George Egford, Solutions Manager, Financial Productivity at BigHand
By George Egford, Solutions Manager, Financial Productivity at Legal Futures Associate BigHand
In the UK, law firms must file a Precedent H cost budget on all multi-track cases. There are exemptions for cases of minor claims, claims in which the value is more than £10,000,000, or the Court has said it is not necessary. The latest market research on legal pricing and budgeting reveals that 99% of firms are introducing more mandating budgeting across matters. However, only 32% have introduced it firm wide, leaving opportunities for improvement.
It has been over 10 years since Precedent H was mandated and since then, many law firms continue to approach the filling through manual processes. I still hear from clients that it takes them a significant amount of time and resources to complete.
Filing Precedent H promptly is of the utmost importance for UK law firms. To gather all the relevant information needed to create a cost budget manually can take a lot of time. In many cases you have up to 21 days to file Precedent H. The deadline for filing is strict and as this is a requirement, automating the process will help your firm save time and make the process much easier.
When filing a Precedent H, the following are included:
- Your base costs incurred to date
- The future costs to be incurred for the entirety of the case up to and including Trial
Only foreseeable costs, both incurred and anticipated, are considered. Typically, these costs are detailed in the Direct Questionnaire, which is submitted along with the cost budget. Searching for these costs across spreadsheets and different systems can be time consuming. Technology can help turn this manual process into a much more efficient one by streamlining data and making it much more accessible.
In BigHand’s latest market research, “Trends Analysis for Legal Pricing and Budgeting”, data gathered from over 800 senior legal professionals over four years reveals market trends on how the legal landscape has evolved in how they price, bill, and budget. In 2024, 45% of firms confirmed they have a dedicated legal pricing and budgeting solution and a further 19% are looking to implement one in the next 12 months.
BigHand Matter Pricing is an AI-enabled budgeting tool that provides access to timely and comprehensive insight of legal transactions. The AI-enabled timecard analysis converts complex and inconsistent timecard information to identify the true cost, effort and make-up of a matter.
The solution gives users the ability to accurately and intuitively price, track and manage the financial performance of matters within the firm. Precedent H reporting is reduced from hours working in spreadsheets, to a few clicks of a button, allowing litigation teams to stay highly efficient.
Law firms who are currently using the technology have seen great results. Chris Oddy, Head of Pricing & Commercial Development, Womble Bond Dickinson reflects, “It’s very obvious that the matters we have tracked with BigHand have had better recoveries than those we have not. We also know that we are making a better margin on some matters that otherwise would not have been economic for us as a business; using the insight from BigHand, we’ve been able to change the delivery model to make these matters viable, while ensuring client satisfaction. Ultimately, BigHand Matter Pricing allows us to have better conversations with clients.”
The Precedent H feature in BigHand Matter Pricing is so efficient in creating budgets that many clients are using it for matters firm wide. With research confirming that law firms are heading in the direction of more mandated budgets across matters, the use of this feature becomes essential to legal budgeting.
BigHand Matter Pricing features cost/profitability projections allowing firms to easily adjust resources and rates in ‘what-if’ scenario planning to create to deliver the best pricing for you and your clients. The automated billing and cost loading eliminate the guesswork that can surround pricing matters. The solution offers law firms a way to accurately price and budget work, reducing costs and safeguarding profitability.
Filing Precedent H is a much quicker and more efficient process with BigHand Matter Pricing. Automate your budgeting and gain deeper insight into your billing and costs data by speaking to one of our specialists today.
