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
Stay updated on what’s happening in construction.
Subscribe to Blueprint, Procore’s free construction newsletter, to get content from industry experts delivered straight to your inbox.
Learn MoreLearn more about Budget overrun
BIM for Construction Cost Control & Budget Management
As the construction industry advances in its digital transformation journey, building information modeling (BIM) is becoming increasingly common. Teams and individuals who push back against using the 3D model and its associated processes usually have one common complaint: cost. Certainly, there’s some investment in BIM software, plus the training required to help team members use […]
How Project Phasing Keeps Construction Projects on Time and on Budget
Managing a construction project involves balancing countless tasks, coordinating multiple trades and meeting strict deadlines. Without a structured approach, it’s easy for projects to fall behind schedule or exceed budget. For general contractors, one of the most effective strategies for handling this complexity is project phasing. Project phasing divides a construction project into clear, sequential […]
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 […]
Construction Project Over Budget? Common Causes & Solutions
On construction projects, going over budget is an all-too-common scenario. This situation is more than a mere miscalculation: It can fundamentally alter the trajectory and outcome of a construction project and the companies involved. In the article, we delve into what happens when a project goes over budget — and how to prevent it from […]
How can we improve this glossary entry?
By clicking this button, you agree to our Privacy Notice and Terms of Service.