How can review delays affect project costs?

Review delays often result in increased costs because they can prolong project timelines. When a project is delayed, a number of financial implications can arise. For instance, the extended duration may lead to higher operational costs, as resources (such as staff and materials) are utilized for a longer period than initially planned. This can also result in missed deadlines, which might incur penalties or lead to lost business opportunities. Additionally, extended review periods can lead to increased overhead expenses, as companies may need to allocate more budget toward managing the project for an extended timeline.

Overall, these financial implications highlight why review delays are a critical concern in project management, directly correlating them to increased project costs.