When should cost estimates be reevaluated during a project?

Cost estimates should be reevaluated during the project lifecycle whenever significant changes arise because project conditions and circumstances can evolve over time. Factors such as scope changes, unexpected delays, regulatory modifications, or shifts in economic conditions can all impact the initial cost estimates. Regularly assessing costs allows project managers and stakeholders to make informed decisions, adjust project budgets accordingly, and ensure that the project remains financially viable.

Continuous monitoring and reevaluation of cost estimates help identify potential overruns early, enabling timely corrective actions to be taken. This proactive approach reduces the risk of financial mismanagement and supports effective project execution, ensuring that resources are allocated efficiently throughout the project's duration.