Which type of cost may arise due to mismanagement or conflicts during the project?

Consequential costs are costs that are not directly linked to the project but arise as a consequence of mismanagement, conflicts, or unforeseen issues during the course of a project. These costs can include delays that lead to increased expenses, penalties due to missed deadlines, or loss of business opportunities stemming from project inefficiencies. They often reflect the broader impact of poor planning or conflict resolution on the project's overall budget and timeline.

In contrast, authoritative costs pertain to expenses that arise from specific directives or mandates within the project framework. Direct costs are expenses directly tied to project resources, such as labor and materials, while contingency funds are set aside in anticipation of unexpected costs and are not strictly associated with issues arising from mismanagement. Thus, the identification of consequential costs highlights the financial implications that can result from operational issues within a project.