Costs management: preparing budgets and completing Precedent H and Precedent R

by Practical Law Dispute Resolution, based on material originally contributed by Sue Nash, Litigation Costs Services

This note gives practical guidance on completing Precedent H, the form for a costs budget, and Precedent R, the budget discussion report. It also raises some general issues to consider about costs budgets. Further guidance on costs management is in related notes. A Practice Note providing guidance on the costs management regime under the Civil Procedure Rules (CPR) 3 and Practice Direction (PD) 3D. This Practice Note focuses on the practical aspects of preparing and filing costs budgets using Precedent H and engaging in discussions with Precedent R. It outlines the scope of the rules for Part 7 multi-track cases and delves into the structure of Precedent H, covering the breakdown of incurred and estimated costs, the prescribed litigation phases, and the critical importance of detailing clear assumptions. The Practice Note also examines the process for agreeing budgets and the requirements for the Precedent R budget discussion report. It further addresses the procedure for varying an approved budget under CPR 3.15A due to "significant developments", referencing key case law for context. The note offers practical tips on monitoring expenditure against the budget, managing expert and counsel fees, and satisfying the overarching requirement for proportionality