A Part 36 offer is a formal offer to settle a claim, made under Part 36 of the Civil Procedure Rules, that carries powerful costs consequences if it's refused and not beaten. Either side can make one. If you reject a defendant's Part 36 offer and then fail to do better at trial, you can end up paying costs from the date the offer expired — even if you win. Because of this, Part 36 offers must be considered carefully, ideally with legal advice.
Most injury claims settle without a trial, and the formal mechanism that drives many settlements is the Part 36 offer. It looks like a simple offer to settle, but it carries a sting in the tail designed to encourage sensible compromise. Understanding how it works can be the difference between a good outcome and an expensive mistake.
One thing to be clear about from the outset: we are an independent information service, not a law firm and not a firm of solicitors. Nothing here is legal advice about your own situation. For that, speak to an SRA-regulated solicitor or use the official sources we signpost below.
What a Part 36 offer is
A Part 36 offer is a formal written offer to settle, made under Part 36 of the Civil Procedure Rules (the rules governing civil claims in England & Wales). It can be made by the claimant or the defendant, at almost any stage, including before court proceedings start. What makes it different from an ordinary offer is the automatic costs consequences the rules attach to it — which is exactly why it is such a powerful tool to push both sides towards a fair settlement.
The costs consequences that give it teeth
⚠️ Rejecting an offer can be costly
If a defendant makes a Part 36 offer and you reject it, then at trial you are awarded the same or less, you can be ordered to pay both sides' costs from the date the offer expired — which can wipe out a chunk of your winnings. If you make a Part 36 offer the defendant rejects and you then match or beat it at trial, the rules reward you with enhanced interest and costs. The consequences are designed to make both sides think hard before saying no.
The time to consider an offer
A Part 36 offer normally specifies a relevant period — at least 21 days — during which it can be accepted with the standard costs protection for the offeror. You don't have to decide instantly, but you shouldn't let the period drift either, because accepting after it expires can change who pays the costs in between. Use the time to get your claim properly valued against the offer, including your medical prognosis and full special damages, so you're comparing like with like.
Deciding whether to accept
The core question is simple but hard: is the offer at least as good as what you'd realistically get at trial, once the risks and costs of fighting on are weighed? That needs a sober valuation, not optimism. A genuine offer that fairly reflects your medical evidence and losses is often worth taking, given the cost and uncertainty of trial. An offer that ignores your future losses or assumes an unrealistic recovery may be worth challenging. This balance of risk is precisely where an experienced solicitor earns their keep — see also going to court.
Why advice matters here
Part 36 is technical, and a misjudged response can cost far more than the value of the offer itself. Because the costs consequences can turn a win into a net loss, this is one area where independent legal advice is genuinely valuable, even in a claim you might otherwise run yourself. If you're acting through the OIC portal on a small-claims road-traffic injury, the costs landscape is different, but for higher-value claims the Part 36 calculus is central to how and when they settle.
Frequently asked questions
What is a Part 36 offer?
It is a formal written offer to settle a claim made under Part 36 of the Civil Procedure Rules. Either the claimant or the defendant can make one at almost any stage. What distinguishes it from an ordinary offer is the automatic costs consequences the rules attach to it if the offer is refused and not beaten.
What happens if I reject a Part 36 offer and lose?
If you reject a defendant's Part 36 offer and then at trial you are awarded the same amount or less, you can be ordered to pay both sides' costs from the date the offer expired — even though you won the claim. This can significantly reduce or wipe out your winnings, which is why such offers must be considered carefully.
How long do I have to consider a Part 36 offer?
A Part 36 offer usually specifies a relevant period of at least 21 days during which it can be accepted with standard costs protection. You don't have to decide instantly, but accepting after the period expires can change who pays the costs in the meantime, so use the time to get your claim properly valued.
Should I accept a Part 36 offer?
It depends on whether the offer is at least as good as what you would realistically achieve at trial once the risks and costs of continuing are weighed. A fair offer reflecting your medical evidence and losses is often worth taking; one that ignores future losses may be worth challenging. Independent legal advice is valuable here.
Can I make a Part 36 offer myself?
Yes. A claimant can make a Part 36 offer to the defendant. If the defendant rejects it and you then match or beat it at trial, the rules reward you with enhanced interest and costs. Because the mechanism is technical, it is usually made with the help of a solicitor.
Get help from official, free sources
- GOV.UK — official guidance on injury claims, the courts and your rights
- Citizens Advice — free, impartial advice on making a claim
- Solicitors Regulation Authority (SRA) & The Law Society — check and find a regulated solicitor
- Official Injury Claim (OIC) — the free portal for lower-value road-traffic injury claims
- Civil Procedure Rules (justice.gov.uk) — the rules and pre-action protocols that govern claims