Whatever one might think about the Jackson reforms, the die is now cast and at Practico we want to be the partner of choice for law firms and in-house legal departments who need to engage with costs management.

In the medium term costs drafting in the conventional sense will be replaced by reviews of costs incurred against budgets. Already we are seeing costs claims emerging from the costs management pilots that suggest parties are floundering with how to present the comparison – some are even failing to address the issue.

The leadership team at Practico are in the vanguard of the changes and have been preparing for the evolution of costs management since 2009. One thing is certain. Without the buffer of recoverable success fees and in the increasingly tough economic environment we are all in, law firms will not be able to withstand losses sustained as result of blowing budgets. Early warnings will be vital to the prospects of plugging leaks or applying for variations before “the horse has bolted”.