Part 36 offer

A Part 36 Offer is a written offer to settle a dispute, specifying a period of not less than 21 days (‘the Relevant Period’) during which it can be accepted. If it is not accepted within the Relevant Period and the other party does not beat that offer then there will be costs consequences. They are a tactical incentive for parties to settle disputes without a court trial and can be claimant or defendant driven and at any stage in civil proceedings.

The Civil Procedure Rules (CPR), which were updated lin 2022, prescribes the criteria which must be met to satisfy being a Part 36 offer, and to ensure the costs consequences are applicable.

It must:

• Be in writing.
• Clarify that it is being made pursuant to Part 36.
• Specify a period of not less than 21 days within which the defendant will be liable for the claimant’s costs in accordance with rule 36.13 or 36.20 if the offer is not accepted (the Relevant Period); and
• State whether it relates to the whole claim or part of it and state whether it takes into account any counterclaim.
• Since 2021 'A Part 36 offer to accept a sum of money may make provision for accrual of interest on such sum after the date specified in paragraph. If such an offer does not make any such provision, it shall be treated as inclusive of all interest up to the date of acceptance if it is later accepted”.

An alternative is a Calderbank offer, also known as a “without prejudice save as to costs” offer.

[edit] Related articles on Designing Buildings

• Adjudication.
• Alternative dispute resolution.
• Arbitration Act.
• Arbitration panel.
• Arbitration v Adjudication.
• Arbitration in the construction industry
• Calderbank offer.
• Causes of construction disputes.
• Conciliation.
• Contract claims.
• Dispute resolution.
• Mediation.
• Pay now argue later.
• Pendulum arbitration.
• Provisional relief.