Letter · Costs, billing & litigation funding
Notice to client of a significant change in legal costs (Uniform Law s 174(1)(b))
Letter that updates the client in writing when the scope, basis or likely total of legal costs changes significantly, explains the impact, sets out options and seeks instructions and consent.
- Kind
- Letter. A letter or email you adapt and send.
- Where it applies
- New South Wales, Victoria, Western Australia
- AI use
- Yellow AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at
- 17 October 2026
- Status
- Maintained. Checked on 17 October 2026 against the 4 authorities it cites, for New South Wales, Victoria and Western Australia.
- Version
- 1
- Source
- Written for this library
When to use it
Send as soon as practicable after a significant change to anything previously disclosed, including the estimate, rates, staffing, scope, a decision to brief counsel, or a client restriction on AI use. Use the alternative opening where costs will now exceed the $750 or $3,000 threshold.
How AI may be used
AI can compare the original disclosure with current recorded time and the lawyer's revised plan and draft the update, but the lawyer decides the revised estimate and options.
AI may
- Compare the last disclosure with time and disbursements recorded to date and summarise the variance by stage.
- Draft the letter from the lawyer's revised estimate and listed options.
- Flag where the matter is approaching or has crossed a disclosure threshold.
AI must not
- Must not set the revised estimate or recommend an option to the client.
- Must not minimise or omit the reasons for the increase.
- Must not send the letter.
The lawyer checks
- The impact information is enough for the client to make an informed decision about the future conduct of the matter (s 174(2)(b)).
- The letter goes before further significant costs are incurred.
- The client's instructions and consent are recorded on the file.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
More in Costs, billing & litigation funding
- Uniform Law standard costs disclosure form (matters likely to cost $750 to $3,000): completion guide
- Costs disclosure and costs agreement letter (Uniform Law ss 174 and 180)
- Engagement and costs agreement clauses: AI use, client consent and charging for AI-assisted work
- Billing and time-recording policy for AI-assisted work
- Litigation funding agreement review checklist (including class actions)
All precedents for Costs, billing & litigation funding · Tasks and AI use in this area