Costs Management

Costs management allows the Court to maintain control over litigation. The process of controlling costs is focused around ‘cost budgets’. Cost budgets are prepared in a specific form called a Precedent H. A copy of a Precedent H and Guidance Notes can be found here.

Failing to serve a cost budget on time can have serious consequences. Rule 3.14 provides that unless the Court orders otherwise, a party who fails to file a cost budget will be treated as having filed a cost budget consisting only of Court fees. This could be catastrophic for your client from a costs perspective.

The Court is likely to make some form of costs management order throughout the proceedings which will record the extent to which any incurred or budgeted costs are agreed between the parties and in respect to any budgeted costs are not agreed, record the Courts approval while making the necessary revisions.