Cost overrun

A cost overrun is the amount by which actual expenditures exceed the planned amount. A cost overrun may occur for the following reasons:

  • The scope of the project was expanded without a sufficient increase in its planned cost.
  • The original planned cost was too low.
  • The business did not adequately oversee actual expenditures.

Cost overruns are common in large-scale projects, such as infrastructure and information technology projects.

Related Courses

Cost Management Guidebook 
Project Management