---
title: "Costs disclosure and costs agreement letter (Uniform Law ss 174 and 180)"
url: "https://ailawframework.com/precedents/costs-billing-and-litigation-funding/costs-disclosure-and-agreement-letter"
type: "precedent"
site: "AI Law Framework"
id: "a42-costs-disclosure-and-agreement-letter"
area_id: "A42"
kind: "letter"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# Costs disclosure and costs agreement letter (Uniform Law ss 174 and 180)

> Full written costs disclosure for Uniform Law matters likely to exceed $3,000, which also operates as the costs agreement when accepted.…

Canonical page: https://ailawframework.com/precedents/costs-billing-and-litigation-funding/costs-disclosure-and-agreement-letter  
Law stated as at: 2026-10-17

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

Full written costs disclosure for Uniform Law matters likely to exceed $3,000, which also operates as the costs agreement when accepted. Covers scope, basis of charging, estimate, billing, AI use and the client's statutory rights.

## Key facts

- Kind: Letter. A letter or email you adapt and send.
- Practice area: [Costs, billing & litigation funding](https://ailawframework.com/precedents/costs-billing-and-litigation-funding.md)
- Jurisdictions: New South Wales, Victoria, Western Australia
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 8 authorities it cites, for New South Wales, Victoria and Western Australia.

## When to use it

Use at the start of any non-commercial Uniform Law matter (NSW, Victoria, WA) where professional fees are likely to exceed $3,000, or when a matter outgrows the standard form. Not for conditional (no win, no fee) arrangements, which need a separate agreement that meets s 181.

## How AI may be used

AI can produce a first draft from the scope, the estimate the lawyer has named and this precedent, listing every figure still needing an instruction. The lawyer fixes the estimate, rates and scope and checks the statutory content before it is sent.

**AI may:**

- Populate the letter from the file note and the lawyer's approved estimate, leaving unresolved figures in brackets.
- Build the stage-by-stage estimate table from the lawyer's inputs and check the arithmetic and GST.
- Check the draft against the s 174(2)(a) client-rights list and flag anything missing.

**AI must not:**

- Must not invent rates, estimates, assumptions or the name of the regulator.
- Must not convert the letter into a conditional or uplift arrangement, or add any term calculating fees by reference to an award or settlement (s 183).
- Must not send or e-sign the letter on the practice's behalf.

**The lawyer checks:**

- The estimate is the lawyer's own, with the main variables stated, and reflects any efficiency from AI-assisted work.
- The client-rights section, the regulator details and the time limits are current for the state.
- The file records the steps taken to ensure the client understood and consented (s 174(3)).

## Authorities

- [Legal Profession Uniform Law s 174 (main disclosure requirement, client rights, consent and understanding)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a#sec.174)
- [Legal Profession Uniform Law ss 172 and 173 (fair and reasonable costs; avoiding increased costs)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a#sec.172)
- [Legal Profession Uniform Law ss 175, 176 and 177 (other law practices, third party payers, settlement estimates)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a#sec.175)
- [Legal Profession Uniform Law ss 180, 181 and 183 (making costs agreements; conditional costs agreements; contingency fees prohibited)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a#sec.180)
- [Legal Profession Uniform Law ss 186 to 195 (bills, itemised bills, progress reports, interest)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a#sec.186)
- [Legal Profession Uniform Law ss 198 and 272 (time limits for costs assessment and costs complaints)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a#sec.198)
- [Legal Profession Uniform General Rules 2015 rr 74 and 75 (itemised bill higher than lump sum; maximum interest rate)](https://legislation.nsw.gov.au/view/html/inforce/current/sl-2015-0246#rule.74)
- [Legal Profession Uniform Law Australian Solicitors' Conduct Rules 2015 r 13 (completion or termination of engagement)](https://legislation.nsw.gov.au/view/html/inforce/current/sl-2015-0244#rule.13)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/costs-billing-and-litigation-funding/costs-disclosure-and-agreement-letter and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

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