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General overview of the operation of the system

Part 36 payments and Part 36 offers can only be made once proceedings have started (r 36.2(4)). However, there is also provision to make a pre-action offer to settle, which will be taken into account by the court so long as it complies with the provisions of r 36.10, but only in relation to the question of costs.6 Once proceedings have started, a party can make a Part 36 offer or a Part 36 payment at any time (r 36.2(4)(a)). A Part 36 offer or payment can also be made in appeal proceedings (r 36.2(4)(b).