eDiscovery costs can increase mid-project when the scope of discovery changes, additional data sources are identified, review requirements expand, or a matter takes longer than originally anticipated. Changes to custodians, file types, privilege review, production requirements, and hosting duration can all impact the overall project cost.
The key to managing an eDiscovery budget is understanding what drives costs, establishing a clear scope at the outset, and communicating changes early to avoid unexpected expenses.
Even with proper planning, projects can evolve as litigation progresses. New information may identify additional custodians, previously unknown data sources, or the need for more extensive review. While these changes are not always avoidable, legal teams can minimize unexpected costs by identifying potential cost drivers early and working with their eDiscovery partner to understand the financial impact of any changes.
eDiscovery involves several connected stages, including data collection, processing, hosting, review, and production. Changes at one stage can impact the work required at others. Understanding the most common cost drivers can help legal teams identify risks early and avoid unexpected costs.
1. Adding Custodians or Expanding Data Collection
The initial scope of discovery typically identifies the custodians whose data needs to be collected and reviewed. As a matter progresses, interviews, new evidence, or opposing counsel's requests may reveal additional people whose information is relevant.
Each additional custodian can introduce new collection work, data processing, hosting requirements, and document review. Costs can increase further when the data needs to be collected from multiple devices, cloud platforms, or communication systems.
How to manage it: Establish clear criteria for selecting custodians and consider potential additions early in the process. Before proceeding with additional collections, ask your eDiscovery partner to understand the anticipated data volume, scope of work, and potential impact on the overall budget.
2. Discovering New Data Sources Late
Email and standard business documents may only represent part of the relevant evidence. Teams may later identify additional data sources, such as mobile messages, collaboration platforms, cloud storage, shared drives, or other business systems.
These sources may require different collection methods and additional processing to preserve metadata, relationships, and context. Modern attachments and chat data may also require specialized handling to ensure the information can be properly reviewed.
How to manage it: Identify potential data sources early in the case assessment process. Involve the appropriate IT and business stakeholders to confirm which sources are included in the original scope. If additional sources are identified, assess their relevance and collection requirements before proceeding with any additional work.
3. Adding File Types or Handling Complex Data
Not all electronically stored information can be processed in the same way. Unusual file formats, encrypted files, corrupted data, large media files, and complex communication records may require additional tools or specialized workflows.
If the original estimate is based on standard office documents and email, unexpected data types can create processing challenges, require additional troubleshooting, and increase the work needed to prepare documents for review.
How to manage it: Discuss the expected data types with your provider before collection begins. Understand how exceptions will be handled, what processing assumptions are included in the estimate, and what additional work could result in extra costs.
4. Expanding Privilege Review Requirements
Privilege review can require additional time and resources when a matter involves additional lawyers, sensitive communications, complex privilege rules, or a higher-than-expected volume of potentially privileged documents.
Changes to review protocols or additional quality control requirements can also increase the time needed to complete the review. While these steps may be necessary to protect privileged information, they can also impact the overall budget and timeline.
How to manage it: Establish clear privilege criteria and escalation procedures early in the process. Discuss whether targeted searches, analytics, Technology Assisted Review (TAR), or AI-assisted workflows could help prioritize potentially privileged material. Any technology-assisted approach should include appropriate validation and lawyer oversight.
5. Review Volumes Exceeding Expectations
The number of documents collected does not necessarily reflect the number that will require substantive review. Early filtering and culling can help reduce the review population, but the final volume may differ from initial estimates.
An expanded scope, less effective filtering, additional review issues, or changes to responsiveness criteria can increase the number of documents requiring review. Additional quality control or second-level review can also increase the overall time and effort required.
How to manage it: Use early case assessment to develop a better understanding of the anticipated review population. Monitor document volumes and review progress throughout the matter, and revisit the budget when actual volumes differ significantly from initial expectations.
6. Changes to Production Requirements
Production requirements can change as litigation progresses. Requests for additional metadata fields, different file formats, revised redactions, or additional production sets may require further processing, quality control, and technical work.
Corrections to previous productions can also result in additional costs, particularly when changes impact a large number of documents or require work that has already been completed to be repeated.
How to manage it: Confirm production specifications, file formats, metadata fields, redaction requirements, and delivery expectations early in the process. If requirements change, work with your provider to understand the additional effort and potential costs, and obtain approval before proceeding when possible.
7. Hosting Longer Than Expected
Many eDiscovery environments have recurring hosting charges based on factors such as data volume, storage requirements, or agreed-upon pricing structure. When a matter takes longer than originally anticipated, those charges can add up over time.
Delays in review, negotiations, court schedules, or final production decisions can extend how long the data needs to remain hosted. Additional collections can also increase the overall volume of data being maintained.
How to manage it: Understand how hosting is billed, what storage assumptions underpin the estimate, and when charges begin and end. Review workspace usage regularly and work with your provider to identify opportunities for archiving or deleting data that is no longer required, while ensuring preservation obligations are met.
8. Unclear Change-Order Communication
Sometimes the biggest cause of unexpected costs is not a technical issue, but a lack of communication around changes to the project scope and how they impact the budget.
When additional work begins without a clear understanding of the scope, anticipated costs, or its impact on timelines, legal teams may not realize that the original budget is no longer accurate.
How to manage it: Establish a clear change-management process at the beginning of the engagement. Confirm who is authorized to approve additional work, how revised estimates will be provided, and how changes will be documented and communicated throughout the project.
Not every change in discovery scope can be avoided. However, there are practical steps legal teams can take to better manage costs and minimize unexpected expenses.
1. Define the initial scope early. Identify and document expected custodians, data sources, file types, review requirements, production specifications, and hosting assumptions. Be clear about any known uncertainties and recognize that initial estimates may need to be adjusted as the matter progresses.
2. Build a realistic eDiscovery budget. Consider all stages of the matter, including collection, processing, hosting, review, and production. Build in reasonable contingencies where scope or anticipated data volumes are not yet fully known.
3. Use early case assessment. Assess data volumes, potential relevance, and anticipated review populations before committing to the full scope of work. Having better visibility early in the process allows legal teams to make more informed decisions about collection and review.
4. Monitor spending against actual activity. Request regular updates on data volumes, processing exceptions, review progress, hosting usage, and overall budget. Compare actual activity against the original estimates to identify potential cost increases early.
5. Set approval thresholds for scope changes. Establish when additional work requires a revised estimate or approval before proceeding. This gives stakeholders an opportunity to understand the need for the additional work and its financial impact before costs are incurred.
6. Revisit the plan as the matter evolves. Review the scope and budget at key milestones throughout the project. If requirements change or the scope expands, work with your provider to identify what is necessary, where efficiencies can be gained, and how alternative approaches may impact costs, timelines, and defensibility.
Maintaining open communication with your eDiscovery provider can help identify potential cost increases early and avoid unexpected expenses. Consider asking:
What assumptions drive the estimate? Confirm the anticipated data volume, number of custodians, file types, review population, and expected hosting duration.
Which activities could create additional charges? Understand how processing exceptions, specialized workflows, expanded review requirements, production changes, or extended hosting may impact the budget.
How will changes to the scope be communicated? Establish who will receive updates, when revised estimates will be provided, and who is authorized to approve additional work.
What reporting is available? Understand how data volumes, project milestones, hosting usage, and overall spending will be tracked and reported against the budget.
Are there opportunities to reduce unnecessary work? Discuss whether early case assessment, targeted collection, data culling, analytics, or technology-assisted review can help improve efficiencies and manage costs.
What happens when the timeline changes? Understand how delays, additional collections, or extended hosting may affect the overall project budget.
For additional guidance, explore Array’s guide, How to Choose an eDiscovery Provider: Questions Legal Teams Should Ask Before Signing, which helps legal teams evaluate providers and clarify important service, pricing, and scope terms before a matter begins.
Why do eDiscovery costs increase after a project starts?
Costs can increase when the scope of work changes, more data is collected than originally anticipated, review volumes grow, production requirements expand, or hosting continues longer than anticipated. Additional processing and quality control may also be needed as new information is identified throughout the matter.
What is eDiscovery scope creep?
eDiscovery scope creep occurs when the work required for a matter expands beyond what was originally planned. This can include adding custodians, data sources, file types, review requirements, or production specifications without fully considering the impact on the overall budget and timeline.
How can legal teams prevent discovery cost overruns?
Start with a clearly defined scope and realistic budget, monitor project activity regularly, and maintain open communication about any changes. Regular reporting and clear approval procedures can help teams identify potential cost increases early and make informed decisions before additional expenses are incurred.
Can an eDiscovery cost calculator predict the final cost?
An eDiscovery cost calculator can help estimate potential costs based on the information provided, making it useful tool for initial budgeting and comparing scenarios. However, it cannot guarantee the final cost, as actual expenses will depend on data volumes, matter requirements, provider pricing, and any changes that occur during discovery.
When should we revisit our eDiscovery budget?
The budget should be revisited whenever there are significant changes to the scope, such as additional custodians or data sources, higher-than-expected data volumes, expanded review requirements, revised production specifications, or hosting extends beyond the expected timeline. Regular budget reviews throughout the project can also help identify smaller changes before they result in unexpected costs.
eDiscovery costs can change as a matter develops, but unexpected increases do not have to catch legal teams off guard. Clear scope definitions, realistic budget assumptions, ongoing reporting, and timely communication can help organizations understand where spending is going and make better decisions when requirements change.
Array helps legal teams manage the eDiscovery lifecycle, from data collection and processing to hosting, review, and production. Our team works with clients to develop workflows that reflect the needs of each matter, identify potential cost and risk considerations, and adapt as discovery requirements evolve.
Start planning with Array’s eDiscovery cost calculator to estimate potential costs and explore how different project assumptions may affect your budget. For guidance tailored to your matter, connect with Array to scope your next eDiscovery project. An informed starting point can help your team plan more confidently, communicate changes earlier, and maintain better visibility into discovery spending.