Only two per cent of costs lawyers have worked with solicitors who always stick to their budgets, a survey by the Association of Costs Lawyers (ACL) has found.
Of 117 costs lawyers surveyed, 72% said solicitors “sometimes” went over their budgets and 22% said this always happened.
The research suggests that one reason for this may be that budgeting takes place too early on in proceedings. Half (51%) of costs lawyers agreed that instead of doing it at the first case management conference, the hearing should be held later, once the course of the litigation is clearer.
Solicitors are also failing to update their budgets as the case progresses—nearly a third of costs lawyers (32%) have never seen an application to update a budget, and only 18% reported an increase in number of budget update applications.
ACL chairman Iain Stark said: “We are more than three years into costs budgeting and the reality is that—while it has been of benefit in some instances—it has not delivered in the way that was hoped.
“This is, at least in part, because many solicitors have still not properly engaged with the process, even though they risk court sanctions as a result. The alternative, as laid out starkly by the senior judiciary recently, is fixed costs for cases worth up to £250,000—a figure that covers the vast majority of litigation in England and Wales.
“Maybe this is the shock solicitors need to get serious about costs budgeting. Costs lawyers stand ready to help them.”
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