Costs management and budgeting under the CPR: Precedents H, R and T, CMOs, variations, indemnity costs and pilot schemes (England and Wales)
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Practice notes
What is costs management?
Costs management is the process by which the court directs both the steps to be taken and the parties’ expenditure to advance the overriding objective (CPR 3.12(2)). It is implemented through costs budgeting and costs management orders (CMOs), intended to secure proactive and proportionate control of costs. A CMO is a judicial order that regulates the costs to be incurred in litigation, aiming to keep them within the agreed or approved figures in a party’s approved costs budget and in line with proportionality principles. For further information on costs management and costs budgeting generally, see Practice Note: Costs management and costs budgeting—general principles.
What are costs budgets?
The following provides a high-level overview of completing a costs budget and the points to consider. For more detailed guidance (in addition to the outline below), see Practice Notes: Costs budgeting—completing Precedent H (costs budget) and Cost budgets—form, content and practical considerations. A costs budget is a document prepared for the court that sets out the litigation costs a party expects to incur in the future (budgeted...
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Web page updated on 22/05/2026
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