---
title: "Notice to client of a significant change in legal costs (Uniform Law s 174(1)(b))"
url: "https://ailawframework.com/precedents/costs-billing-and-litigation-funding/significant-change-costs-estimate-letter"
type: "precedent"
site: "AI Law Framework"
id: "a42-significant-change-costs-estimate-letter"
area_id: "A42"
kind: "letter"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# 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.

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

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

## 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 4 authorities it cites, for New South Wales, Victoria and Western Australia.

## 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.

## Authorities

- [Legal Profession Uniform Law s 174(1)(b), (2)(b), (3), (6), (7) and (8) (disclosure of significant change; impact information; consent; threshold changes)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a#sec.174)
- [Legal Profession Uniform Law ss 173 and 178 (avoiding increased costs; non-compliance with disclosure)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a#sec.173)
- [Legal Profession Uniform General Rules 2015 r 72A (rectifying a disclosure failure within 14 days)](https://legislation.nsw.gov.au/view/html/inforce/current/sl-2015-0246#rule.72A)
- [Legal Profession Uniform Law Australian Solicitors' Conduct Rules 2015 r 7.1 (clear and timely advice to allow informed choices)](https://legislation.nsw.gov.au/view/html/inforce/current/sl-2015-0244#rule.7)

## 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/significant-change-costs-estimate-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.*