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13 January 2023 / Jack Ridgway
Issue: 8008 / Categories: Features , Profession , Costs
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When is an estimate a budget?

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While using estimates to prepare budgets may seem logical, in reality it is attempting to fit a square peg in a round hole: Jack Ridgway explains why
  • The difference between an estimate and a budget is not always clear to solicitors.
  • It is important to note that an estimate is not a budget.
  • Costs budgeting no longer allows a solicitor to kill two birds with one stone.
  • Prudent litigators must ensure the two remain distinct.

Lord Justice Birss asked at the Association of Costs Lawyers London Conference in November: why is there a distinction between an estimate and a budget?

While it may appear logical to suggest that the regular estimates given to the client should form the basis of a party’s budget, and therefore, are in essence one and the same, this logic fails to grapple with two key issues, namely:

  • When an estimate is actually an estimate; and
  • The differences between Precedent H and what the client wants.

What is an estimate?

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