Creating a Successful Litigation Budget
For many, creating a litigation budget feels like one of the hardest tasks in a litigation plan. However, submitting and monitoring an effective budget is critical. A strong litigation budget linked directly to invoices allows you to track your financial status in real-time. It fosters a “billing mindshare” within the legal team, promoting transparency and predictability. Most importantly, it creates a repeatable model that improves in detail and accuracy over time.
What Are the Elements of a Successful Litigation Budget?
When developing a cost estimate budget for a litigation plan, here are some best practices we recommend to clients:
1. Use a Standard Format
Using a consistent format across the entire budget ensures clear understanding among the legal team. Billing guidelines help establish a standard format, define timekeeper roles and rates, and outline the overall billing process.
2. Identify the Tasks
Every litigation plan involves specific tasks. Identifying these tasks in detail creates a litigation template. You should also include sub-tasks and high-level milestones. Then, estimate the total number of hours for each task assigned. Use task codes for billing, ensuring synchronization and real-time reporting.
3. Create Buy-In and Accountability
Assign a specific person to each task—whether document review or depositions. This creates buy-in and accountability within the team. If your platform allows team members to submit updates based on changes (like adding a custodian), the process becomes clear.
4. Communicate
Schedule regular status meetings, including budget updates. Frequent communication helps eliminate surprises and keeps the team on the same page. This cohesive approach allows for strategic decision-making throughout the litigation process.
5. Collaborate
Share and collaborate on cost details within a secure, cloud-based system. This system allows the entire team to access data from anywhere, promoting efficient communication and transparency.
Invest Time for Long-Term Gains
Creating a detailed litigation budget plan may feel like a large task upfront. However, dedicating time to this early in the process will pay off. It will evolve into a repeatable model that benefits similar future litigations.
Need Help?
If you have any questions about creating a cost estimate budget or want to learn how a strong litigation spend management plan can save on strategic and operational costs, contact us!