Matter budget preparation checklist
Accurate matter budgets enable costs disclosure compliance and client satisfaction. This checklist is for lawyers preparing budgets at the start of a matter or on scope change.
This is a 12-step matter budget preparation checklist. It covers scope, phases, resources, risk contingency, and client disclosure.
The checklist
Define scope
Define the scope of engagement with clear inclusions and exclusions.
Break into phases
Break the matter into clear phases — advice, negotiation, drafting, court.
Estimate phase hours
Estimate hours for each phase by activity and lawyer grade.
Apply hourly rates
Apply agreed hourly rates to estimated hours per grade.
Estimate disbursements
Estimate disbursements — court fees, expert fees, counsel fees, travel.
Apply GST
Apply GST as a separate line consistent with the costs agreement.
Add risk contingency
Add a risk contingency for matters with factual or procedural uncertainty.
Document assumptions
Document each assumption underlying the estimate.
Identify scope change triggers
Identify events that would trigger a scope change and fresh estimate.
Costs disclosure letter
Include the budget in the costs disclosure letter with the required statutory information.
Obtain client approval
Obtain client acknowledgement of the budget before work commences.
Monitor actual vs budget
Monitor actuals against budget monthly and raise variance letters as needed.
When this checklist applies
Use at matter opening and whenever scope changes materially.
Common pitfalls
- Scope defined too vaguely
- Disbursements underestimated
- No contingency for factual uncertainty
- Assumptions not documented
- Variance not communicated promptly
Run this checklist on a real matter
Quillio can prepare matter budgets using historical data and flag variance during the matter. See /practice-areas/firm-management or start a free trial.
General guidance for matter budgets. Apply specific firm and jurisdictional costs rules.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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