Precedent Q is a model form used in detailed assessment proceedings to provide a breakdown of the costs claimed for each phase of the proceedings, allowing a direct comparison between the costs actually claimed in a bill of costs and the costs anticipated in a costs budget. For costs draftsmen and receiving parties preparing to commence detailed assessment, understanding when a precedent Q is required, and what it needs to show, remains a routine but essential part of the process wherever a costs management order has been made. 

When Is a Precedent Q Required? 

Precedent Q was introduced from October 2015, following an amendment to the Civil Procedure Rules that added a new requirement to CPR 47.5(1). Since that amendment, a receiving party commencing detailed assessment proceedings must, if a costs management order has been made in the case, serve a breakdown of the costs claimed for each phase of the proceedings alongside the notice of commencement and the bill of costs itself. Precedent Q, found in the Schedule of Costs Precedents annexed to CPR Practice Direction 47, is the model form provided for this purpose. 

Where a case does not involve a costs management order, there is no requirement to serve a Precedent Q, since there is no approved budget against which the costs claimed need to be compared. 

What Precedent Q Shows 

A Precedent Q sets out, phase by phase, how the costs claimed in the bill of costs compare to the figures set out in the costs budget. This allows the paying party, and ultimately the court, to see clearly whether costs claimed for a given phase of the proceedings sit within, above, or below the budgeted figure for that phase, rather than having to work this out from the bill of costs alone. 

For each phase of the proceedings, a Precedent Q will typically show: 

• The costs incurred before the costs management order was made 

• The costs anticipated, or budgeted, following the costs management order 

• The total costs actually claimed for that phase in the build of costs 

• Any variance between the budgeted figure and the amount claimed, whether an overspend or an underspend 

Where the receiving party is using the electronic format bill of costs, this phase-by-phase information will generally already be incorporated, since the electronic bill format is itself structured around the same phases used in costs budgeting. In that situation, a separation precedent Q may not need to be served, provided the information is fully set out within the electronic bill. 

Why Precedent Q Matters at Assessment 

The significance of Precedent Q lies largely in how costs are treated on the standard basis of assessment. Where costs claimed for a particular phase exceed the budgeted figure for that phase, the excess will not generally be recoverable on a standard basis assessment unless the receiving party can show good reason to depart from the costs budget, in line with CPR 3.18 A clear Precedent Q makes it straightforward for a paying party to identify where this issue may arise, and for a costs judge to see it at a glance during assessment. 

The position works both ways. Where costs claimed for a phase are below the anticipated figure in the costs budget, they are not automatically reduced to reflect this and will generally still be considered on their merits during detailed assessment, in the same way as any other costs claimed. The costs budget approval process is intended to set an upper reference point for each phase, rather than to guarantee that the full budgeted amount will necessarily be recovered. 

The Practical Takeaway 

A well-prepared Precedent Q benefits both sides of a detailed assessment: 

• For the receiving party: an accurate Precedent Q, correctly cross-referenced against the approved costs budget, is one of the more effective ways of avoiding an unnecessary dispute over phase allocation at detailed assessment. 

• For the paying party: checking the Precedent Q, or the equivalent information within an electronic bill of costs, at an early stage is a useful way of quickly identifying which phases of the proceedings may need particular scrutiny. 

FAQs 

Is a Precedent Q always required when commencing detailed assessment?  

No. A Precedent Q, or equivalent breakdown, is only required where a costs management order has been made in the case. Where there is no approved costs budget, there is nothing for the costs claimed to be compared against. 

What happens if costs claimed for a phase exceed the budgeted figure?  

On a standard basis assessment, costs claimed in excess of the budgeted figure for a phase will generally not be recoverable unless the receiving party can demonstrate good reason to depart from the costs budget under CPR 3.18. 

Do I still need a separate Precedent Q if I’m using the electronic bill of costs? 

 Not necessarily. Where the electronic bill of costs already fully sets out the phase-by-phase breakdown required, a separate Precedent Q may not need to be served. 

Speak to Greener Costs Today 

If you need support preparing a Precedent Q, an electronic bill of costs, or advice on detailed assessment proceedings involving a costs management order, contact Greener Costs’ costs lawyers and costs draftsmen on 01204 263047 or info@greenercosts.co.uk.