Costs of arbitration

Overview

The costs of the arbitration include the fees and expenses of the arbitrators and the ICC administrative costs fixed by the Court in accordance with the scale in force, as well as the fees and expenses of any experts appointed by the Arbitral Tribunal and the reasonable legal and other costs incurred by the parties for the arbitration (Article 31(1)).

Once the arbitrators' fees and expenses and the ICC administrative costs have been fixed by the Court at the end of the proceedings, the Arbitral Tribunal fixes the costs of the arbitration in the Award and decides which of the parties shall bear them or in what proportion they shall be borne by the parties (Article 31(3)).

Fees and administrative expenses calculator 

This calculator enables prospective parties to an ICC arbitration to apply the scales of Appendix III for ICC administrative expenses and arbitrators' fees.

Costs of the arbitration - Details

• Arbitrators' fees 

The arbitrators' fees are managed by the Court and fixed on the basis of the relevant scale found in Appendix III (Article 4 (B)), taking into consideration the diligence of the arbitrators, the time spent, the rapidity of the proceedings and the complexity of the dispute (Appendix III, Article 2 (2)). Based on the amount in dispute, the scale provides a minimum and a maximum for one arbitrator.

The fees are multiplied by the number of arbitrators up to a maximum which shall normally not exceed three times the fees of one arbitrator. In case of necessity due to exceptional circumstances, the Court may fix the fees of the arbitrators at a figure higher or lower than that which would result from the application of the relevant scale (Article 31 (2)). Where the sum in dispute is not stated, the Court fixes the arbitrators' fees at its discretion.

• Arbitrators' expenses

The arbitrators' expenses are also managed by the Court and include such expenses as for travel, accommodation, meals, couriers and facilities for hearings.

• ICC administrative expenses

The "administrative expenses", also referred to as "administrative costs", represent the fee charged by the ICC Court for the administration of an arbitration case. The amount of US$ 2500, the payment of which accompanies the Request, is an advance on administrative expenses. Since this first advance is not refundable, it is often called the registration fee, or filing fee. The Court fixes the administrative expenses on the basis of the scales set out in Appendix III (Article 4 (A)), or, where the sum in dispute is not stated, at its discretion. In exceptional circumstances, the Court may fix the administrative expenses at a lower or higher figure than that which would result from the application of the scale (Appendix III, Article 2 (5)) provided the expenses shall normally not exceed the maximum amount of the scale (US$ 88 800).

• Fees and expenses for expert(s)

In those cases where an expertise is ordered by the Arbitral Tribunal, the latter fixes the fees and expenses of the expert(s) and is responsible for the management and payment of such fees and expenses by the parties. The costs of an expertise are not covered by the advance on costs required by ICC, although the Secretariat may administer the accounts as a service to the Arbitral Tribunal.

Legal costs

The cost of legal representation and the other costs incurred by the parties for the arbitration are not covered by the advance on costs required by ICC. They are included in the costs of the arbitration as fixed by the Arbitral Tribunal in the Award. 

Advances on costs

The ICC advance on costs system is designed to ensure that an arbitration may proceed as soon as the relevant fees and expenses of the arbitrators and the institution are covered. The advances do not cover legal costs nor the fees and expenses of an expert. Payment is staggered as follows:

• Advance on administrative expenses (filing fee)

A first advance on administrative expenses of US$ 2500 is payable by the Claimant with the Request for Arbitration.

• Provisional advance

After a review of the Request, the Secretary General normally requires the Claimant to pay a provisional advance in an amount intended to cover the costs of the arbitration until the Terms of Reference have been drawn up. This advance shall normally not exceed the amount obtained by adding together (1) the administrative expenses resulting from the scale, (2) the minimum on the scale of arbitrators' fees, and (3) the expected reimbursable expenses of the Arbitral Tribunal incurred with respect to the drawing of the Terms of Reference (Appendix III, Article 1(2)). These calculations are made on the basis of the Claimant's claim only. Current practice indicates that the provisional advance is usually in the range of 25% to 35% of the advance as calculated for the entire arbitration.

• Advance on costs

As soon as practicable, the Court, taking account of all claims and counter-claims, fixes the advance on costs payable in equal shares by Claimant and Respondent (the amount of the provisional advance that has already been paid, which includes the initial US$ 2500, is credited to the Claimant's share). In certain circumstances, the Court may fix separate advances in respect of a principal claim and a counter-claim. The advance fixed by the Court is calculated for the entire arbitration and can be revised at any stage of the procedure. A special calculator is provided here to help parties make an assessment of arbitrators' fees and administrative expenses. As the arbitrators' expenses are not determinable beforehand, they are not included in the computation made by the calculator.

If the Claimant or the Respondent pays its share of the advance on costs and the other refuses to pay, the former will be invited to pay on behalf of the latter.