HH Simon Brown QC continues his exclusive NLJ online series on costs management post-Jackson
So, what is “budgetary control”?
Budgetary control is a control technique whereby results are compared with budgets.
- Any differences (variances) are made the responsibility of key individuals who can either exercise control action or revise the original budgets.
- Control is provided by comparisons of actual results against budget plan. Departures from budget can then be investigated and the reasons for the differences can be divided into controllable and non-controllable factors.
- Budgetary control enables remedial action to be taken as variances emerge.
Budgetary control will be the most important task of the party’s case manager/partner because CPR 3.18 provides (Rule 11) that when assessing costs on the standard basis the court will:
- Have regard to the receiving party’s last approved or agreed budget for each Phase of the proceedings (CPR 3.18(a)); and
- Not depart from such approved or agreed budget unless satisfied there is good reason
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