This LCIA arbitration cost calculator estimates the overall cost of LCIA arbitrations automatically.
LCIA arbitration costs are based on hourly rates, which are listed in the LCIA Schedule on Costs. As rates are hourly, this makes the precise determination of LCIA costs more difficult than with respect to other arbitral institutions such as the ICC, where costs are based on the amount in dispute.
Nevertheless, the LCIA publishes costs data, showing average LCIA administrative costs, arbitral tribunal fees and arbitration costs, such as in its Report on Costs and Duration of Arbitrations between 2013 and 2016. This makes it possible to estimate LCIA arbitration costs with reasonable certainty.
The following online tool estimates total LCIA arbitration costs between the filing of a Request and a Final Award. It also estimates legal fees and expert costs, which are the largest cost element in any international arbitration. The assumptions used in this LCIA arbitration cost calculator are listed below.
**Underlying sources and assumptions for LCIA Cost Calculator
- Average LCIA Administrative Charges and Arbitral Tribunal Fees are based on LCIA statistics for the cost and duration of arbitrations between 2013-2016
- Calculations are based on the Schedule of LCIA Arbitration Costs as of 1 October 2014
- Average legal fees range from GBP 150 per hour (low) to GBP 800 per hour (high). 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 LCIA arbitration requires between 1,000 and 5,000 hours of legal work, depending on its complexity. In case of doubt, enter 2,000 hours for the average amount of legal work per arbitration.
- In low-complexity cases (fewer than 2,000 hours of legal work) and small amounts in dispute (less than GBP 2,000,000), it is assumed that no quantum, delay or legal experts are required. Expert fees are estimated on the basis of the external legal fees to expert fee ratio shown in the CIArb Costs of International Arbitration Survey (2011).
- Anticipated expert, witness, management and external costs based on CIArb Costs of International Arbitration Survey (2011).
- VAT is excluded, and may or may not be applicable.
- Each party is assumed to split LCIA Administrative Charges and Arbitral Tribunal Fees equally. If a Respondent refuses to pay, its counterclaims will not be heard but the Claimant will need to bear the Respondent’s 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.
- While care has been taken to ensure robust estimates, the true cost of arbitration will inevitably vary.