Unlike the official ICC arbitration cost calculator, an authoritative tool which calculates administrative fees and estimated arbitrator fees, this online tool calculates the same administrative and estimated arbitrator fees, for both expedited and regular ICC proceedings, while also automatically estimating all other ICC arbitration costs, including legal fees, expert costs, and anticipated witness, management and other costs, from filing a Request for Arbitration through to the rendering of a Final Award.
This is useful, since the costs of the ICC’s administrative fees and arbitrator fees make up only a small fraction of actual ICC arbitration costs. As indicated in ICC Publication 843, on average ICC administrative expenses account for only 2% of the cost per ICC arbitration, and arbitrators’ fees and expenses account for merely 16%. The ICC found that the remaining 82% of the cost per arbitration was made up of costs borne by the parties to present their case. The most significant cost element in all ICC arbitrations is legal fees for external counsel, and the CIArb Costs of International Arbitration Survey found that approximately 74% of a party’s external costs are, on average, spent on legal fees. There are many techniques to reduce the time and cost of international arbitration worth considering.
The following underlying assumptions are used in this automatic cost calculator:
- ICC and Tribunal costs are based on the ICC Scales of Administrative Expenses and Arbitrator’s Fees in force as of 1 March 2017
- Anticipated expert, witness, management and external costs based on findings of CIArb Costs of International Arbitration Survey (2011)
- In low-complexity cases, it is assumed that no experts are required
- Legal fees are estimated using a blended rate based on international surveys and reports
- VAT is excluded
- Each party is assumed to share ICC administrative expenses and the costs of the arbitral tribunal equally.