The importance of budgeting, costs management and compliance with the Court.
This article is important for costs professionals dealing with costs management orders and the amendment of costs budgets under the Civil Procedure Rules (CPR), particularly CPR 3.15A.
In brief, the dispute in this matter originated from a construction project in which BDW Trading Limited (the Claimant) accused Ardmore Construction Limited (the Defendant) of being responsible for defects in the building work. In March 2025, the Claimant took steps to revise its costs budget, which was originally submitted in June 2024. The revisions were sought under CPR 3.15A on the basis that there had been significant developments, particularly within the disclosure phase, since the filing of the original budget.
Although the Claimant had filed a budget, it had neither been agreed upon nor approved, and no Costs Management Order had been made. The defendant opposed the proposed amendment, resulting in a court hearing to determine the matter.
Mr. Justice Andrew Mitchell, sitting as a Deputy Judge of the High Court, addressed several important matters in his ruling. The judge initially noted the failure to promptly bring disputes regarding costs budgets to the court’s attention. He highlighted the importance of timely addressing such issues to ensure efficient case management.
The judge stated that the court has the power to issue a costs management order relating to the budgets submitted in June 2024. He clarified that such an order would not apply retrospectively but would reflect the Court’s assessment of the reasonableness of those budgets at the time they were filed.
With regards to the 2025 budget, the judge was satisfied that the Claimant’s assumptions had changed, and that it was appropriate to reflect that fact in a revised budget. The revisions to the Claimant’s budget were therefore allowed at a reasonable sum, taking into account the circumstances of the claim.
The findings highlight the court’s approach to costs management and the importance of adhering to procedural rules. It is vital that any issues regarding budgeting and cost management are dealt with efficiently and effectively.
How can PIC assist?
PIC can assist in preparing detailed and compliant costs budgets, ensuring that all anticipated costs are accurately estimated and justified. Should amendments or revisions to costs budgeting be required, PIC can advise on the appropriate steps to be taken, advising on the procedural rules and the requirements of the Court.
Steve Burn, Assistant Legal Costs Service Manager
29.05.2025