Costs Budget Preparation: Precedent H

A costs budget should reflect the work your case actually requires. Unrealistic estimates, missing assumptions or figures that do not match the proposed directions can create difficulties during negotiations and affect recovery later.

ARC Costs prepares costs budgets for solicitors across England and Wales, including complex clinical negligence, personal injury and commercial litigation matters. We examine the anticipated work, evidence and resources needed to prepare a reasoned Precedent H costs budget.

Our support can extend to budget negotiations, preparing Precedent R and representation at costs and case management hearings. Tell us about your deadline so we can discuss availability, charges and the information required.

Call 01204 397302 or email info@arccosts.co.uk.

Costs budgets built around your litigation

A budget combines costs already incurred with estimates for future work, including trial. Preparing it requires more than applying standard figures to each phase.

We consider the proposed directions, document volumes, witnesses, expert disciplines, hearing estimates and allocation of work between fee earners. The assumptions should explain how those features affect the time and expenditure anticipated.

For complex instructions, we discuss uncertainties with the litigation team. Alternative directions or unresolved questions about evidence may materially change the estimates.

The result should provide a clear basis for discussions with opponents and the court, while helping your team identify the resources needed to conduct the case.

What our costs budget preparation includes

We can assist with:

• Reviewing time records and separating incurred and estimated costs.

• Preparing Precedent H with supporting assumptions.

• Checking calculations and consistency between phases.

• Reviewing an opponent’s budget and identifying disputed estimates.

• Preparing the budget discussion report.

• Negotiations and representation where required.

We agree the scope before proceeding. Your litigation team’s input remains important: the budget needs to reflect the intended conduct of the case.

When must you file a costs budget?

Under the usual Civil Procedure Rules timetable, unless the court orders otherwise, represented parties required to budget must file and exchange budgets with their directions questionnaires where the stated claim value is below £50,000. Otherwise, budgets must be filed and exchanged at least 21 days before the first case management conference.

The requirement is not universal. Exceptions include specified high-value claims, certain child claims and proceedings subject to fixed or scale costs. Litigants in person are ordinarily excluded from the filing obligation.

Always check applicable orders and any specialist or pilot provisions before calculating the deadline.

Budget discussions and Precedent R

Preparing your budget is only part of the process. Reviewing the opponent’s figures helps identify which phases can be agreed and where substantive differences remain.

We assist with negotiations and preparation of the Precedent R budget discussion report, recording agreed figures and disputed amounts. Under the usual timetable, this report is due seven days before the first case management conference.

An agreed budget should be considered alongside the proposed directions and assumptions, rather than negotiated solely by reference to headline totals.

The costs management order and later recovery

A costs management order records agreement or approval of budgeted phase totals. It does not approve incurred costs or fix the underlying hourly rates.

An approved costs budget therefore requires ongoing attention as the case develops. Monitor expenditure against each phase and seek advice before you incur costs beyond the anticipated scope.

Under CPR 3.18, when the court comes to assess the costs on the standard basis, it considers the last approved or agreed budgeted costs and requires good reason to depart from them.

Approved budgeted costs are consequently important at detailed assessment, but budget approval is not a guarantee that every amount claimed will be recovered.

Revising a budget when the case changes

Significant developments may require an upward or downward revision. Examples could include additional expert evidence, expanded disclosure or a changed trial estimate, depending on the circumstances.

We can advise on the budgeting implications and assist with Precedent T. Prompt action matters: effective cost management involves reviewing the position while the case progresses.

Frequently asked questions

What happens if we miss the filing deadline?

Where budgeting is required, failure to file can result in being treated as having a budget comprising court fees only, unless the court orders otherwise. Seek urgent advice about compliance and any application for relief from sanctions.

What information does ARC need?

Supply relevant orders, proposed directions, pleadings, time records, rates and anticipated disbursements. Explain the expected witnesses, experts and trial duration. We identify further requirements after reviewing the instruction.

Can ARC handle complex budgets?

Yes. We prepare budgets for substantial litigation requiring careful analysis of evidence, staffing and assumptions. Delivery arrangements reflect the complexity and deadline.

Can you help with an approaching hearing?

Contact us immediately with the hearing date and available documents. We will assess the work and confirm whether we can accommodate the instruction.

Instruct ARC Costs

Contact 01204 397302 or info@arccosts.co.uk to discuss costs budget preparation, negotiation or hearing support.

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