Hidden and Unforeseen Costs

This category refers to those costs that the developers are not able to anticipate, which lead to an increase in the overall cost and risk of the project involved. These hidden and unforeseen costs are common in numerous projects, particularly in the case of large projects or projects implementing new technologies.

Those hidden and unforeseen costs include high transaction costs for obtaining information and the costs of monitoring and controlling economic exchanges (such as contracted renovation work). Reducing risks of such costs may require the employment of external experts to identify the best solution for each individual situation, which can generate considerable additional expenses.

Other unforeseen costs may be caused by unanticipated changes in the behavior of the stakeholders, or any other risk factors that were not accounted for in the planning of the project.