What term best describes the financial consequences of poor project management?

The term that best describes the financial consequences of poor project management is cost overruns. This term specifically refers to instances when the actual costs of completing a project exceed the originally budgeted amounts. Poor project management can lead to inefficiencies, delays, and increased expenses, all of which contribute to cost overruns.

When a project is poorly managed, various elements such as scheduling, resource allocation, and scope can spiral out of control, resulting in unplanned expenditures. These additional costs can arise from a variety of factors, such as the need for overtime labor, expedited shipping for materials, or the hiring of additional subcontractors to complete tasks that were not finished on time.

Understanding this term is crucial for contractors and project managers, as it underscores the importance of effective planning and management practices to keep a project within its financial constraints and to maintain profitability.