Costs: The importance of an estimate

• The SRA code of conduct requires all solicitors, from initial instructions, to provide an estimate of costs.
• There is a move towards clients giving informed consent to their costs. The costs information must be understood by the client, rather than merely provided by the solicitor.

A solicitor’s estimate should be based on the assumed work, be clear as to what is and is not covered, and leave the client in a position to make an informed decision. Just like a recent estimate to renovate my kitchen, many solicitors’ estimates fail to accomplish those simple goals.

An accurate estimate is an area which continues to plague the profession.

No matter the area in which a solicitor practises, unless all their work is covered by a fixed fee, the Solicitors Regulation Authority (SRA) code of conduct requires them, from initial instructions: to provide an estimate of costs and to regularly update the client as to their costs incurred;