Costs budgeting—completing Precedent H (costs budget)
Costs budgeting—completing Precedent H (costs budget)

The following Dispute Resolution guidance note provides comprehensive and up to date legal information covering:

  • Costs budgeting—completing Precedent H (costs budget)
  • Which CPR provisions apply?
  • What is Precedent H?
  • Which form should I use?
  • Completing Precedent H—budget must reflect the client’s costs liability
  • Completing Precedent H—incurred costs
  • Completing Precedent H—contingencies
  • Case study
  • Amending or varying Precedent H
  • Budget discussion report (BD Report)
  • more

Changes to CPR PD 3E, para 7.4 that came into force on 1 October 2019, made it clear that the term ‘incurred costs’ includes costs incurred up to the date of the costs management hearing. The changes to the practice directions were set out in the 109th practice direction updates:

109th practice direction updates

The Guidance Notes to Precedent H were also revised on 1 October 2019. The revised guidance contains the following changes:

Additional text in para 4:

This table identifies where within the budget form the various items of work, in so far as they are required by the circumstances of your case, should be included. The time estimated may have to be justified on the budget hearing along with the grade of fee earner doing the work. (additional wording in italics).

New para 10:

‘Definition of budgeted and incurred costs: see CPR 3.15 and PD3E para 7.4.

a. Incurred costs are all costs incurred up to and including the date of the first costs management order, unless otherwise ordered.

b. Budgeted costs are all costs to be incurred after the date of the first costs management order.’

The table in the guidance identifying where, within the costs budget, various items of work should be placed has also been updated to require that costs for the following be included in the costs budget: amendments to