How do you handle discrepancies between your estimates and actual project costs?

Your Answer

How To Answer This Question?

When answering this question, emphasize your analytical and problem-solving skills. Explain that discrepancies between estimates and actual costs can occur due to unforeseen circumstances, changes in project scope, or inaccurate initial data. Provide a structured approach to handling these discrepancies, such as:

1. Identify the Cause: Start by identifying the root cause of the discrepancy. Was it due to a change in project scope, unexpected site conditions, or an error in the initial estimate?
2. Communicate: Clearly communicate the discrepancy to all stakeholders, including project managers, clients, and team members. Transparency is key.
3. Adjust and Reforecast: Adjust the project plan and budget accordingly. Reforecast the remaining project costs and timelines based on the new information.
4. Implement Controls: Put in place measures to prevent similar discrepancies in the future. This could include more thorough site assessments, better data collection, or improved estimation techniques.
5. Document Lessons Learned: Document the discrepancy and the steps taken to address it. Use this as a learning opportunity to improve future estimates.

Example: "In a previous project, we encountered unexpected soil conditions that significantly increased excavation costs. I immediately communicated this to the project manager and client, adjusted our budget and timeline, and implemented more rigorous site assessments for future projects to prevent similar issues."