Budget Overruns in Cost Estimation
Definition
Poor estimation methods cause projects to exceed budgets, with total costs ranging from AUD 66,500-95,000 for mid-sized projects due to misjudged hours and rates.
Key Findings
- Financial Impact: AUD 20,000-100,000+ overrun per project; 1800-2200 hours at AUD 35-50/hr totaling AUD 66,500-95,000[1]
- Frequency: Per project, common in complex IT designs
- Root Cause: Inaccurate bottom-up or three-point estimation lacking automation
Why This Matters
The Pitch: IT System Design Services in Australia 🇦🇺 waste AUD 20,000+ per project on overruns. Automation of estimation tools eliminates this risk.
Affected Stakeholders
Project Managers, Estimators, Finance Teams
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Planning Phase Cost Inflation
Decision Errors from Faulty Budget Planning
ATO BAS Lodgement Penalties
Fair Work Record-Keeping Fines
Rework from Poor Solution Design Documentation
Delayed Invoicing from Design Documentation Gaps
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