What significant consequence can inaccurate estimates have on a project budget?

Inaccurate estimates can have a profound impact on a project budget, and one of the most significant consequences is that they can lead to funding shortfalls or project delays. When estimates are not accurately calculated, the budget may fall short of the necessary funds required to complete the project. This can happen because unseen costs, oversights, or underestimations of resources lead to expenses that exceed the expected amounts.

If a project runs out of funds due to these inaccuracies, it can cause significant delays as project managers must seek additional financing or revise project scopes to cut costs. Such funding shortfalls can disrupt schedules, hinder progress, and even jeopardize the project's completion altogether. This is why accurate estimates are crucial to ensure that all aspects of the project are properly budgeted and that resources are available when needed, thereby maintaining the timeline and overall integrity of the project.