Cost overruns in budgeting?

Cost overruns in budgeting occur when the actual costs of a project or initiative exceed the budgeted amount. This can happen for a variety of reasons, including inaccurate cost estimates, unforeseen expenses, changes in scope or requirements, delays in project timelines, and poor project management.

Cost overruns can have significant negative impacts on a project, including delays in completion, strained relationships with stakeholders, and financial losses for the organization. To prevent cost overruns, it is important to carefully plan and monitor project budgets, regularly review and update cost estimates, identify and address potential risks, and communicate effectively with all stakeholders. Additionally, having contingency plans in place can help mitigate the impact of unexpected expenses.