Kiandra Insights

Fear of Project Budget Overrun and How Technology Leaders Can Mitigate It

Cassandra Wallace - Head of Software Engineering
by
Cassandra Wallace
Head of Software Engineering
|
November 27, 2024
Cassandra Wallace
Head of Software Engineering
November 27, 2024
Worried man with hands on head against a background of a person using a calculator

One of the most significant fears technology leaders face when embarking on a custom software development project is the risk of a project budget overrun. This concern stems from the complex and often unpredictable nature of software development, where unforeseen challenges can lead to escalating costs. Here are 5 mitigation strategies we recommend to our clients when they embark on a software project with Kiandra.

Several factors contribute to this concern, including in accurate initial cost estimates, scope creep, technical debt, and unexpected technical challenges.

1. Inaccurate Initial Cost Estimates

Initial cost estimates can sometimes be overly optimistic or based on incomplete information. This can lead to a significant disparity between the projected and actual costs as the project progresses.

2. Scope Creep

Scope creep, where additional features and functionalities are added to the project after it has begun, can quickly result in a project budget overrun. These changes often require additional resources, time, and effort, driving up costs.

3. Technical Debt

Accumulating technical debt, which refers to the cost of additional rework caused by choosing an easy solution now instead of using a better approach that would take longer, can lead to increased future costs as more time and resources are needed to address these issues.

4. Unexpected Technical Challenges

Unforeseen technical difficulties or integration issues with existing systems can require additional development time and resources, leading to project budget overruns.

To mitigate the risk of project budget overruns, technology leaders can adopt several strategies:

1. Detailed Planning and Estimation

Invest time in thorough planning and estimation. Use historical data from past projects to inform more accurate cost estimates. Engage experienced developers and project managers who can provide realistic assessments of time and resources required.

2. Scope Management

Implement strict scope management practices. Clearly define the project scope from the outset and use change control processes to manage any modifications. Prioritise features and functionalities to ensure that essential elements are completed first.

3. Agile Development Methodologies

Employ agile development methodologies that allow for iterative progress and regular re-assessment of project goals. This approach provides flexibility to adapt to changes without causing significant project budget overrun.

4. Risk Management

Conduct regular risk assessments to identify potential budget risks early. Develop contingency plans and allocate a portion of the budget for unforeseen issues. Regularly review and update risk management strategies. See 10 Signs Your Software Project Is at Risk That You Won’t See on a Status Report.

5. Transparent Communication

Foster transparent communication among all stakeholders. Regularly update stakeholders on project progress, budget status, and any emerging risks. This transparency helps in early identification and resolution of potential project budget overrun.

By implementing these strategies, technology leaders can significantly reduce the risk of their custom software development projects going over budget, ensuring successful and cost-effective project outcomes.

Another step you can take to ensure project success is selecting the right software development partner.

Download Kiandra’s selection criteria checklist to learn more.

Share article
LinkedIn.com

More insights

An illustrated person holding a tablet, looking up at a large, abstract AI brain filled with interconnected circuits and nodes, symbolising the integration of technology and human thinking.

AI and the human factor: what I’ve learned leading a team through change

Aarti Nagpal
26/6/2025

As a Software Delivery Team Lead, I’ve experienced firsthand how our strength lies in pairing deep technical expertise with a culture that genuinely values people. We’re not here to chase hype. We’re here to build things that matter, with teams that are empowered, curious, and supported.

Read more
A stylised digital padlock glowing in neon colours, symbolising cybersecurity and data protection. The background features abstract data panels and glowing lines, representing a secure digital infrastructure.

Personal data in government systems isn’t just sensitive, it’s sacred.

David Velasquez
25/6/2025

When you’re delivering software for government, there are no shortcuts. Security isn’t a feature. It’s a non-negotiable. At Kiandra, we work with government departments where privacy, compliance, and performance must co-exist – from health records to social services.

Read more
A professionally designed booklet titled "Future ready logistics: How low-code and AI are redefining transport software" lies on a dark purple surface with magenta lines. The cover features a man in a warehouse or control room using a laptop, with the Kiandra logo in the bottom right corner. The subtitle reads, "A guide for transport and logistics leaders."

Modernise logistics systems faster without compromising on compliance, control or performance: A guide for transport and logistics leaders

Cassandra Wallace
23/6/2025

The logistics and transport industry is under more pressure than ever: rising costs, tighter delivery windows, and growing compliance demands – all while customer expectations keep climbing.

Read more

Let’s discuss your next project

Whether you’re curious about custom software or have a specific problem to solve – we’re here to answer your questions. Fill in the following form, and we’ll be in touch soon.

Email

Would you like to receive an occasional email showcasing the latest insights, articles and news from our team of software experts?

Thanks for reaching out! One of our software experts will be in
touch soon to help you with your enquiry
Oops! Something went wrong while submitting the form.

This website uses cookies to improve your experience. By browsing our website you consent to the use of cookies as detailed in our Privacy Policy