Last updateTue, 24 Feb 2015 5pm

Rani Mina considers the impact of the new Practice Direction on costs budgets

Despite popular perception, lawyers are acutely conscious of the risk of costs becoming disproportionate in litigation and the importance to clients of understanding the likely amount and when costs will be incurred. Clients often request a costs budget for the delivery of legal services and require the engagement to be managed consistently with the budget. This is soon to be formalised in a new Practice Direction (PD51F) due to commence on 1 October 2011. It will take effect as a pilot in the Technology and Construction Court and Mercantile Court, and is likely to be rolled out to other courts in due course.