In an era where costs negotiation is as much about psychology, preparation and commercial awareness as it is about rules and precedent, Amy and Mike, two experienced costs negotiators at Your Legal Costs, explore what defines a great costs negotiator – and what law firms should expect as the landscape evolves into 2026.
How did you get into costs negotiation – and why this role?
Mike:
Like many legal costs negotiators, it wasn’t something I set out to do from day one. I’d spent several years working in a large commercial law firm and was looking for something still technical, but with more problem-solving and variety.
A friend working in legal costs suggested I apply for a role, and I thought, why not give it six months? Once I’d trained in costs drafting, it quickly became clear that negotiation was the part of the role I enjoyed most – preparing replies, dealing with difficult points of dispute, and working out how best to resolve matters.
Costs negotiation is unpredictable and often contentious, but that’s what makes it engaging. Resolving complex disputes on strong, realistic terms for the client is hugely satisfying.
How has the role of a costs negotiator changed since Jackson and Mazur?
Amy:
The role has changed significantly. Following the Jackson reforms – and more recently developments such as the Court of Appeal’s decision in Mazur, announced in September 2025 – costs negotiation has become far more front-loaded and strategic.
Negotiators are no longer dealing solely with arguments at the end of a case. We’re increasingly expected to anticipate how proportionality, reasonableness and recoverability will be approached long before a matter reaches detailed assessment.
For law firms, costs is no longer an afterthought. Clients now expect early guidance, risk awareness and strategic input. That advisory element of the legal costs negotiator role will only continue to grow into 2026.
What key skills define a great costs negotiator in 2025?
Mike:
Empathy and communication are absolutely critical. The strongest costs negotiators combine technical accuracy with the ability to understand what really matters to the other side – whether that’s speed, certainty, or how the outcome will be reported back to their client.
At YLC, negotiators are trained to adjust tone and approach depending on the situation: firm and persuasive, but never combative for the sake of it. Effective costs negotiation is relationship-based, not just transactional.
Amy:
Preparation is another defining skill. The best negotiations are often won before the conversation even begins. Fully understanding the strengths and weaknesses of both positions enables you to negotiate with confidence rather than reacting under pressure.
Why preparation is critical in modern costs negotiations
Amy:
Preparation underpins everything. Before negotiations begin, there’s a detailed review of the bill of costs, points of dispute, replies and the underlying case history. Likely risk areas are identified early, along with points that are commercially worth defending and those where compromise may make sense.
A case-specific negotiation strategy is then built. That approach ensures negotiations are proactive, evidence-led and aligned with realistic outcomes – rather than simply responding piecemeal as correspondence develops.
How empathy and opponent insight influence negotiation outcomes
Amy:
Understanding the opponent’s perspective plays a huge role in legal costs negotiation. Having acted for both receiving parties and paying parties gives valuable insight into how arguments are framed and prioritised.
That perspective often helps unlock negotiations more efficiently and avoid entrenched positions. Knowing why the other side is pushing a point can be just as important as knowing whether they’re technically right.
Why commercial awareness matters more than ever for law firms
Amy:
In 2025, law firms want negotiators who understand outcomes, not just technical wins. A sound argument that takes months to resolve or leads to disproportionate time costs isn’t always the right commercial choice.
At YLC, costs negotiation strategy is aligned with the client’s wider litigation objectives – including value for time and money. Sometimes certainty and speed are the best outcome, even if that means sensible compromise. Knowing where to draw that line is a key skill.
How technology is changing costs negotiation
Mike:
Technology has transformed the way costs negotiations are prepared. Digital bills, cost management systems, analytics and structured formats like the Precedent S Bill make it easier to review figures, identify trends and assess risk early.
That said, negotiation remains human-led. Knowing when to move away from spreadsheets and pick up the phone is still essential, particularly when disputes become finely balanced.
Amy:
Email negotiations are useful, but some discussions are still best handled verbally. Tone, rapport and nuance can have a significant impact on negotiation outcomes.
How training, experience and mentoring build strong negotiators
Amy:
Many of YLC’s strongest negotiators have progressed through cost drafting roles, which gives them an instinctive understanding of value, proportionality and risk.
There’s also a strong mentoring and collaboration culture. Negotiations are reviewed, outcomes discussed, and lessons shared across the team. Continuous learning is built into how we work.
Advice for aspiring costs negotiators
Amy:
Build a strong technical foundation, stay curious, and don’t shy away from difficult negotiations. Those are often where the most valuable experience comes from.
Mike:
And remember that a successful costs negotiation isn’t just about the final figure. It’s about achieving a fair, proportionate outcome that works for the client and avoids unnecessary dispute.
What makes Your Legal Costs’ negotiation approach different?
Amy:
Negotiation at YLC isn’t undertaken in isolation. Negotiators work closely with drafting teams, advocates and recovery specialists who all understand the file and the wider costs strategy.
Mike:
That joined-up approach means negotiations are more focused, proportionate and effective – giving law firms confidence that their legal costs are being handled strategically from start to finish.
Looking ahead: costs negotiation into 2026
As the legal costs landscape continues to evolve, great costs negotiators will need far more than technical expertise alone. Empathy, preparation, commercial awareness and adaptability are now essential skills.
For law firms, understanding what to expect from a modern costs negotiator is key. At Your Legal Costs, negotiation is a specialist discipline – built on experience, collaboration and forward-thinking strategy – ensuring clients’ costs are always in safe hands.