Monitoring legal spend involves looking at the money spent, sure, but it also has to take into account progress — what stage are we in with a project and where are we on spending for that phase. Will the remaining expenditures match what was forecasted? Where are we versus where we should be at this moment in time?

For the most part, within the legal projects that make up lawyer livelihood, money is part of the problem and also part of the solution. How much is at stake, and of course, how much are we spending in pursuit of it. The latter, sometimes known as cost burn, is a must monitor item for lawyers.

The notion of budgeting cost against project milestones is an integral part of the manufacturing industry, and the law has adopted it. This is why law firms are now expected by GCs to create costs budgets for clients for most types of work. These budgets are often set out in monitorable spreadsheets, indicating spend to date and expected future expenditure at defined stages. Indeed, in some jurisdictions, it is mandatory court procedure for legal teams to submit cost budgets to the judge for approval. And of course, the need to keep an eye on cost burn still applies in fixed fee and contingency work. Arguably more so.