Cost Overruns
Cost overruns occur when the actual expenses of a project exceed the initial budget estimates. This can happen for various reasons, such as unexpected delays, rising material costs, or changes in project scope. Cost overruns can impact the overall success of a project and may lead to financial strain for organizations.
To manage cost overruns, project managers often implement strict budgeting practices and regular monitoring of expenses. Tools like project management software can help track costs in real-time, allowing teams to identify potential overruns early. Effective communication among stakeholders is also crucial to address issues promptly and keep the project on track.