Separate the settlement amount from the legal costs instructions

One figure can conceal several decisions

A director says the company will accept eighty thousand dollars to finish a dispute. Does that include interest, legal costs and the other party's counterclaim? Before asking the lawyer to draft an offer, explain the commercial instruction behind the number. A settlement proposal intended to have costs consequences needs more care than adding a legal label to an email.

Build an internal breakdown

Imagine a subcontractor claiming unpaid work and disputed variations. Prepare separate lines for the principal claimed, interest claimed and costs incurred. Identify which amounts the director is prepared to compromise. This internal worksheet helps the lawyer understand the instruction; it is not automatically a document to send to the other side or a calculation of what a court would award.

Let the chosen procedure shape the wording

business.gov.au advises businesses to consider the time and expense involved in legal recovery. Ask your lawyer how a proposed settlement treats those expenses and which offer mechanism suits the actual proceeding. The commercial breakdown is an instruction for that discussion, not a substitute for the applicable rules. Do not transplant an offer from another court or another business's dispute.

Source: business.gov.au: What to do when you haven't been paid

Explain the practical outcome you expect

In the subcontractor's example, the director may mean that each side pays its own lawyers and the agreed sum resolves specified claims. Say that plainly to the adviser. Ask what additional documents or orders would be needed. If a proposed figure leaves costs for later assessment, understand that separate issue before authorising the offer.

Check revised instructions as a whole

A last-minute reduction in the payment figure can leave an earlier costs instruction unchanged. Review the complete proposal with the lawyer after any amendment. Confirm who has approved the commercial compromise and retain the final version. Avoid sending a separate informal message that gives the other party a different account of what is being offered.

Keep the outcome uncertain until resolved

An offer does not guarantee acceptance or a particular costs order. Ask the lawyer to explain the remaining exposure and the next decision if it is rejected. Clear instructions help produce an offer the business understands, while leaving the legal assessment of its form and possible consequences with the adviser.