Unlike the official HKIAC fee calculator, an authoritative tool to determine administrative fees and arbitrator fees for HKIAC arbitrations, this HKIAC arbitration cost calculator determines the same administrative and arbitrator fees for HKIAC arbitrations, using the 2015 HKIAC Schedule of Fees for arbitrations administered in accordance with the 2013 HKIAC Administered Arbitration Rules, while also automatically estimating all other costs per HKIAC arbitration, including legal fees, expert fees and anticipated witness, management and other party costs, from the filing of a Request for Arbitration through the rendering of a Final Award.
This is useful, as the majority of HKIAC arbitration costs do not relate to administrative or arbitrator fees, but instead to party costs, especially legal fees and expert fees. All assumptions used in this HKIAC arbitration cost calculator are listed below.
** The following underlying assumptions are used in this HKIAC arbitration cost calculator:
- HKIAC and Arbitral Tribunal fees are based on the 2015 Schedule of Fees for arbitrations administered in accordance with the 2013 HKIAC Administered Arbitration Rules. Results should be identical to the official HKIAC Fees Calculator.
- Pursuant to Articles 10.3(c), 18.2, 27.14 or 28.9 of the 2013 HKIAC Rules or in other exceptional circumstances, the arbitral tribunal’s fees may exceed the amount set out above.
- Average legal fees range from HKD 1,000 per hour (low) to HKD 6,000 per hour (high). It is safe to assume legal fees of HKD 1,500 to 3,000. Leading arbitration law firms such as Aceris Law that charge competitive legal fees will lower this head of costs, which is typically the largest single cost element.
- The average HKIAC arbitration requires between 1,000 and 5,000 hours of legal work, depending on its complexity, the procedure adopted and the actions of opposing counsel. In case of doubt, enter 2,000 hours for the average amount of legal work per arbitration, which is fairly standard.
- In low-complexity cases (fewer than 2,000 hours of legal work required) and where there are small amounts in dispute (less than HKD 15,000,000), it is assumed that no quantum or legal experts will be required. This may not always be the case.
- Expert fees are estimated on the basis of the external legal fee to expert fee ratio shown in the CIArb Costs of International Arbitration Survey (2011), which is the single most complete source of data on arbitration costs to date.
- Anticipated witness, management and other external costs are also based on the ratio between legal fees and such costs in the CIArb Costs of International Arbitration Survey (2011).
- Taxes are assumed to be inapplicable.
- Each party is assumed to split HKIAC Administrative Fees, Arbitrators’ Fees and expenses equally, although if a Respondent refuses to pay, its counterclaims will not be heard but the Claimant will need to bear its costs (which can then be claimed as costs at the end of the arbitration).
- A successful party may be reimbursed all or a significant portion of its legal costs by the losing party in the final arbitration award. This possibility is not factored into this model.