IntermediateBEHAVIORAL
Describe a situation where you identified a significant cost overrun on a project. What actions did you take to quantify, communicate, and mitigate the issue?
Project Accountant
General

Sample Answer

On a highway expansion I discovered a cumulative material overrun of $420K after noticing monthly cement receipts were 18% higher than budgeted. I dug into purchase orders, delivery tickets, and subcontracts and isolated a specification change that increased mix requirements. I quantified exposure by modeling best- and worst-case scenarios and reforecasted the project to show a $320K to $500K range. I presented the numbers to the PM and contracts team within 48 hours, recommended re-negotiating pricing scope with the supplier, and instituted a temporary hold on non-essential orders. Negotiations recouped $150K, change order approval covered $130K, and the remaining $140K was mitigated by optimizing pour sequencing, bringing net overrun to $40K — within contingency.

Keywords

Rapidly quantify overrun with source documents and scenario modelingCommunicate clear exposure and recommended actions within 48 hoursUse commercial levers (re-negotiation, change orders) and operational changes to mitigate