Step 01

As with most questions in this guide, prevention is better than the cure. Before you even start the project, have a clear, detailed budget with built-in contingencies. Buffers only work well if they are used under extraordinary circumstances.

Step 02

Don’t wait for the final invoice to realize you’re over budget. Regular financial reviews should be as much a part of your project rhythm as status updates. If your agency isn’t proactively providing these, demand them. Any good agency will use an hour tracking system and should be able to provide you with a detailed overview over how their time and your money was spent, at least once a month.

Step 03

Ask “why”? Budget overruns don’t just happen. Was it scope creep? Unforeseen technical challenges? Your CEO’s sudden desire to jump in the latest hype train? Identify the root cause before you start assigning blame.

Step 04

What does your agreement say about budget overruns? If you don’t know, it’s time to dig out that contract and give it a thorough read. Some agencies offer risk sharing in a case like this.

Step 05

Accountability cuts both ways. Budget overruns are rarely 100% the agency’s fault. Were you clear in your initial requirements? Did you approve scope changes without considering the budget impact?

A good agency will inform you proactively about budget-related risks as soon as they discover them and seek solutions together with you.

Closely tied to budget overruns is the importance of managing expectations. Misaligned expectations are often the root cause of dissatisfaction, even when a project delivers solid results. Transparent communication from the outset about what is feasible within the agreed budget and timeline is crucial. Clients and agencies should align on priorities, potential trade-offs, and what constitutes success. By addressing uncertainties early and consistently recalibrating expectations throughout the project, both parties can build trust and foster a more collaborative relationship.