What is the term for costs that exceed an allocated budget?

The term used to describe costs that exceed an allocated budget is "overruns." This occurs when actual expenses surpass the expected or planned financial limits set for a project. Overruns can happen for a variety of reasons, including unforeseen expenses, changes in project scope, or inefficiencies in project execution.

In project management and construction, managing budgets is critical, and understanding that overruns represent negative budgetary performance is essential. Recognizing and addressing overruns promptly can help contractors mitigate financial impacts and keep projects aligned with their financial goals.