Construction of a Costs Budget

constructionofacostsbudget

“Nobody would embark upon building works or any other business project without a budget, albeit subject to appropriate future revision. No-one suggests that quantity surveyors or bills of quantities are unnecessary merely because they lead to “front loading” of costs. Whether you are an individual caught up in a boundary dispute or a global corporation defending its patents, litigation is usually a major business project. I predict that in future years people will look back on the “old” regime of uncontrolled litigation costs as absurd.”

(Lord Justice Jackson)

To assist practitioners interpret Lord Justice Jackson’s suggestion that litigation is a major business project and should be approached accordingly, we spoke to a quantity surveyor who has a wealth of experience in handling the type of business projects referred to by Lord Justice Jackson.

The insights provided have been presented alongside those of an experienced construction barrister who, since the Jackson Reforms, is working on matters which are subject to both costs budgeting and court costs management.

To read the report which addresses the following questions, please click here [PDF].

  1. Where do you start?
  2. How do you deal with potential unforeseen circumstances?
  3. How long does it take to draft a costs budget?
  4. How often do you monitor and compare actual costs with those budgets?
  5. What do you do if actual costs are above or below the budget?
  6. How often do you have to recast the whole budget?

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