Construction disputes exempt from automatic costs management

Construction and technology disputes dealt with by the TCC are exempt from the new automatic costs management regime which came into force on 1st April 2013.

As part of the wide-ranging changes to court costs and procedures introduced, most people involved in civil court actions must prepare and exchange cost budgets, which need to be agreed by the court.

This move comes despite the fact that costs management was piloted in the TCC and Mercantile Courts, which are also covered by the new exemption, along with the Chancery Division, for cases where the disputed sum exceeds £2 million, excluding interest and costs.

“On further reflection, it has been recognised that it is undesirable for an exception from automatic costs management to apply only to the Admiralty and Commercial Courts, when in many commercial cases there is an element of concurrent jurisdiction between that court, the Chancery Division, the Technology and Construction Court and the London Mercantile Court, all of which function in the Rolls Building,” the practice direction explained.

“Equally, outside London, the Chancery Division, Technology and Construction Court and Mercantile Courts have a similar concurrent jurisdiction.”

As construction law is a very complex area, it is best to seek legal advice as soon as possible if you have a commercial dispute you wish to resolve. At Palmers, our specialist solicitors can advise on all your options, so you can decide what course of action, if any, is best for you.

For more information and guidance, please visit our website or contact Adam Davis.