act 2017 (NSW) s 8.10, costs of statutory benefits claims](https://www7.austlii.edu.au/cgi-bin/viewdoc/au/legis/nsw/consol_act/maia2017245/s8.10.html) (checked 2026-10-23)
- [WorkSafe Victoria, WorkCover (litigated claims) legal costs order 2024](https://www.worksafe.vic.gov.au/resources/workcover-litigated-claims-legal-costs-order-2024) (checked 2026-10-23)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Mandatory final offer under the Personal Injuries Proceedings Act 2002 (Qld)](https://ailawframework.com/precedents/personal-injury-and-compensation/qld-pipa-mandatory-final-offer.md) | Notice | Yellow | The claimant's mandatory final offer under sections 39 and 40 of the Personal Injuries Proceedings Act 2002 (Qld).… |
| [Mandatory final offer under the Motor Accident Insurance Act 1994 (Qld)](https://ailawframework.com/precedents/personal-injury-and-compensation/qld-motor-accident-mandatory-final-offer.md) | Notice | Yellow | The claimant's mandatory final offer under section 51C of the Motor Accident Insurance Act 1994 (Qld). It stays open for 14 days. |
| [Written final offer for a Queensland WorkCover damages claim (s 292)](https://ailawframework.com/precedents/personal-injury-and-compensation/qld-workcover-damages-written-final-offer.md) | Notice | Yellow | The claimant's written final offer under section 292 of the Workers' Compensation and Rehabilitation Act 2003 (Qld). It stays open for 10 business days. |

Signed-in accounts can read the full text of each one.

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [Queensland](https://ailawframework.com/obligations/costs-billing-and-litigation-funding/set-out-the-costs-consequences-of-a-mandatory-final-offer/queensland.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*