What is a Cost Overrun (Budget overrun)?
A cost overrun refers to a situation in which the expenditure of funds exceeds the estimated budget and necessitates finding new resources to cover additional money spendings. Cost overruns most commonly occur as a result of of underestimating the overall budget required for a project. Cost overruns are most common in technology, building, and infrastructure projects.
Further Reading:
– 5 Project Management Life Cycle Steps Explained
– 10 Best Free Project Management Tools – Features Comparison
– 7 Strategies to Manage and Track Multiple Projects at Once
– 11 Project Management Best Practices You Need to Follow Right Now
All Terms
- Acceptance Criteria
- Adaptive Project Framework (APF)
- Aggregate Project Plan (APP)
- Agile
- Artifact
- Backlog
- Burn Rate
- Constraint
- CAPEX (Capital Expenditure)
- Change control
- Change freeze
- Change management plan
- Change request
- Closing Phase
- Communications Management Plan
- Cost Management Plan
- Cost Overrun (Budget overrun)
- Cost Performance Index (CPI)
- Critical Chain Project Management (CCPM)
- Critical Path
- Critical Path Method (CPM)
- Deliverable
- Dependency
- Execution Phase
- Extreme Programming (XP)
- Feasibility study
- Gantt Chart
- Human Resource Plan
- Initiation phase
- Iteration
- Just in Time (JIT)
- Kanban
- Kickoff Meeting
- Key Performance Indicator (KPI)
- Lead Time
- Lean Production
- Milestone
- Net present value (NPV)
- Objectives
- Planning phase
- PRINCE2 (PRojects IN Controlled Environments)
- Project
- Project Manager
- Quality Assurance (QA)
- Quality Control (QC)
- Risk
- Risk Register
- Schedule Management Plan
- Scheduling
- Scope
- Scope Creep
- Scrum
- Sprint
- Stakeholder
- Test
- Use Case
- User Acceptance Test (UAT)
- Virtual Teams
- Value stream mapping
- Work Breakdown Structure (WBS)
- Workaround
- Waterfall Methodology
- X-bar control chart
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What is a Cost Overrun (Budget overrun)?
A cost overrun refers to a situation in which the expenditure of funds exceeds the estimated budget and necessitates finding new resources to cover additional money spendings. Cost overruns most commonly occur as a result of of underestimating the overall budget required for a project. Cost overruns are most common in technology, building, and infrastructure projects.
Further Reading:
– 5 Project Management Life Cycle Steps Explained
– 10 Best Free Project Management Tools – Features Comparison
– 7 Strategies to Manage and Track Multiple Projects at Once
– 11 Project Management Best Practices You Need to Follow Right Now
