A report on the allocation of costs by arbitrators and how to encourage efficient and costs-effective procedural conduct. The considerations contained in this Report are intended to inform users of arbitration how tribunals may allocate costs in accordance with the parties’ agreement and/or any applicable rules or law. (Also available in Spanish)


The ICC Commission on Arbitration and ADR (the ‘Commission’) seeks to continue providing users of international arbitration with the means to ensure that proceedings are conducted in an effective and cost-efficient manner.


Party costs (including lawyers’ fees and expenses, expenses related to witness and expert evidence, and other costs incurred by the parties for the arbitration) make up the bulk (83% on average) of the overall costs of the proceedings. Arbitrators’ fees and case administration account for a much smaller proportion of the overall costs, as shown below.


Significant work has already been done by the Commission to help keep party costs under control. It includes the 2014 guide, Effective Management of Arbitration: A Guide for In-House Counsel and Other Party Representatives, the 2012 report Techniques for Controlling Time and Costs in Arbitration, 2 and a revision of the ICC Arbitration Rules leading to the latest version of 2012 (the ‘2012 ICC Rules’).


The 2012 ICC Rules introduced two new additions to encourage greater control of time and costs by arbitrators. Article 37(5) provides that: In making decisions as to costs, the arbitral tribunal may take into account such circumstances as it considers relevant, including the extent to...