John O'Hare provides practical advice on revising a costs management budget
Costs management budgets are not costs caps; the court will expect the parties to regularly review them and to either agree, or apply for, revisions when necessary. It is most unlikely that anyone will be able to predict all the significant developments which will later occur in the course of a case, however carefully they drafted the first budget. Practice Direction 3E, para 2.6 refers to the making of revisions (upwards or downwards) if significant developments warrant them using words of obligation: “Each party shall revise its budget.”
Revisions are likely to be agreed or allowed whenever it becomes clear that any of the assumptions listed on the first page of the budget is false. Similarly, every budget is subject to certain implied assumptions (that opponents will not serve unnecessarily prolix pleadings or witness statements, or be uncooperative as to site inspections or inspection of documents). When setting your first budget you are usually entitled to assume that your opponents will
