project cost overruns

Project cost overruns occur when a project’s expenses exceed the budgeted amount. This can result from unforeseen issues, mismanagement, or changes in project scope, requiring corrective actions to stay within budget.

Is there a risk of project cost overruns in this model?

Yes, there is a risk of project cost overruns in this model. The unpredictability and complexity of software development can lead to various factors that can cause cost overruns. However, by implementing effective project management strategies and closely monitoring the project progress, these risks can be minimized. It is crucial to establish clear project requirements, properly estimate the effort and resources required, and continuously track and manage any changes or scope creep that may occur. Regular communication and collaboration between the development team and stakeholders can also help identify and address any potential issues early on. By taking proactive measures and establishing a transparent and efficient project management process, the risk of cost overruns can be mitigated.

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