A scheme to reduce the price of going to court for smaller builders is being tested at Birmingham鈥檚 branch of the Technology and Construction Court
The pilot, which began on 1 June, is based on proposals by Lord Justice Jackson, the former head of the TCC, in response to small firms鈥� complaints about the expense of litigation.
Under the scheme, lawyers have to submit 鈥渄etailed budgets of their estimated costs鈥� at regular intervals to the judge, who then amends or approves them.
Jackson hopes this process, which is being trialled on cases worth about 拢25,000-500,000, and is also taking place in the Mercantile Court, will make it easier for SMEs to litigate. If successful, it could be rolled out nationwide.
Ian Yule, a partner in Shakespeare Putsman, said: 鈥淔or a typical case, in which the costs are 拢200,000 on each side, it may save each 拢50,000.鈥�
He added: 鈥淢any cases are virtually impossible for small companies to litigate, because of the risk of losing and the consequent costs.鈥�
The National Federation of Builders said: 鈥淭his is only a pilot scheme and needs to stand the test of a tangible work-out in the courts. There is a concern that the cost management process itself actually adds to the legal bill.鈥�
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