Costs Budget Advice Guide : FAQs
ARC Costs Lawyers and Draftsmen
A Digital First, Costs Draftsman Service. Providing expert assistance in all aspects of legal costs matters.
When is a costs budget required?
In Multi-Track cases, parties must file a Costs budget with the Directions Questionnaire if the claim value is under £50,000, or 21 days before the first Case Management Conference (CCMC), if the value on the claim form is pleaded over £50,000.
We recommend to many of our clients that it is best to file a Precedent H with the Directions Questionnaire to avoid the risks of being awarded Court fees only, and having to apply for relief from sanctions.
What should be included within a costs budget?
A Cost Budget details your base costs incurred to date, and future costs to be incurred for the totality of the case up to and including Trial. VAT and additional liabilities (any success fee or ATE premium) are excluded from the Budget figures.
Costs of preparing the Budget and the Costs Management process do not form part of the central figures, but can be located in the bottom right of the front sheet of the Budget as the respective 1% and 2% figures.
Can a costs budget be amended?
Prior to any Budget being approved, we would strongly recommend that your Cost Budget is updated to ensure incurred and anticipated costs are up to date.
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When it comes to preparing a Bill of Costs, there can be a significant discrepancy between incurred costs shown in the Bill and Budget. This can be due to the passage of time that has passed between the Cost Budget preparation and any CCMC, but this can be avoided if an updated Cost Budget is filed and served prior to any CCMC.
To find out more, read the full article on our website.
How can ARC Costs assist?
As experienced Costs Draftsmen and Costs Lawyers, we act as independent experts for either paying or receiving parties in order to maximise/minimise the amount of legal costs payable.
As part of our service, we regularly provide and negotiate Costs Budgets, as well as preparing electronic Bills of Costs on conclusion of any successful case.
To speak with one of our costs experts, call us on 01204 397302, or email one of the team at info@arccosts.co.uk.