Budget overrun
Occurs when the actual costs exceed the budgeted amount.
Budget overruns occur when actual project costs exceed the planned budget, potentially impacting project viability and financial stability. Causes can include inaccurate initial estimates, scope changes, and unforeseen conditions. Effective cost management, regular monitoring, and contingency planning are crucial to mitigate overruns, ensuring the project remains within financial constraints and achieves its objectives without compromising quality or scope.
Used in a sentence
The project faced a budget overrun due to unforeseen site conditions.
Synonyms/variation
Cost Overrun
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Estimate vs. Budget: Tools to Guide Construction Financial Planning
Whether building a residential home, a commercial complex or a large-scale infrastructure development, understanding and managing costs is key to completing a project on time and within financial limits. Effective financial planning allows project managers to handle unexpected challenges and maintain client trust. Two primary tools in financial planning for construction are the estimate and […]
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