At ARC Costs, we specialise in preparing, negotiating, and advising on Costs Budgets (Precedent H) for solicitors, litigants in person, insurers, and commercial clients involved in multi-track cases. Our highly experienced costs team ensures every budget is accurate, compliant, and aligned with both the CPR and the Court’s expectations on proportionate costs.

Under CPR 3.13, parties in multi-track claims are required to file a Costs Budget unless the Court orders otherwise. Failure to comply with budgeting rules, particularly with the strict 21 days deadline before the Case Management Conference (CMC), can lead to serious consequences, including costs being limited to applicable court fees only. ARC Costs ensures complete compliance, helping you avoid the significant risks associated with failing to file a Budget.

If you are late in filing a Costs Budget, then we can assist in emergency turnaround of urgent instructions, and you must ensure that any application for is made promptly.

What is a Costs Budget (Precedent H)?

A Costs Budget, also known as a Precedent H, is a document required in many multi-track civil claims. It sets out both costs incurred to date and the estimated future costs that a party intends to claim. The purpose is to promote effective cost management, ensuring that litigation costs remain reasonable and proportionate throughout the case.

Precedent H forms the basis for:

• Budget discussions between parties;
• Judicial approval of the costs of litigation;
• Costs control through a Costs Management Order, and;
• The assessment of costs at the end of the claim.

Ironically though the costs involved in budgeted cases are often significant in value, the subsequent bills that are produced are often more straight forward to negotiate than non-budgeted cases, owing to the level of certainty as to recovery that costs budgeting provides.

At ARC Costs, our team of qualified Costs Lawyers and experienced Costs Draftsman prepare thoroughly reasoned budgets that stand up to judicial scrutiny, and reflect the strategic needs of each case.

When is a Costs Budget Required?

Under CPR 3.13, a party must file and exchange their budget no later than 21 days before the first Costs and Case Management Conference (or with the Directions Questionnaire if the claim is valued at less than £50,000). This applies to most Multi-Track cases, with some exceptions.

Cases exempt from costs budgeting under CPR 3.12 include claims where the:

• Claimant has a limited or severely impaired life expectation (5 years or less remaining);
• Pleaded valued of the claim is in excess of £10 million;
• Claimant is a minor, and;
• Court expressly dispenses with budgeting

In all other scenarios, filing and exchanging a Costs Budget is mandatory.

What Happens if you Fail to File a Costs Budget?

If a party fails to file their budget on time, the court may severely limit their recoverable costs to applicable Court fees only. This can have devastating financial consequences and if you fail to file a Budget in time, it is imperative you take prompt action to remedy the default, and to make a prompt application for relief from sanctions.

Undue delay is likely to imperil any application for relief, particularly if it causes any Costs and Case Management Conference to be ineffective.

The ARC Costs team are able to ensure your strict compliance with deadlines and Court rules, preventing such sanctions and protecting your ability to recover full and reasonable costs.

Our Costs Budget (Precedent H) Services

Preparation of Costs Budgets

Our team prepares detailed, accurate and realistic budgets tailored to the specific needs and complexity of each case. This includes:

• Reviewing instructions, pleadings, evidence, and case strategy;
• Breaking down all phases of the litigation, including disclosure, witness evidence, experts, trial preparation, and trial;
• Analysing costs incurred to date and quantifying these into the relevant budget phases;
• Providing realistic projections for estimated future time and disbursements, and;
• Ensuring budgeting aligns with proportionality principles.

Every Precedent H we produce is fully CPR-compliant and meticulously drafted.

Filing and Exchanging Costs Budgets

Budgeting errors often arise simply because deadlines are missed or documents are filed incorrectly. The Costs Lawyers at ARC Costs can act on your behalf and assist in all aspects of filing and exchanging the Costs Budget to ensure full compliance.

We liaise with the Court and opposing parties and provide proactive reminders ahead of the 21-day deadline.

Budget Discussion Reports

Following service of Precedent H, parties must attempt to agree budgets and prepare a Budget Discussion Report (also known as a Precedent R).

ARC Costs prepares the Precedent R Budget Discussion Report on your behalf with regards to opposition Budgets, outlining:

• Costs phases agreed
• Costs phases disputed
• Proposed alternative figures
• Key justifications

This document is critical for a productive CCMC and significantly impacts the final agreed budget and any subsequent Costs Management Order.

Representation at Costs and Case Management Conferences

ARC Costs can represent you at the Costs and Case Management Conference, ensuring your budget is properly presented and defended.

Our qualified/regulated Costs Lawyers will assist with:

• Challenging excessive elements of the opponent’s budget
• Justifying your own projected costs
• Addressing proportionality concerns, and
• Ensuring the Court adopts a fair and reasonable Costs Management Order.

Our team includes seasoned costs advocates experienced in negotiating and defending budgets before judges at all levels.

Support for Litigants in Person

Litigants in Person often struggle to meet the technical requirements of Precedent H and the budgeting process. Though the general rules are that a Litigant in Person does not need to file and serve a Costs Budget (CPR 3.13(1)), they can often struggle to deal with negotiations as to an opponent’s Costs Budget.

ARC Costs provides specialist support to Litigants in Person (for whom our Costs Lawyers are regulated to act for) to ensure their documents are compliant, and that they understand the budgeting obligations and ability to negotiate the other side’s Budget under the CPR.

We help with drafting, filing, negotiation, and representation at hearings.

Why Choose ARC Costs?

• Specialist team experienced in all areas of cost management;
• Fast turnaround (and urgent timescales can be adhered to in certain circumstances) and deadline protection;
• Accurate, CPR-compliant Precedent H budgets;
• Skilled advocacy at budgeting hearings;
• Transparent pricing, with fixed fees cited, and;
• Support for law firms, insurers, commercial clients, and litigants in person.

With our expertise, you can be confident your budget will be robust, realistic, and properly positioned for approval.

Whether you require full preparation of a Costs Budget (Precedent H), help with a Budget Discussion Report, or representation at a Costs and Case Management Conference, ARC Costs is here to assist.

Contact our team today for expert support with all aspects of filing and exchanging budgets in multi-track cases.

Should you require any assistance or free initial advice, please call us on 01204 397302, or email one of our costs experts direct on info@arccosts.co.uk. 

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