Comparison of costs at leading arbitral centres

The cost of arbitration is a growing area of concern for parties. A particular area of expenditure that is often overlooked are the upfront costs that must be paid when starting an arbitration. This includes what can be surprisingly large advances and deposits.

We have compiled a quick reference guide that shows the different ways that arbitral institutions calculate administrative fees and tribunal costs as well as the amount of advances/deposits. As can be seen from the table below, some institutions provide greater degrees of certainty than others when calculating these fees and costs.

The estimates of the fees and costs provided in the table assume an international dispute before a sole arbitrator and a claim of US$10million. This includes the maximum fee that the sole arbitrator is intending to charge. That said, most institutions carry a caveat that in exceptional cases maximums can be exceeded with the agreement of the parties.

This table should serve as a useful reminder of the costs involved when initiating an arbitration and the differences between the institutions in this regard. Consideration should be given to these fees and costs when drafting arbitration agreements and selecting institutions. They should also be taken into account before starting an arbitration so there are no surprises when receiving the first invoice from the arbitral institution.

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